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Mean reversion · SMCI · 1D

Does Bollinger snapback actually work on SMCI? We tested it

We ran Bollinger snapback on SMCI through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 81 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +425.9%
Win rate 80.0%
Max drawdown −50.8%
Trades 40
Sharpe 0.71
Equity curve

Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.

PeriodWindowReturnSharpeTrades
1 Aug 2018 to Jul 2020 −1.1% 0.27 2
2 Jul 2020 to Jul 2022 +50.3% 1.07 9
3 Jul 2022 to Jul 2024 +186.4% 2.25 9
4 Jul 2024 to Jul 2026 +2.0% 0.33 8
3 of 4 periods positive. Mean Sharpe 0.98. Worst period −1.1%.
Market matrix
Edge held on 5 of 28

The same rules, tested on 28 tickers. Edge held on 5. We ship it on those.

SMCI SHIPPED
81/100 EDGE
MSFT
99/100 EDGE
AMZN
83/100 EDGE
AVGO
81/100 EDGE
UBER
75/100 EDGE
Show every ticker we tested
JPM
71/100 NONE
SPY
70/100 NONE
MARA
62/100 NONE
GLD
59/100 NONE
MU
58/100 NONE
MSTR
57/100 NONE
NFLX
56/100 NONE
PLTR
54/100 NONE
GOOGL
49/100 NONE
DIA
47/100 NONE
AMD
45/100 NONE
NVDA
43/100 NONE
IWM
42/100 NONE
QQQ
37/100 NONE
COIN
37/100 NONE
META
34/100 NONE
SOFI
32/100 NONE
XOM
31/100 NONE
RIOT
27/100 NONE
TSLA
21/100 NONE
BA
21/100 NONE
AAPL
9/100 NONE
HOOD
too new TOO NEW
The rules
Entrywhen close crosses below BBANDS lower band of close over 20 bars
Exitwhen a signal fires (close crosses above BBANDS middle band of close over 20 bars)
Sizing**Position size:** no fixed stop distance to size against. This strategy exits on signal only. Size by conviction, or add a hard stop for a size-by-risk number.
Diagnosis

This strategy made a strong profit of over 425% on 40 trades, but the ride was extremely lumpy. The worst stretch was a brutal 50.82% drawdown from late July to mid-November 2024, which means the account would have been cut in half during that period. The high 80% win rate and average gain of 4.78% per trade suggest the strategy wins often, but the deep drawdown shows it can suffer a painful losing streak. The entry timing has a solid edge, beating 81% of random entries, so the entry signal itself is doing much of the work rather than the exits. The strategy was profitable in 3 out of 4 test periods, so the edge is fairly consistent and not just a fluke from one lucky stretch.

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Backtested results, not live trading returns. Fees and slippage included. Not investment advice.