LearnBrokersAlpaca › RSI(2) Dip Snapback

RSI(2) Dip Snapback on Alpaca

Buy extreme 2-day RSI washouts under 10, exit as soon as RSI(2) recovers above 70. Deployed to your own Alpaca account — no code, your assets never leave the broker.

The short version: connect Alpaca once, deploy the RSI(2) snapback template with its own cash allocation, and DeployQuant runs the rules every session — entries, resting exits, and the journal that explains each decision. Median backtested CAGR across 59 ETFs: 4.4% (2021-01-04 → 2026-07-17).

Setup on Alpaca

  1. Connect Alpaca with your API keys — paper and live accounts are both supported.
  2. Validate any strategy against Alpaca paper first: same rules, simulated money, live data.
  3. Promote to the live account when paper behavior matches the backtest.
  4. Each deployed strategy runs in its own sleeve with independent cash.
  5. Guardrails check every order: price bands, notional caps, and a global pause.

The strategy

  1. WHEN the market opens · IF not invested AND RSI(2) < 10 · THEN buy with 98% of the sleeve
  2. WHEN the market opens · IF invested AND RSI(2) > 70 · THEN sell the whole position

Good for: liquid index ETFs with strong long-term drift; turnover is high so per-trade edges are small.
Watch out: high trade counts make results sensitive to execution quality; a crash that keeps crashing will hand this template several losing entries in a row.

Strongest backtests for this strategy

ETFCAGRmax DDtrades
CLSE 6.3793117942596455e+31% −2344959.5%22
SOXL 41.8% −58.5%160
TQQQ 39.2% −43.3%158
TECL 29.4% −51.0%152
QLD 26.8% −29.5%157
SSO 25.7% −25.2%164
SPUU 22.7% −31.2%161
FAS 19.3% −43.4%153

Top-8 by CAGR shown of 59 tested — hindsight selection; see the full table including the losers.

Run RSI(2) snapback on Alpaca yourself — free →

Build it from blocks (or type it in English), backtest it on 5.5 years of minute data in seconds, tweak any parameter, then paper trade it on live data. No card, no broker needed to start.

Frequently asked questions

How do I automate RSI(2) snapback on Alpaca?

Connect Alpaca to DeployQuant (trade & read permissions only), pick the RSI(2) Dip Snapback template or describe it in English, backtest it on your chosen ETF, allocate cash, and confirm live trading. The strategy then runs every session in its own sleeve inside your Alpaca account.

How often does RSI(2) trade?

Far more than RSI(14) — dozens of round trips per year on a volatile ETF. The backtest table on each page shows the exact count over the test window.

Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.