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Strategy

Larry Connors RSI-2 Backtest

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Developed by Larry Connors, the 2-period Relative Strength Indicator (RSI) strategy is based on the principle that market prices return to a mean after significant highs or lows. A buy signal is generated when the 2-period RSI goes below 5, and the market price is above the 200-period MA. A long position is closed when the market price closes above the 5-period MA. In this backtest, we used the components of the Russell 3000 index as a stock universe. The condition "price ca sma(5)" in the formula for closing a position reads as "price crossed above the 5-period simple moving average".

Type of Positions Long
 Position Opening 
Criteria for Opening a Position: index(russell3000) and rsi(2) < 5
Order Execution Model: Close Prices
 Position Closing 
Criteria for Closing a Position: price ca sma(5)
Order Execution Model: Close Prices
 Backtest Parameters 
Initial Capital: $10,000
Capital at Risk: 5% per trade
Portfolio Max Size: 20 positions
Comm. per Trade: 0.05%  
Avg Bid-Ask Spread: 0.1%  
Period: 1/1/2026 - 12/31/2026
 Results 
Total Profit: $435   Total Trades: 979  
Capital Growth:4.35%   Profit Trades, % of Total:61%  
Profit Factor: [?] 1.04  Avg Trade Duration, days:4.25  
Payoff Ratio: [?] 0.67   Avg Profit per Trade:0.15%  
Max Drawdown:15%   Avg Profit per Day:0.035%  
Max Drawdown, $: 1,681   Avg Market Impact: [?]
Minor  
 
Restoration Factor: [?] 0.26   Overall Viability Score: [?]
4 / 10
 
Avg Annual Return: 4.35%   CAGR: [?]4.35%  
 Equity Graph 
 Performance 
Year S&P 500 Equity JanFeb MarAprMay JunJulAug SepOctNov Dec
2026 10.73 4.35 3.44 -3.24 -3.63 8.53 4.13 -2.84 6.98 -0.02 -4.63 -3.40
        
