RSI Oversold Bounce

Buys RSI(14) dips below 30 and exits on recovery above 60. The classic mean-reversion starter, kept honest with a tight stop.

By STLab · Published 2026-06-12 · CC-BY-SA-4.0

Reliability

Likely unreliable — from 9 trades, fewer than the 30 a result needs to mean much.

Backtest result

Return+9.6%
Sharpe0.39
Max drawdown2.4%
Profit factor2.44
Win rate66.7%
Trades9

Run on AAPL 1h · 6m · 853 bars · data from yahoo. Frozen at publish time, captured 2026-07-15.

Strategy code

import stlab

rsi = stlab.indicators.rsi(stlab.candles.close, period=14)

stlab.signal.long_when(rsi < 30)
stlab.signal.exit_when(rsi > 60)

stlab.position.size(percent=100)
stlab.position.stop_loss(percent=2)
stlab.position.take_profit(percent=6)

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