Mean reversion

Cumulative RSI

Larry Connors' refinement of the RSI-2 dip: adding up the last two days' 2-day RSI asks for a dip that has lasted, not a single bad day. In a long-term uptrend, a low total has often been followed by a bounce.

Yearly return, after costs+10.4%Nifty 500 +11.5% over the same years

Worst fall−50.9%Win rate65%Matches now45

How it works

The signal every rule true at the close

Close is above the 200-day moving average
The last two days' 2-day RSI add up to less than 35

The exit whichever comes first

2-day RSI closes above 65
Or after 10 trading days

Typical holdingAbout 3 to 8 days

An example from the backtestChennai Petroleum Corporation CHENNPETROThe rules were met at the close before 22 Sep 2026. The trade opened that morning and closed on 29 Sep 2026, 5 trading days later, +2.3% after costs. Exit: 2-day RSI rose above 65.

Stocks meeting the rules 45

At the close of 1 Oct 2026, among NSE's 500 most-traded stocks. A screen, not a recommendation: in the backtest, a trade opened at the next day's open.

Showing the 30 the strategy ranks highest, of 45.

Backtest

1 Jan 2016 to 1 Oct 2026: a 10-stock portfolio following these rules on NSE's 500 most-traded stocks at each date, after 0.2% costs on each side, against the Nifty 500 index.

Yearly return+10.4%Index +11.5%

Compound growth a year (CAGR).

Total return+188%Index +224%

Gain or loss over the whole test.

Worst fall−50.9%Index −38.3%

Largest drop from a high (max drawdown).

Win rate64.5%

Share of trades that closed with a gain.

Profit factor1.16

Rupees gained for every rupee lost.

Average trade+0.25%

Average result per trade, after costs.

Average gain · loss+2.9% · −4.6%

A typical winning and losing trade.

Days held4.5

Average trading days per trade.

Trades5,597

About 521 a year.

Sharpe ratio0.57

Return for each unit of ups and downs.

Time invested93%

Average share of the money in trades.

Best · worst trade+23% · −68%

The extremes, after costs.

₹1 lakh following the rules

1 Jan 2016 to 1 Oct 2026: ₹2.88 L against ₹3.24 L in the Nifty 500.

Cumulative RSINifty 500

Falls from the high

Worst in this period −50.9%

Each calendar year

Return in the year, after costs.

Cumulative RSINifty 500

How the 5,597 trades ended

Each trade's return after costs, grouped.

GainLoss

How sturdy is it?

The same rules, tested again with one thing changed. A result worth trusting holds up across these; a big swing means the headline figure depends on luck or on the exact setup.

Beat the Nifty 500 in 1 of 5 versions and in 1 of 2 halves of the test.

Version	Yearly return	Worst fall	Win rate	Profit factor	Trades
As published10 stocks at a time, 0.2% costs on each side	+10.4%	−50.9%	64.5%	1.16	5,597
With the market filterNew trades only while the Nifty 500 is above its 200-day average	+8.5%	−37.9%	63.7%	1.15	4,473
Costs doubled0.4% on each side, as slippage in thinner stocks can be	−10.4%	−73.7%	59.3%	0.92	5,597
5 stocks at a timeA bigger share of the money in each trade	+14.0%	−51.3%	65.1%	1.2	2,851
20 stocks at a timeA smaller share in each trade	+6.2%	−52.6%	63.4%	1.11	10,501

First half · 1 Jan 2016 to 21 May 2021

Strategy+8.1%/yr

Nifty 500+12.8%/yr

Behind the index by 4.7 points a year.

Second half · 21 May 2021 to 1 Oct 2026

Strategy+12.7%/yr

Nifty 500+10.3%/yr

Ahead of the index by 2.4 points a year.

Recent trades in the backtest

The last 12 trades the rules closed, with 10 still open.

Stock	Opened	Closed	Days	Return	Why it closed
Chennai Petroleum CorporationCHENNPETRO	22 Sep 2026	29 Sep 2026	5	+2.3%	2-day RSI rose above 65
Karur Vysya BankKARURVYSYA	15 Sep 2026	28 Sep 2026	9	−2.6%	2-day RSI rose above 65
Oil IndiaOIL	21 Sep 2026	25 Sep 2026	4	−0.3%	2-day RSI rose above 65
Rategain Travel TechnologiesRATEGAIN	23 Sep 2026	24 Sep 2026	1	+0.4%	2-day RSI rose above 65
Balrampur Chini MillsBALRAMCHIN	23 Sep 2026	24 Sep 2026	1	+1.7%	2-day RSI rose above 65
CupidCUPID	22 Sep 2026	24 Sep 2026	2	+9.1%	2-day RSI rose above 65
Ola Electric MobilityOLAELEC	21 Sep 2026	23 Sep 2026	2	+4.7%	2-day RSI rose above 65
Vodafone IdeaIDEA	21 Sep 2026	23 Sep 2026	2	+1.3%	2-day RSI rose above 65
Aditya InfotechCPPLUS	21 Sep 2026	23 Sep 2026	2	+9.4%	2-day RSI rose above 65
Solar Industries IndiaSOLARINDS	18 Sep 2026	23 Sep 2026	3	+5.9%	2-day RSI rose above 65
United SpiritsUNITDSPR	11 Sep 2026	22 Sep 2026	6	+0.2%	2-day RSI rose above 65
Dixon Technologies (India)DIXON	10 Sep 2026	22 Sep 2026	7	−3.9%	2-day RSI rose above 65

How the tests work

Universe. The 500 most-traded NSE stocks at each date, by six-month average traded value, re-ranked every month: 1,353 different stocks over the years, 131 of which no longer trade. Testing all of them, not only today's survivors, keeps the results honest.
Period. 1 Jan 2016 to 1 Oct 2026, after a year of history for the long averages, on NSE's own end-of-day files: prices, delivery and futures open interest.
Portfolio. 10 slots, each a tenth of the portfolio's value when a trade opens. A signal at a day's close opens at the next day's open; an exit rule met at a close closes the trade at the next open. When there are more signals than free slots, the strategy's own ranking decides.
Costs. 0.2% on each side of every trade (STT, stamp duty, exchange charges and slippage). Tax and DP charges are not included.
Market filter. Every strategy is also tested opening new trades only while the Nifty 500 closes above its 200-day average. At the last close it was below it.
Robustness. Each strategy is run again with costs doubled, with 5 and with 20 stocks at a time, and judged separately in each half of the test. A result that only holds in one setup is luck, not an edge.
Corporate actions. Splits, bonus issues and demergers are applied from NSE's corporate-actions list, and symbol changes are joined up, so none of them shows up as a gain or a loss.
What is left out. Dividends (as in the Nifty 500 price index it is measured against), taxes, and the chance that a large order moves a thinly traded price.

Swing Lab is a screen and a history lesson, not advice. RupeeVerse is not registered with SEBI as an investment adviser or research analyst. A stock meeting a strategy's rules is not a recommendation to trade it, and past results do not predict future ones. Do your own research.