RSI indicator strategy

Idea

Buy if the RSI indicates the stock is oversold. Close the position when the RSI indicates the stock is overbought.

Read more on the RSI and the strategy on the Wikipedia website.

Parameters
Example   Test it!

Strategy

Buy Facebook (FB) when the standard RSI(14,30,70) indicates the stock is oversold. Close the position when the stock is overbought. Invest for the period of 3 years.

Simulation on a single period

Note: We quote the results for just the most recent 3-year period from 2016-02-25 to 2019-02-24. Review the simulation for other periods.

Key indicator Value Description
Annualized return 11.12% Compound annual return (CAGR) over the period
Max drawdown 0.00% Maximum loss relative to the initial value experienced over the period

Statistical simulation

Note: We simulate over all 3-year periods since Facebook's IPO in 2012.

Key indicator Value Description
Percentile 20% of annual return 11.02% 80% of the periods produced this annualized return (CAGR) or better
Percentile 20% of max drawdown -1.80% 80% of the periods experienced this max draw-down (relative to the initial investment) or better