Performed Trades  
 Symbol Entry Date
Entry
Price, $
Exit Date
Exit
Price, $
Shares Profit, $  Exit On
Stop
Loss, $
Take
Profit, $
 MI [?]
 AIV 02/24/2026 2.91 02/25/2026 3.00 175 14.71  Close Signal  Minor 
 ACN 02/23/2026 195.49 02/26/2026 201.51 2 11.24  Close Signal  Minor 
 ADBE 02/23/2026 246.68 02/25/2026 257.81 2 21.24  Close Signal  Minor 
 BXC 02/20/2026 72.74 03/23/2026 49.23 7 -165.34  Close Signal  Minor 
 AGM 02/20/2026 145.55 02/25/2026 155.86 3 30.01  Close Signal  Minor 
 BCPC 02/20/2026 171.30 02/24/2026 178.56 3 20.72  Close Signal  Minor 
 BLDR 02/19/2026 111.42 03/17/2026 90.68 4 -83.73  Close Signal  Minor 
 BKD 02/19/2026 14.95 02/27/2026 15.30 34 10.87  Close Signal  Minor 
 CEVA 02/19/2026 19.67 02/24/2026 20.13 26 10.92  Close Signal  Minor 
 CBU 02/18/2026 62.46 03/16/2026 56.50 8 -48.61  Close Signal  Minor 
 CMC 02/18/2026 77.94 03/11/2026 65.89 6 -73.13  Close Signal  Minor 
 FC 02/18/2026 16.92 03/05/2026 12.88 30 -122.03  Close Signal  Minor 
 SLM 02/18/2026 23.49 02/26/2026 21.01 22 -55.51  Close Signal  Minor 
 ALKS 02/18/2026 32.02 02/24/2026 33.39 16 20.86  Close Signal  Minor 
 CMCO 02/18/2026 19.07 02/24/2026 19.04 27 -1.84  Close Signal  Minor 
 FLWS 02/18/2026 3.30 02/24/2026 3.31 156 0.53  Close Signal  Minor 
 GPC 02/18/2026 117.60 02/24/2026 115.57 4 -9.05  Close Signal  Minor 
 ITIC 02/18/2026 231.12 02/24/2026 223.62 2 -15.90  Close Signal  Minor 
 LPX 02/18/2026 85.25 02/24/2026 84.27 6 -6.89  Close Signal  Minor 
 MYGN 02/18/2026 4.37 02/24/2026 4.43 118 6.04  Close Signal  Minor 
 FELE 02/18/2026 90.40 02/23/2026 94.82 5 21.16  Close Signal  Minor 
 COCO 02/18/2026 50.06 02/20/2026 53.96 10 37.94  Close Signal  Minor 
 FFIN 02/18/2026 32.33 02/20/2026 32.68 15 4.27  Close Signal  Minor 
 KAI 02/18/2026 319.29 02/20/2026 338.66 1 18.70  Close Signal  Minor 
 CBSH 02/17/2026 52.20 02/19/2026 52.86 10 5.55  Close Signal  Minor 
 CHDN 02/17/2026 87.97 02/19/2026 92.21 5 20.29  Close Signal  Minor 
 CRK 02/17/2026 18.55 02/19/2026 19.85 28 35.31  Close Signal  Minor 
 ASH 02/17/2026 59.05 02/18/2026 62.15 8 23.82  Close Signal  Minor 
 CRMT 02/17/2026 20.98 02/18/2026 22.22 24 28.71  Close Signal  Minor 
 CASS 02/13/2026 44.14 02/25/2026 43.99 11 -2.62  Close Signal  Minor 
 AAPL 02/13/2026 255.32 02/18/2026 263.87 2 16.05  Close Signal  Minor 
 ACM 02/13/2026 87.14 02/18/2026 94.09 6 40.59  Close Signal  Minor 
 ASGN 02/13/2026 41.43 02/18/2026 43.12 12 19.26  Close Signal  Minor 
 AXP 02/13/2026 334.48 02/18/2026 343.14 1 7.98  Close Signal  Minor 
 AYI 02/13/2026 304.90 02/18/2026 312.77 1 7.25  Close Signal  Minor 
 ABM 02/12/2026 42.58 02/18/2026 44.19 12 18.27  Close Signal  Minor 
 ADSK 02/12/2026 223.49 02/18/2026 229.74 2 11.59  Close Signal  Minor 
 AMP 02/11/2026 482.67 02/18/2026 474.56 1 -9.06  Close Signal  Minor 
 AIZ 02/11/2026 213.73 02/17/2026 219.60 2 10.87  Close Signal  Minor 
 ACAD 02/10/2026 22.70 02/17/2026 22.95 23 4.70  Close Signal  Minor 
 HRB 02/10/2026 31.56 02/13/2026 30.03 16 -25.45  Close Signal  Minor 
 HUM 02/10/2026 179.58 02/13/2026 182.35 2 4.81  Close Signal  Minor 
 MCO 02/10/2026 416.18 02/13/2026 423.61 1 6.59  Close Signal  Minor 
 HSTM 02/10/2026 19.90 02/11/2026 20.07 26 3.38  Close Signal  Minor 
 A 02/09/2026 126.78 02/18/2026 126.22 4 -3.25  Close Signal  Minor 
 AJG 02/09/2026 215.83 02/17/2026 212.07 2 -8.37  Close Signal  Minor 
 HAE 02/09/2026 57.69 02/17/2026 58.59 9 7.05  Close Signal  Minor 
 ALX 02/09/2026 214.84 02/13/2026 221.52 2 12.48  Close Signal  Minor 
 FDS 02/09/2026 200.44 02/13/2026 202.97 2 4.25  Close Signal  Minor 
 ESCA 02/09/2026 13.77 02/12/2026 13.90 38 3.89  Close Signal  Minor 
 AWR 02/09/2026 68.73 02/10/2026 70.36 7 10.43  Close Signal  Minor 
 ASUR 02/06/2026 8.91 02/18/2026 7.57 60 -81.35  Close Signal  Minor 
 CCRN 02/06/2026 8.69 02/17/2026 8.22 61 -29.69  Close Signal  Minor 
 CRVL 02/06/2026 48.67 02/12/2026 47.27 11 -16.45  Close Signal  Minor 
