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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 NRG?

2-day RSI (the Connors rule) does not beat buy-and-hold on NRG: -11.2 points a year over 23 years.

Total return
42.7%
Buy and hold
×15
CAGR
1.6%
Sharpe
-0.01
Max drawdown
-64.3%
Trades
508
Out of sample
overfit
Years
23
1×10×24×200420062008201020122014201620182020202220242026
StrategyNRG

Findings

  1. 2-day RSI (the Connors rule) does not beat buy-and-hold on NRG: -11.2 points a year over 23 years.
  2. Against the S&P 500 over the same window: -9.5 points a year.
  3. Total return +42.7% versus ×15 for buy-and-hold, with 508 trades.
  4. The result does not hold out of sample: it is overfit.
  5. Maximum drawdown -64.3%.
  6. It beats in neither half of the history (split at 2015).
  7. It ranks #145 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 NRG 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 NRG → · Full page for 2-day RSI (the Connors rule) →

How to cite

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

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