Does RSI(2) below 5 dip buy actually work on AMD? We tested it
We ran RSI(2) below 5 dip buy on AMD through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 91 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 10. We ship it on those.
Show every ticker we tested
This strategy made money overall, turning a 134% total return on AMD over 35 trades. The ride was fairly steady, with a high 77% win rate and an average gain of 2.57% per trade, but the worst moment came in early February 2026 when the account dropped 21.83% in just a few days. That drawdown was sharp and concentrated, so the strategy can hit a painful patch even though most trades work out. The result is not driven by just a few lucky trades, since the edge shows up consistently across all four test periods. The entry timing is doing the heavy lifting here, because the real entries beat 91% of random entry runs, meaning the signal to buy when RSI(2) dips below 5 while the price is above the 200-day average is what makes the strategy work, not the exit.
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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