LearnComparisons › momentum breakout vs RSI mean reversion

20-Day Momentum + Trailing Stop vs RSI(14) Mean Reversion

Two rule sets, 59 ETFs, one engine and window — a genuinely like-for-like comparison.

Head-to-head: RSI mean reversion won on 30 of 59 ETFs by CAGR. Median CAGR — momentum breakout: 0.0% · RSI mean reversion: 2.5%. Median max drawdown — 20.1% vs 24.7%.
momentum breakoutRSI mean reversion
Median CAGR (59 ETFs)0.0%2.5%
Median max drawdown−20.1%−24.7%
ETFs won (by CAGR)2930
Stylehigh-momentum assets where trends extend — semiconductor and leveraged tech ETFs show the archetypeassets that trend up over time but overshoot on the way — broad index ETFs are the classic home

Where the gap was biggest

ETFmomentum breakoutRSI mean reversiongap
SOXS 1.3%−38.2% 39.5%
EEV −14.8%11.2% 26.0%
FAS 4.0%26.5% 22.4%
SOXL 23.9%4.0% 20.0%
QLD 21.7%8.3% 13.4%
VXZ −17.9%−6.5% 11.4%
TMF −11.5%−22.7% 11.1%
SPUU 16.7%5.6% 11.1%
QID −3.6%−14.5% 10.9%
VIXM −16.4%−5.7% 10.8%
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Frequently asked questions

Which is better: momentum breakout or RSI mean reversion?

On this 2021-01-04–2026-07-17 window, RSI mean reversion produced the higher CAGR on 30 of 59 ETFs. Median CAGR: momentum breakout 0.0% vs RSI mean reversion 2.5%; median max drawdown: 20.1% vs 24.7%. "Better" depends on the asset and what you optimize — the per-ETF table shows where each wins.

Dig deeper

20-Day Momentum + Trailing Stoprules + all 59 ETF results RSI(14) Mean Reversionrules + all 59 ETF results

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.