Does RSI(2) dip buy actually work on MSFT? We tested it
We ran RSI(2) dip buy on MSFT through walk-forward testing and a 100-run random-entry gauntlet. 3 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 7. We ship it on those.
Show every ticker we tested
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.
Every verdict on this page comes from the same process. How we test.
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