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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 COF?

RSI 14: buy oversold (30/70) does not beat buy-and-hold on COF: -1.2 points a year over 32 years.

Total return
×42
Buy and hold
×58
CAGR
12.5%
Sharpe
0.40
Max drawdown
-69.8%
Trades
60
Out of sample
partly
Years
32
1×10×61×19951998200120042007201020132016201920222025
StrategyCOF

Findings

  1. RSI 14: buy oversold (30/70) does not beat buy-and-hold on COF: -1.2 points a year over 32 years.
  2. Against the S&P 500 over the same window: +1.4 points a year.
  3. Total return ×42 versus ×58 for buy-and-hold, with 60 trades.
  4. The result holds only partly out of sample.
  5. Maximum drawdown -69.8%.
  6. It beat before 2010 and stopped afterwards.
  7. It ranks #17 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 COF 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 COF → · Full page for RSI 14: buy oversold (30/70) →

How to cite

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

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