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Mean reversion · NFLX · 1D

Does Five-day-low pullback actually work on NFLX? We tested it

We ran Five-day-low pullback on NFLX through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 82 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +176.3%
Win rate 73.6%
Max drawdown −28.9%
Trades 110
Sharpe 0.72
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 +7.7% 0.33 20
2 Jul 2020 to Jul 2022 +26.6% 0.84 22
3 Jul 2022 to Jul 2024 +16.7% 0.56 27
4 Jul 2024 to Jul 2026 +39.7% 1.32 24
4 of 4 periods positive. Mean Sharpe 0.76. Worst period +7.7%.
Market matrix
Edge held on 3 of 28

The same rules, tested on 28 tickers. Edge held on 3. We ship it on those.

NFLX SHIPPED
82/100 EDGE
AMD
86/100 EDGE
QQQ
80/100 EDGE
Show every ticker we tested
MSTR
94/100 NONE
XOM
82/100 NONE
GLD
73/100 NONE
META
66/100 NONE
SMCI
65/100 NONE
NVDA
62/100 NONE
DIA
57/100 NONE
COIN
54/100 NONE
GOOGL
51/100 NONE
SPY
48/100 NONE
AVGO
48/100 NONE
RIOT
48/100 NONE
BA
48/100 NONE
JPM
45/100 NONE
AMZN
43/100 NONE
MARA
43/100 NONE
MSFT
36/100 NONE
AAPL
27/100 NONE
UBER
25/100 NONE
IWM
15/100 NONE
TSLA
4/100 NONE
MU
4/100 NONE
SOFI
3/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
The rules
Entrywhen close is above SMA of close over 200 bars AND close is at or below LOWEST of close over 5 bars
Exitwhen a signal fires (close is at or above HIGHEST of close over 5 bars), or 10 bars have passed since entry (time stop)
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 money overall, turning a 176% total return on NFLX over 110 trades. The ride was fairly lumpy, with a maximum drawdown of nearly 29% that lasted about a year from late 2021 through late 2022, which is where it hurt the most. The high win rate of 73.6% suggests the setup was reliable, but the average trade only gained about 1%, so the profits came from many small wins rather than a few big home runs. The entry timing shows a real edge, beating 82% of random entries, meaning the specific condition of buying at a five-day low in an uptrend is doing the heavy lifting rather than the exits. The strategy was consistent across all four walk-forward test periods, so the edge did not come from just one lucky stretch.

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