Limit RSI Dip Buyer
Mean reversion · Equity ETFs · Daily · Limit order
The rules, in plain English
Instead of chasing, this strategy places a passive buy-limit order below the close when RSI is weak, hoping to be filled at a better price. It then waits for the dip to recover. In the published run it had no losing trades in sample, which is why its profit factor is shown as unlimited — treat that as a small-sample quirk, not a promise.
The published backtest
| Total return | +94.7% |
|---|---|
| CAGR (annual growth rate) | +2.70% |
| Sharpe ratio | 0.14 |
| Maximum drawdown (worst peak-to-trough fall) | -19.1% |
| Win rate | 100.0% |
| Profit factor | — |
| Risk grade (our shorthand, from the published figures) | C |
| Asset class | Equity ETFs |
| Style | Mean reversion |
| Timeframe | Daily · Limit order |
| Type | Orders |
| Profit factor note | Profit factor shown as ∞ (no losing trades in sample) on quants.md |
— means no figure was published for this strategy. Ungraded and workflow entries publish diagnostics rather than a graded portfolio backtest, so some metrics are not published for them.
Honest verdict
Modest
This one made money in its published backtest, but modestly for the risk taken — look at the Sharpe ratio and the worst drawdown together before forming any opinion.
Worst drawdown in the published test: -19.1% — at its lowest point, a follower of this test would have been down that much from the peak before any recovery.
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Attribution: strategy and published backtest results from the QuantJourney open-source library (Apache-2.0), via quants.md — published backtest results by QuantJourney, reproduced with attribution. Results are hypothetical backtest results based on historical data; they are not live trading results and do not guarantee future performance. Educational content only — not financial advice, and not a recommendation to buy, sell, or hold any security.