Does RSI(2) below 5 dip buy actually work on MU? We tested it
We ran RSI(2) below 5 dip buy on MU through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 83 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 overall, turning a 79.48% total return across 33 trades. The ride was lumpy, with a maximum drawdown of -26.10% that stretched from late April to early August 2024, which is where the strategy hurt the most. The result is not driven by just a few lucky trades, as the win rate is a solid 75.76% and the average trade returned 1.95%. The entry timing has a strong edge, beating 83% of random entry runs, so the entry signal itself is doing most of the work here. The edge also proved consistent, as the strategy was profitable in all four walk forward test periods.
Every verdict on this page comes from the same process. How we test.
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