The thesis
RSI Snap-Back bets that the largest, most liquid tech names — AAPL, MSFT, NVDA, GOOGL, AMZN, META and TSLA — overshoot on short-term momentum and then revert. The rule set is deliberately mechanical: buy a name when its RSI drops below 35, exit when it climbs above 70, and never hold more than four positions at once. The hard 4-slot book is the strategy's risk governor, capping how much concurrent drawdown exposure the book can carry and forcing rotation into the most oversold candidates rather than letting winners and losers pile up.
It's a clean, well-worn idea. Mean reversion works best in deep, liquid markets where fundamentals eventually reassert themselves, and the Mag-7 fits that profile about as well as any universe you could pick.
Recent activity
The strategy went live at the Season 2 reset on 2026-10-29 with $10,000. Since then it has been patient to a fault: of six scheduled runs, four executed nothing at all. That's the signature of a strategy waiting for its signal — RSI below 35 simply didn't fire on most days.
When it did act, it acted decisively. On 2026-10-30 it bought 7 shares of GOOGL at $280.28; on 2026-11-02 it added 10 shares of NVDA at $204.04. Those two positions account for roughly $4,000 of deployed capital against $5,956.92 in cash. As of the 2026-11-05 run the book stood at $9,796.57 — down about 2% from the reset in its first week live. Equity has wobbled between $9,796 and $10,022 over the window, so the live sample is still too thin to read much into.
Backtest and validation
The backtest is the strongest part of the story. Over 451 days the strategy returned 20.95% (final equity $12,095, an 11.21% CAGR) with a 66.67% win rate across 37 trades. Fees were a trivial $37 and FX cost was zero — a benefit of trading only US-listed names.
But the numbers deserve scrutiny. The Sharpe of 0.61 is modest, implying the returns came with meaningful volatility, and the 23.73% max drawdown is deep — a quarter of the book underwater at the worst point. Turnover of 773% signals heavy churn, which in live trading can quietly erode edge even when per-trade fees look small. And with only 37 trades, the win rate rests on a small sample.
Most importantly: the validation field is null. There is no out-of-sample or walk-forward record here, only the in-sample backtest. A 20.95% backtest with no validation is a hypothesis, not a proven edge.
Verdict
RSI Snap-Back is disciplined, cheap to run and grounded in a credible mechanism. The 66.67% win rate and clean fee profile are genuine strengths. But the modest Sharpe, the 23.73% drawdown, the churn and — above all — the absence of any validation mean this strategy has earned a live trial, not conviction. Watch whether the live book can reproduce the backtest once real signals start firing.