Does RSI(2) below 5 dip buy actually work on QQQ? We tested it
We ran RSI(2) below 5 dip buy on QQQ through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 81 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 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.
Every verdict on this page comes from the same process. How we test.
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