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Trend · MSTR · 1D

Does OBV trend confirmation actually work on MSTR? We tested it

We ran OBV trend confirmation on MSTR through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 90 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +1168.0%
Win rate 30.5%
Max drawdown −77.5%
Trades 82
Sharpe 0.94
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 +0.8% 0.11 13
2 Jul 2020 to Jul 2022 +88.5% 0.98 19
3 Jul 2022 to Jul 2024 +531.4% 2.11 24
4 Jul 2024 to Jul 2026 −6.0% 0.17 25
3 of 4 periods positive. Mean Sharpe 0.84. Worst period −6.0%.
Market matrix
Edge held on 4 of 28

The same rules, tested on 28 tickers. Edge held on 4. We ship it on those.

MSTR SHIPPED
90/100 EDGE
NFLX
94/100 EDGE
GOOGL
86/100 EDGE
TSLA
77/100 EDGE
Show every ticker we tested
RIOT
91/100 NONE
AMZN
75/100 NONE
SMCI
72/100 NONE
MARA
65/100 NONE
UBER
59/100 NONE
AAPL
57/100 NONE
XOM
42/100 NONE
QQQ
34/100 NONE
COIN
33/100 NONE
AMD
28/100 NONE
MU
24/100 NONE
BA
21/100 NONE
DIA
20/100 NONE
JPM
16/100 NONE
GLD
12/100 NONE
IWM
7/100 NONE
NVDA
7/100 NONE
SPY
4/100 NONE
MSFT
2/100 NONE
META
1/100 NONE
AVGO
0/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
SOFI
too new TOO NEW
The rules
Entrywhen OBV of close crosses above SMA of obv over 20 bars AND close is above SMA of close over 200 bars
Exitwhen a signal fires (OBV of close crosses below SMA of obv 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 substantial profit of 1168%, but the ride was extremely lumpy and painful. The worst stretch was a brutal drawdown of over 77% that lasted more than two years, from early 2021 to mid-2023, which would have tested anyone's patience. With a win rate of only 30%, the strategy relied on a few big winners to overcome many small losses, so the result is not driven by just a handful of trades but by the size of the winners. The entry-timing edge is strong, as real entries beat 90% of random entry runs, meaning the entry signal itself is carrying the result rather than the exits doing the work. The consistency figure shows the edge appeared steadily across three of the four test periods, so it was not a fluke from one lucky stretch.

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