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Finaxion Research · RSI 14: buy oversold (30/70) · single stocks · Recomputed 2026-09-10

Does RSI 14: buy oversold (30/70) work on ALL?

RSI 14: buy oversold (30/70) does not beat buy-and-hold on ALL: -11.0 points a year over 33 years.

Total return
20.9%
Buy and hold
×38
CAGR
0.6%
Sharpe
-0.03
Max drawdown
-74.8%
Trades
46
Out of sample
overfit
Years
33
1×10×19941997200020032006200920122015201820212024
StrategyALL

Findings

  1. RSI 14: buy oversold (30/70) does not beat buy-and-hold on ALL: -11.0 points a year over 33 years.
  2. Against the S&P 500 over the same window: -10.3 points a year.
  3. Total return +20.9% versus ×38 for buy-and-hold, with 46 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -74.8%.
  6. It beats in neither half of the history (split at 2010).
  7. It ranks #190 of 235 markets for this strategy by annual excess over the S&P 500.

Findings derived from the full panel. Each carries its number and its denominator; the computations are reproducible with artifact 4941ce415f47.

Exactly what was tested

RSI(14) crosses below 30 → entry. RSI(14) crosses above 70 → exit. Next-close execution.

How to read it

The verdict compares the strategy with buying and holding ALL over the same window, with round-trip costs per asset class. “Out of sample” is walk-forward: the rule is fit on one stretch and judged on the next. A result that beats in the full sample but not out of it is overfit. Full methodology in the protocol. How we test.

Open this backtest with its trades   Trades (CSV)

Every strategy on ALL → · Full page for RSI 14: buy oversold (30/70) →

How to cite

Finaxion Research (2026). Does RSI 14: buy oversold (30/70) work on ALL?. Daily backtest 1962-01-01–2026-08-31, artifact 4941ce415f47. https://finaxion.app/en/research/rsi-14-oversold/all

Not a recommendation. Past performance does not guarantee future results.