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Mean reversion · MSFT · 1D

Does Turtle Soup reversal actually work on MSFT? We tested it

We ran Turtle Soup reversal on MSFT through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 92 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +43.8%
Win rate 76.2%
Max drawdown −14.7%
Trades 21
Sharpe 0.49
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 +7.3% 0.33 6
2 Jul 2020 to Jul 2022 +10.6% 0.89 5
3 Jul 2022 to Jul 2024 +12.8% 1.20 5
4 Jul 2024 to Jul 2026 −3.5% −0.60 1
3 of 4 periods positive. Mean Sharpe 0.46. Worst period −3.5%.
Market matrix
Edge held on 3 of 28

The same rules, tested on 28 tickers. Edge held on 3. We ship it on those.

MSFT SHIPPED
92/100 EDGE
META
95/100 EDGE
JPM
78/100 EDGE
Show every ticker we tested
COIN
94/100 NONE
NFLX
73/100 NONE
DIA
71/100 NONE
NVDA
66/100 NONE
RIOT
66/100 NONE
AVGO
57/100 NONE
MSTR
54/100 NONE
MARA
46/100 NONE
AMZN
42/100 NONE
AMD
42/100 NONE
BA
41/100 NONE
SPY
39/100 NONE
IWM
27/100 NONE
UBER
21/100 NONE
GOOGL
19/100 NONE
MU
8/100 NONE
GLD
6/100 NONE
QQQ
5/100 NONE
AAPL
3/100 NONE
TSLA
2/100 NONE
PLTR
too new TOO NEW
HOOD
too new TOO NEW
XOM
too new TOO NEW
SMCI
too new TOO NEW
SOFI
too new TOO NEW
The rules
Entrywhen the low sweeps below the last confirmed swing low and closes back above it AND close is above SMA of close over 200 bars
Exitwhen a signal fires (close is at or above HIGHEST of close over 5 bars), or 10 bars have passed since entry (time stop)
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 money overall, turning a 43.84% total return on 21 trades, but the ride was very lumpy. The worst hit came in March 2020, where a single brutal drawdown of -14.75% happened in just two days, which would have been painful to sit through. The high win rate of 76.19% suggests most trades were small winners, but the low Sharpe ratio of 0.49 confirms the overall path was choppy and not smooth. The entry timing is a strong point, as real entries beat 92% of random entry runs, meaning the entry signal itself is carrying the result rather than the exits. The edge was consistent, showing up in 3 out of 4 walk-forward periods, so the profit was not just from one lucky stretch.

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