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Mean reversion · MSTR · 1D

Does RSI(2) dip, MA exit actually work on MSTR? We tested it

We ran RSI(2) dip, MA exit on MSTR through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 96 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +121.8%
Win rate 65.5%
Max drawdown −30.4%
Trades 55
Sharpe 0.55
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 −3.8% −0.25 13
2 Jul 2020 to Jul 2022 +16.1% 0.48 12
3 Jul 2022 to Jul 2024 +25.1% 0.64 15
4 Jul 2024 to Jul 2026 +40.6% 0.86 15
3 of 4 periods positive. Mean Sharpe 0.43. Worst period −3.8%.
Market matrix
Edge held on 9 of 28

The same rules, tested on 28 tickers. Edge held on 9. We ship it on those.

MSTR SHIPPED
96/100 EDGE
NVDA
100/100 EDGE
MU
100/100 EDGE
AMD
99/100 EDGE
MSFT
98/100 EDGE
AVGO
94/100 EDGE
QQQ
86/100 EDGE
META
81/100 EDGE
SPY
80/100 EDGE
Show every ticker we tested
GLD
81/100 NONE
GOOGL
68/100 NONE
AAPL
66/100 NONE
DIA
60/100 NONE
BA
60/100 NONE
XOM
60/100 NONE
SMCI
50/100 NONE
TSLA
45/100 NONE
COIN
44/100 NONE
IWM
37/100 NONE
UBER
35/100 NONE
AMZN
34/100 NONE
NFLX
31/100 NONE
SOFI
30/100 NONE
MARA
30/100 NONE
RIOT
30/100 NONE
JPM
26/100 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 (close is above SMA of close over 5 bars)
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 121.77% total return, but the ride was very lumpy. The worst stretch was a brutal -30.42% drawdown that lasted nearly two years, from May 2021 to March 2023, which is where the strategy hurt the most. The entry timing is a major strength here, as the real entries outperformed 96% of random entry runs, meaning the signal to buy when RSI(2) dips below 10 while price is above the 200-day average is doing the heavy lifting. The edge is also consistent, showing up as profitable in 3 out of 4 walk-forward test periods, so the result is not just from one lucky stretch. With 55 trades and a 65.45% win rate, the performance is spread across many trades rather than being driven by just a few big winners.

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