Does RSI(2) below 5 dip buy actually work on QQQ? We tested it

This strategy made money overall, turning a 35.44% total return on QQQ with a very high win rate of 82%, meaning most of the 39 trades were winners. However, the ride was lumpy, as shown by a Sharpe ratio of just 0.56 and a worst drawdown of nearly 11% that hit from late February to mid-March 2025, which is where the pain was concentrated. The entry timing appears to be doing the heavy lifting here, since the real entries beat 81% of random entry runs, so getting in at the right moment is crucial. The edge was fairly consistent, as the strategy was profitable in 3 out of 4 walk-forward test periods, so the result is not just from one lucky stretch. Overall, the setup works when it catches a dip, but the drawdown shows it can still suffer a sharp pullback.