Does RSI(2) dip buy actually work on QQQ? We tested it
We ran RSI(2) dip buy on QQQ through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 79 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 74% gain on QQQ by buying only when the 2-day RSI dipped below 10 while the price was above its 200-day moving average. The ride was fairly steady, with a win rate of 77% and a modest average gain of 0.77% per trade, but the worst stretch hit a 10.98% loss from early February to mid-March 2025, which is where it hurt most. The result does not appear driven by just a few lucky trades, since 74 trades were taken and the consistency shows it was profitable in 3 out of 4 test periods. The entry timing itself has a real edge, beating 79% of random entry runs, meaning the entry signal is doing meaningful work rather than the exits carrying the load. Overall, this setup provided a reliable, repeatable edge with a manageable drawdown, though the worst period was a concentrated loss that lasted about five weeks.
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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