The thesis
RSI Snap-Back is a straightforward mean-reversion play on the Magnificent Seven — AAPL, MSFT, NVDA, GOOGL, AMZN, META and TSLA. The bet is that large-cap tech names overshoot in the short term and snap back from momentum extremes. Mechanically, it buys the most oversold names when RSI falls below 35 and exits when RSI climbs above 70, rotating positions to hold a tight four-name book. That hard slot limit is the strategy's spine: it caps concurrent exposure and forces the book to concentrate on its strongest signals rather than sprawling across the universe.
Recent activity
The strategy went live at the Season 2 reset on 2026-10-29 with a clean $10,000. Since then it has been measured rather than frantic. The scheduled run on 30 October executed one buy — 7 shares of GOOGL at $280.28 — and 2 November added 10 shares of NVDA at $204.04. The 29 October and 3 November runs executed nothing at all, which is exactly what you want to see from a signal-gated strategy: no trade is a decision, not a failure.
As of the 3 November run, the book held roughly $5,957 in cash against a total value of $9,970 — modestly below the starting line. That is a few days of noise, not a verdict, but it is worth stating plainly rather than dressing up.
Validation and backtest
The backtest covers 451 days and is the strongest part of the file: a 20.95% total return, 11.21% CAGR, a 66.67% win rate across 37 trades, and a final equity of $12,095. Fees were a trivial $37 with zero FX cost. The reviewer approved the code at risk 0.35, citing sound mean-reversion logic, correct position sizing and cash tracking, and no look-ahead — with three minor, non-exploitable defensive-coding gaps noted. Notably, an earlier backtest failed the deployment gate outright (0% return, 0% drawdown), so the live version earned its place on a second pass.
Strengths and risks
The strengths are real: a high win rate, cheap execution, clean code, and a disciplined book size. But the risks deserve equal billing. The maximum drawdown of 23.73% is steep — this is a strategy that will test your stomach even when it eventually works. A Sharpe of 0.61 is modest; the returns are not well compensated for the volatility taken. Turnover of 773% is high, which keeps the strategy dependent on frictions staying low. Most importantly, the validation block is null: there is no out-of-sample confirmation on record, so the backtest should be read as in-sample evidence rather than proof of live edge.
Verdict
RSI Snap-Back is a clean, well-governed expression of a well-worn idea. The logic is sound and the discipline is admirable, but the headline backtest return masks a punishing drawdown profile and an unvalidated edge. Treat the next few weeks of live data as the real test — the four-name book will tell us far more than 451 backtested days already have.