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

This strategy made money overall, returning 25.36% on AVGO over 38 trades, and it did so with a high win rate of nearly 74%. The ride was fairly steady, as the Sharpe ratio of 0.59 suggests modest risk-adjusted returns, but it did have a rough patch with a worst drawdown of -7.72% that lasted from October 2021 to January 2022. That drawdown period was the most painful part of the backtest, showing where the setup struggled the most. The result does not appear to be driven by just a few lucky trades, since the average trade returned a solid 0.62%. The entry-timing edge is meaningful, with real entries beating 77% of random entry runs, meaning the entry signal itself is doing a good job of picking the right moments to buy, rather than the exits carrying the strategy. The consistency figure shows the edge was reliable, as the strategy was profitable in 3 out of 4 walk-forward test periods, so the performance came from steady execution across different market stretches rather than one lucky streak.