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Finaxion Research · 2-day RSI (the Connors rule) · single stocks · Recomputed 2026-09-10

Does 2-day RSI (the Connors rule) work on IBKR?

2-day RSI (the Connors rule) does not beat buy-and-hold on IBKR: -9.2 points a year over 19 years.

Total return
223.2%
Buy and hold
×16
CAGR
6.3%
Sharpe
0.20
Max drawdown
-47.1%
Trades
450
Out of sample
—
Years
19
1×10×16×2008201020122014201620182020202220242026
StrategyIBKR

Findings

  1. 2-day RSI (the Connors rule) does not beat buy-and-hold on IBKR: -9.2 points a year over 19 years.
  2. Against the S&P 500 over the same window: -4.5 points a year.
  3. Total return +223.2% versus ×16 for buy-and-hold, with 450 trades.
  4. Maximum drawdown -47.1%.
  5. It beat before 2016 and stopped afterwards.
  6. It ranks #54 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 c0e771fe25fb.

Exactly what was tested

RSI(2) crosses below 10 → entry. RSI(2) crosses above 65 → exit. Next-close execution. No trend filter (we test the rule as it circulates).

How to read it

The verdict compares the strategy with buying and holding IBKR 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 IBKR → · Full page for 2-day RSI (the Connors rule) →

How to cite

Finaxion Research (2026). Does 2-day RSI (the Connors rule) work on IBKR?. Daily backtest 1962-01-01–2026-08-31, artifact c0e771fe25fb. https://finaxion.app/en/research/rsi-2-connors/ibkr

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