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Mean reversion · XOM · 1D

Does RSI(2) dip buy actually work on XOM? We tested it

We ran RSI(2) dip buy on XOM through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 86 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +47.2%
Win rate 70.6%
Max drawdown −13.1%
Trades 51
Sharpe 0.56
Equity curve

Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.

PeriodWindowReturnSharpeTrades
1 Aug 2018 to Jul 2020 +0.1% 0.08 1
2 Jul 2020 to Jul 2022 +26.0% 1.09 15
3 Jul 2022 to Jul 2024 −1.1% 0.01 15
4 Jul 2024 to Jul 2026 +1.4% 0.14 16
3 of 4 periods positive. Mean Sharpe 0.33. Worst period −1.1%.
Market matrix
Edge held on 7 of 28

The same rules, tested on 28 tickers. Edge held on 7. We ship it on those.

XOM SHIPPED
86/100 EDGE
NVDA
97/100 EDGE
AVGO
97/100 EDGE
MSFT
91/100 EDGE
AMD
86/100 EDGE
MU
84/100 EDGE
QQQ
79/100 EDGE
Show every ticker we tested
GLD
89/100 NONE
MSTR
83/100 NONE
MARA
72/100 NONE
SPY
71/100 NONE
GOOGL
64/100 NONE
META
60/100 NONE
SMCI
53/100 NONE
COIN
49/100 NONE
JPM
47/100 NONE
BA
46/100 NONE
NFLX
43/100 NONE
DIA
41/100 NONE
UBER
40/100 NONE
RIOT
36/100 NONE
TSLA
32/100 NONE
AAPL
27/100 NONE
IWM
19/100 NONE
SOFI
18/100 NONE
AMZN
13/100 NONE
PLTR
too new TOO NEW
HOOD
too new TOO NEW
The rules
Entrywhen RSI of close over 2 bars is below 10 AND close is above SMA of close over 200 bars
Exitwhen a signal fires (RSI of close over 2 bars is above 70)
Sizing**Position size:** no fixed stop distance to size against. This strategy exits on signal only. Size by conviction, or add a hard stop for a size-by-risk number.
Diagnosis

This strategy made money overall, turning a 47% total return across 51 trades. The ride was fairly lumpy, with a maximum drawdown of -13% that stretched for nearly a year from late 2022 into October 2023, which is where the strategy hurt most. The high win rate of 70% suggests the result wasn't driven by just a few lucky trades, but rather a steady pattern of small wins. The entry timing shows a real edge, as your actual entries beat 86% of random entry runs, meaning the specific moment you bought mattered a lot. The consistency figure shows the edge appeared in 3 out of 4 test periods, so the profit came from multiple stretches rather than a single hot streak.

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Backtested results, not live trading returns. Fees and slippage included. Not investment advice.