Strategy backtest

Buy the S&P 500 after a 2% drop

Buy at the close of any day the S&P 500 ETF falls 2% or more; sell at the close 5 trading days later.

Result from 2024-10-16 to 2026-10-15: +6.6% across 8 trades, 88% of them winners, against +32.5% for buying and holding the same asset. Maximum drawdown -9.1%. Long only, no fees or slippage — what did happen, not what will.