Does RSI(2) dip buy actually work on AVGO? We tested it
We ran RSI(2) dip buy on AVGO through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 97 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 290% return on AVGO by buying when the 2-period RSI dipped below 10 while the stock was above its 200-day moving average. The ride was fairly steady with a solid win rate of nearly 76%, but it did have one painful stretch where it lost over 21% from mid-February to early March 2025. That drawdown was the worst hit, and it happened in a concentrated period, not spread out over time. The result is not driven by just a few lucky trades, since the entry timing edge is strong: your entries beat 97% of random entry runs, meaning the entry signal itself is doing the heavy lifting. The edge also showed up consistently, as the strategy was profitable in three out of four walk-forward test periods, so it wasn't a one-stretch wonder.
Every verdict on this page comes from the same process. How we test.
Bigger picture: Does buying the dip actually work?
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