 CLB 02/06/2026 18.52 02/11/2026 18.90 28 9.59  Close Signal  Minor 
 CNC 02/06/2026 38.46 02/10/2026 39.61 13 13.93  Close Signal  Minor 
 AMZN 02/05/2026 222.69 02/18/2026 204.79 2 -36.64  Close Signal  Minor 
 ACLS 02/05/2026 81.49 02/06/2026 86.08 6 26.52  Close Signal  Minor 
 BLKB 02/04/2026 47.85 02/09/2026 48.25 11 3.34  Close Signal  Minor 
 BRKR 02/04/2026 42.43 02/09/2026 41.97 12 -6.53  Close Signal  Minor 
 ADBE 02/03/2026 271.93 02/13/2026 263.97 1 -8.49  Close Signal  Minor 
 ACET 02/03/2026 7.70 02/09/2026 7.25 69 -32.07  Close Signal  Minor 
 ACIW 02/03/2026 39.52 02/06/2026 42.28 13 34.80  Close Signal  Minor 
 AKAM 02/03/2026 91.79 02/06/2026 95.08 5 15.51  Close Signal  Minor 
 AMKR 02/03/2026 46.02 02/06/2026 49.12 11 33.04  Close Signal  Minor 
 BFLY 02/02/2026 3.82 02/10/2026 3.41 139 -57.97  Close Signal  Minor 
 ALB 02/02/2026 163.56 02/09/2026 164.38 3 1.47  Close Signal  Minor 
 BA 02/02/2026 233.02 02/04/2026 235.95 2 4.92  Close Signal  Minor 
 BLDR 02/02/2026 113.27 02/03/2026 118.56 4 20.22  Close Signal  Minor 
 AMPL 01/30/2026 9.17 02/18/2026 7.18 57 -114.31  Close Signal  Minor 
 ADSK 01/30/2026 252.87 02/09/2026 242.53 2 -21.66  Close Signal  Minor 
 AMD 01/30/2026 236.73 02/09/2026 216.00 2 -42.34  Close Signal  Minor 
 ALNY 01/30/2026 338.06 02/03/2026 351.80 1 13.04  Close Signal  Minor 
 ADP 01/29/2026 240.58 02/18/2026 212.45 2 -57.14  Close Signal  Minor 
 ACN 01/29/2026 253.83 02/10/2026 234.04 2 -40.54  Close Signal  Minor 
 ATEC 01/29/2026 14.85 02/10/2026 13.90 36 -35.22  Close Signal  Minor 
 ALGN 01/29/2026 164.12 02/05/2026 175.62 3 33.46  Close Signal  Minor 
 ATRC 01/29/2026 36.95 02/03/2026 38.07 14 14.62  Close Signal  Minor 
 ANGO 01/29/2026 9.98 01/30/2026 10.36 53 19.05  Close Signal  Minor 
 AEO 01/27/2026 22.95 02/02/2026 24.13 23 26.04  Close Signal  Minor 
 BDN 01/27/2026 2.63 02/02/2026 2.60 203 -7.15  Close Signal  Minor 
 AVAV 01/26/2026 302.67 02/09/2026 274.35 1 -28.88  Close Signal  Minor 
 AGEN 01/26/2026 3.02 02/06/2026 2.94 177 -15.21  Close Signal  Minor 
 BBW 01/26/2026 59.48 02/03/2026 59.08 8 -4.15  Close Signal  Minor 
 BJRI 01/26/2026 42.12 01/30/2026 41.82 12 -4.61  Close Signal  Minor 
 BYD 01/23/2026 83.04 01/29/2026 83.33 6 0.74  Close Signal  Minor 
 EIG 01/23/2026 42.65 01/29/2026 43.68 12 11.32  Close Signal  Minor 
 AFL 01/23/2026 105.44 01/26/2026 107.26 5 8.03  Close Signal  Minor 
 KRC 01/22/2026 33.88 02/05/2026 32.65 15 -19.44  Close Signal  Minor 
 HAE 01/22/2026 70.02 02/04/2026 65.95 7 -29.43  Close Signal  Minor 
 DLTR 01/22/2026 126.79 02/03/2026 119.69 4 -29.37  Close Signal  Minor 
 HURN 01/22/2026 173.44 02/02/2026 172.37 3 -4.25  Close Signal  Minor 
 AKR 01/22/2026 19.60 01/29/2026 19.19 27 -12.11  Close Signal  Minor 
 EGP 01/22/2026 175.58 01/29/2026 176.90 3 2.90  Close Signal  Minor 
 FR 01/22/2026 55.78 01/29/2026 56.74 9 7.62  Close Signal  Minor 
 CPSS 01/22/2026 8.24 01/27/2026 8.46 64 13.00  Close Signal  Minor 
 KSS 01/22/2026 17.32 01/27/2026 17.36 30 0.16  Close Signal  Minor 
 EHTH 01/21/2026 3.48 02/23/2026 1.53 153 -298.97  Close Signal  Minor 
 CBZ 01/21/2026 44.97 01/30/2026 39.35 11 -62.72  Close Signal  Minor 
 BR 01/21/2026 203.09 01/26/2026 205.07 2 3.14  Close Signal  Minor 
979 trades
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Backtesting Results Disclaimer
Past hypothetical backtest results are neither an indicator nor a guarantee of future returns. Actual results may vary from the analysis. Hypothetical performance results have many inherent limitations and cannot fully account for market factors such as bid-ask spread, slippage, and commission costs. There are numerous other factors related to the markets, which cannot be fully accounted for in the backtesting algorithm, but all of which can adversely affect actual trading results.



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