Does Stochastic oversold bounce actually work on AVGO? We tested it
We ran Stochastic oversold bounce on AVGO through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 76 of 100 random-entry runs.
You gave up raw return for a higher win rate and a shallower drawdown. This setup is about timing and staying out of trouble, not beating the index.
Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.
The same rules, tested on 28 tickers. Edge held on 6. We ship it on those.
Show every ticker we tested
This strategy made money overall, turning a 207% total return on AVGO. However, the ride was very lumpy, with a brutal 48% drawdown that happened during the COVID crash in early 2020, which is where it hurt the most. The high win rate of 76% and average trade gain of 3.2% suggest the result was not driven by just a few lucky home runs, but by many small, steady wins. The entry-timing edge is solid, beating 76% of random entries, meaning the specific buy signal is doing most of the work rather than the exits. The consistency figure shows the edge held up across all four test periods, so the profit did not come from one lucky stretch.
Every verdict on this page comes from the same process. How we test.
Sign up free. EdgeStacker runs a fresh backtest for you, then alerts you on the Today screen when the setup fires.