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Trend · MSTR · 1D

Does EMA 20/50 trend rider actually work on MSTR? We tested it

We ran EMA 20/50 trend rider on MSTR through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 89 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +774.5%
Win rate 28.0%
Max drawdown −66.6%
Trades 25
Sharpe 0.85
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 −14.5% −0.86 5
2 Jul 2020 to Jul 2022 +318.3% 1.75 5
3 Jul 2022 to Jul 2024 +123.2% 1.19 6
4 Jul 2024 to Jul 2026 +89.3% 1.10 3
3 of 4 periods positive. Mean Sharpe 0.80. Worst period −14.5%.
Market matrix
Edge held on 7 of 28

The same rules, tested on 28 tickers. Edge held on 7. We ship it on those.

MSTR SHIPPED
89/100 EDGE
NFLX
97/100 EDGE
META
95/100 EDGE
AMD
94/100 EDGE
QQQ
86/100 EDGE
NVDA
80/100 EDGE
AAPL
79/100 EDGE
Show every ticker we tested
RIOT
94/100 NONE
COIN
93/100 NONE
XOM
80/100 NONE
UBER
68/100 NONE
MSFT
66/100 NONE
SPY
58/100 NONE
IWM
53/100 NONE
PLTR
52/100 NONE
GLD
45/100 NONE
AVGO
44/100 NONE
DIA
39/100 NONE
GOOGL
30/100 NONE
MU
30/100 NONE
JPM
30/100 NONE
AMZN
29/100 NONE
TSLA
26/100 NONE
BA
19/100 NONE
SOFI
14/100 NONE
SMCI
5/100 NONE
MARA
5/100 NONE
HOOD
too new TOO NEW
The rules
Entrywhen EMA of close over 20 bars crosses above EMA of close over 50 bars
Exitwhen a signal fires (close crosses below EMA of close over 50 bars), or stop-loss at -10%
Sizing**Position size:** risk 1% of account → position ≈ 10.0% of account (1% ÷ stop 10%).
Diagnosis

This strategy made a lot of money overall, turning a 774% total return on MSTR, but the ride was extremely lumpy and painful. The worst stretch was a massive 66.59% drawdown that lasted over two and a half years, from early 2021 to late 2023, which would have tested anyone's patience. The entry timing is doing the heavy lifting here, since the real entries outperformed 89% of random entry runs, meaning the exits are not the main source of edge. The edge also shows up reliably, as the strategy was profitable in 3 out of 4 walk forward periods, so the success wasn't just from one lucky streak. However, with only 25 trades and a 28% win rate, the result is driven by a few big winners that made up for many small losses.

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