STOCKS · STRATEGY TEST
Does buying the dip work on GOOGL?
Buy when RSI drops below 30 — the textbook “oversold” signal — and hold for 20 trading days.
Holding came out ahead
14.98%
buying the dip per year
24.44%
Buy & hold per year
-9.46%
Difference
rule vs held, over 9.2 years
24%
Worst drawdown
holding fell 44%
Holding GOOGL came out ahead of buying the dip over 9.2 years. Across the last 9.2 years of real prices, simply buying and holding Alphabet made 9.46 percentage points a year more than buying the dip (24.44% versus 14.98%). The rule did give a gentler ride: its worst fall was 24.0% against 44.3% for holding — a smoother path, paid for with some of the return.
Every rule on GOOGL, ranked
Buy and hold · benchmark24.44%
647% total · worst drawdown 44.3% · in market 100%
Golden cross (50/200)20.48%
455% total · worst drawdown 30.9% · in market 78%
200-day moving average timing16.42%
305% total · worst drawdown 29.7% · in market 77%
Buy the dip (RSI < 30, hold 20d)14.98%
261% total · worst drawdown 24.0% · in market 28%
Sell in May (hold Nov–Apr)10.23%
145% total · worst drawdown 33.2% · in market 48%
the last 9.2 years · 2,312 trading days · $46.174 → $344.98
How to read this
One asset over one window is a single data point, not a law. A rule that comes out ahead on GOOGL may trail holding on the next ticker you try — which is exactly why the free tester exists: change the asset and see whether the edge survives. When it evaporates on a different market, it was fitted to this one.
Note the drawdown column as much as the return. Most timing rules earn less than holding but fall less in a crash, and whether that trade is worth it depends entirely on whether you would actually have held through the worst of it.
Method
All strategies are measured from the same starting bar so the comparison is like-for-like. Signals are read from the previous close and the next day's return is applied — no lookahead. Prices are dividend-adjusted so buy-and-hold is not handicapped. 0.05% cost per switch. No leverage, no shorting.
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Vorrik Research publishes tests of publicly discussed trading strategies using public market data. Where a test was also run with our own money, the article says so. It is factual reporting of what happened in historical and past live tests — not investment advice, and not a recommendation to buy or sell anything. Past results never predict future results.