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Mean reversion · AAPL · 1D

Does Four-down-days bounce actually work on AAPL? We tested it

We ran Four-down-days bounce on AAPL through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 92 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +33.9%
Win rate 77.8%
Max drawdown −4.6%
Trades 36
Sharpe 0.81
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 +5.3% 1.36 3
2 Jul 2020 to Jul 2022 +10.5% 1.03 8
3 Jul 2022 to Jul 2024 −1.2% −0.13 8
4 Jul 2024 to Jul 2026 +2.6% 0.47 11
3 of 4 periods positive. Mean Sharpe 0.68. Worst period −1.2%.
Market matrix
Edge held on 7 of 28

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

AAPL SHIPPED
92/100 EDGE
NVDA
100/100 EDGE
TSLA
98/100 EDGE
META
86/100 EDGE
UBER
81/100 EDGE
MSTR
79/100 EDGE
AVGO
77/100 EDGE
Show every ticker we tested
JPM
77/100 NONE
GOOGL
74/100 NONE
AMZN
63/100 NONE
MU
58/100 NONE
AMD
52/100 NONE
MSFT
46/100 NONE
RIOT
42/100 NONE
DIA
36/100 NONE
SPY
34/100 NONE
XOM
27/100 NONE
SMCI
22/100 NONE
IWM
21/100 NONE
COIN
21/100 NONE
MARA
19/100 NONE
GLD
18/100 NONE
SOFI
12/100 NONE
QQQ
8/100 NONE
NFLX
7/100 NONE
BA
5/100 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 below close 1 bar ago AND close 1 bar ago is below close 2 bars ago AND close 2 bars ago is below close 3 bars ago AND close 3 bars ago is below close 4 bars ago
Exitwhen a signal fires (close is above close 1 bar ago), 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, returning nearly 34% with a high win rate of almost 78%, so most trades were winners. The ride was fairly steady, with a maximum drawdown of only about 4.6%, though that losing stretch lasted from May 2023 to January 2024, which is where it hurt most. With only 36 trades total, the result is not driven by just a few big winners, as the average trade gained 0.83%. The entry timing shows a strong edge, beating 92% of random entries, meaning the specific setup of buying after four down days above the 200-day average is doing the heavy lifting. The consistency figure shows the edge held up across three out of four test periods, so the profit 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.