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Trend · MSTR · 1D

Does Parabolic SAR flip actually work on MSTR? We tested it

We ran Parabolic SAR flip on MSTR through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 100 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +1354.1%
Win rate 35.7%
Max drawdown −57.3%
Trades 56
Sharpe 1.00
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 −21.9% −1.04 16
2 Jul 2020 to Jul 2022 +142.7% 1.25 11
3 Jul 2022 to Jul 2024 +543.4% 2.20 15
4 Jul 2024 to Jul 2026 +24.5% 0.56 12
3 of 4 periods positive. Mean Sharpe 0.74. Worst period −21.9%.
Market matrix
Edge held on 10 of 28

The same rules, tested on 28 tickers. Edge held on 10. We ship it on those.

MSTR SHIPPED
100/100 EDGE
GOOGL
99/100 EDGE
RIOT
97/100 EDGE
GLD
88/100 EDGE
NFLX
86/100 EDGE
MU
83/100 EDGE
UBER
83/100 EDGE
SPY
82/100 EDGE
NVDA
80/100 EDGE
JPM
78/100 EDGE
Show every ticker we tested
MARA
82/100 NONE
QQQ
74/100 NONE
COIN
68/100 NONE
AAPL
66/100 NONE
XOM
64/100 NONE
MSFT
61/100 NONE
AMD
43/100 NONE
TSLA
38/100 NONE
DIA
37/100 NONE
META
35/100 NONE
IWM
30/100 NONE
AMZN
26/100 NONE
SMCI
24/100 NONE
AVGO
22/100 NONE
BA
5/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
SOFI
too new TOO NEW
The rules
Entrywhen close crosses above PSAR(0.02/0.2) of close AND close is above SMA of close over 200 bars
Exitwhen a signal fires (close crosses below PSAR(0.02/0.2) of close)
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 lot of money overall, turning a 1354% total return, but the ride was extremely lumpy. The worst moment was a brutal 57% drawdown that lasted over two years, from early 2021 to early 2023, which would have been very painful to sit through. The entry timing is carrying the entire result, because the real entries beat 100% of random entry runs, meaning the exits are not the source of the edge. The edge is also consistent, as the strategy was profitable in 3 out of 4 test periods, so the profit did not come from just one lucky stretch. However, the win rate is only 36%, so most trades lost money, but the few winners were large enough to drive the overall gain.

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