Does Stochastic oversold bounce actually work on META? We tested it
We ran Stochastic oversold bounce on META through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 77 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 92.69% total return, but the ride was extremely lumpy. The worst period was a brutal -39.46% drawdown that lasted from early 2018 through the COVID crash in March 2020, meaning you would have sat on a deep loss for over two years. While the win rate is high at 84.38%, the average trade only gained 2.30%, so the profit came from many small wins rather than a few home runs. The entry timing shows a real edge, beating 77% of random entries, so the setup itself is picking good spots to get in. The consistency figure shows the edge was present in 3 out of 4 test periods, so the profit was not just from one lucky stretch, but it did struggle badly during that long 2018-2020 drawdown.
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.