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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 V?

2-day RSI (the Connors rule) does not beat buy-and-hold on V: -7.2 points a year over 18 years.

Total return
876.9%
Buy and hold
×31
CAGR
13.2%
Sharpe
0.62
Max drawdown
-27.1%
Trades
426
Out of sample
—
Years
18
1×10×200920112013201520172019202120232025
StrategyV

Findings

  1. 2-day RSI (the Connors rule) does not beat buy-and-hold on V: -7.2 points a year over 18 years.
  2. Against the S&P 500 over the same window: +1.0 points a year.
  3. Total return +876.9% versus ×31 for buy-and-hold, with 426 trades.
  4. Maximum drawdown -27.1%.
  5. It beats in neither half of the history (split at 2017).
  6. It ranks #13 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 V 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 V → · Full page for 2-day RSI (the Connors rule) →

How to cite

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

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