Does RSI(2) below 5 dip buy actually work on GOOGL? We tested it
We ran RSI(2) below 5 dip buy on GOOGL through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 95 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, turning a 79% total return over 37 trades, and the ride was fairly steady with a high 81% win rate and an average gain of 1.6% per trade. The worst pain came from a single drawdown of -12.45% that lasted from January to October 2018, which is the only period where the strategy really struggled. The result is not driven by just a few lucky trades, since the edge shows up consistently across all four walk-forward test periods. The entry timing is strong, beating 95% of random entries, meaning the buy signal itself is doing most of the work rather than the exits. Overall, this is a reliable dip-buying setup that suffers only during prolonged downtrends that break the 200-day moving average.
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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