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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 RMD?

RSI 14: buy oversold (30/70) does not beat buy-and-hold on RMD: -8.3 points a year over 31 years.

Total return
×47
Buy and hold
×434
CAGR
13.1%
Sharpe
0.45
Max drawdown
-52.4%
Trades
71
Out of sample
partly
Years
31
1×10×100×497×19961999200220052008201120142017202020232026
StrategyRMD

Findings

  1. RSI 14: buy oversold (30/70) does not beat buy-and-hold on RMD: -8.3 points a year over 31 years.
  2. Against the S&P 500 over the same window: +2.3 points a year.
  3. Total return ×47 versus ×434 for buy-and-hold, with 71 trades.
  4. The result holds only partly out of sample.
  5. Maximum drawdown -52.4%.
  6. It beats in neither half of the history (split at 2011).
  7. It ranks #12 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 RMD 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 RMD → · Full page for RSI 14: buy oversold (30/70) →

How to cite

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

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