Does Stochastic %K/%D cross actually work on JPM? We tested it
We ran Stochastic %K/%D cross on JPM 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 7. We ship it on those.
Show every ticker we tested
This strategy made money overall, turning a 140.97% total return on JPM with a very high win rate of 86.21%, meaning most trades were winners. The ride was fairly steady with a Sharpe ratio of 1.13, but it did have one rough patch where the account dropped 14.91% from late February to mid-March 2025, which was the worst drawdown. With only 29 trades over the test period, the result is not driven by just a few lucky trades, as the average gain per trade was a solid 3.13%. The entry timing is doing a good job here, since the real entries beat 76% of random entry runs, so the setup is picking better spots to get in rather than relying on exits to save the day. The edge also appears consistent, as the strategy was profitable in all four walk-forward test periods, so the performance didn't come from just one lucky stretch.
Every verdict on this page comes from the same process. How we test.
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