Oversold Bounce: Live on Robinhood

How it trades

• Watches 9 large, liquid names: SPY, QQQ, IWM, DIA, NVDA, AAPL, MSFT, AMZN, META.
• Buys at the daily close after a sharp short-term drop (2-day RSI below 5). No trend filter.
• Up to 4 positions at once, $500 each, fractional shares, one per name. Long only, no leverage.
• Checks there is enough cash before every buy. Skips the signal if not.
• Skips buys on a company's earnings day and the trading day before.
• Fixed safety stop at 3× the 14-day average range (ATR) below entry. It never moves. Checked every 30 minutes during market hours.
• Sells on the first close above the 5-day average, or at the close of the 7th trading day, whichever comes first.

Backtest, not live results

Sep 2024 – Oct 2026. Four $500 slots. After costs.

Trades

125

Winners

78%

Net

+$786

Profit factor

3.20

Worst drawdown

$105

Buy-and-hold, same period

+$932

Last 6 months (out of sample)

30 trades, +$121, profit factor 1.84

Audit

MIXED. Lower risk than buy-and-hold, less total profit.

Costs modeled: about the greater of 1 cent per share or 0.02% of the trade. Robinhood charges no stock commission.