Does RSI(2) dip buy actually work on MSFT? We tested it

This strategy made money overall, turning a 110% total return on Microsoft over the test period. The ride was fairly steady, with a 71.88% win rate and an average trade gain of 1.18%, but it had one very lumpy moment: the worst drawdown was a steep 15.85% loss that happened in just a few days around March 2020, which was likely the COVID crash. The entry timing is a strong part of the story, since real entries beat 91% of random entry runs, meaning the setup of buying when the 2-period RSI dips below 10 while price is above the 200-day SMA is doing the heavy lifting. The consistency figure shows the edge held up across three out of four walk-forward periods, so the profit wasn't just from one lucky stretch. Overall, the result looks driven by a reliable entry signal rather than a handful of outlier trades, though the drawdown shows it can get hit hard during a market panic.