Strategies / Momentum / 18 Bar Momentum Stop Reversal

18 Bar Momentum Stop Reversal

The strategy holds a long while 18 bar momentum is positive and rising, and a short while it is negative and falling. Each trade has a fixed stop 8% from a long entry or 7% from a short entry.

MomentumLong & shortSwingUSD/JPYDaily

1.35Profit factor

3,171,440Net profit USD

34.67%Win rate

1,324Trades

-441,300Max drawdown

2,395Avg trade

Best run of 6. USD/JPY, Daily, spread 1, from run pf:2026-10-11-USDJPY-D.tsv:5.

Entry rules, long

The momentum is higher than on the previous bar.
Signals are evaluated only after bar 25.

Entry rules, short

The momentum is lower than on the previous bar.
Signals are evaluated only after bar 25.

Exit rules

The long stops out at a price 8% below the entry price.
The short stops out at a price 7% above the entry price.

Test conditions

Period	Up to 2026-10-11
Instrument	USD/JPY, Daily
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-11

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	1.35	1,324	34.67	3,171,440 USD	-441,300
USD/JPY	1 hour	n/a	14,717	30.79	613,870 USD	-434,400
EUR/USD	Daily	n/a	1,328	34.49	114,054 USD	-81,882
Brent Crude	Daily	n/a	555	34.05	16,250 EUR	-8,640
Nasdaq 100	Daily	n/a	1,082	31.70	13,456 EUR	-7,322
Gold	Daily	n/a	1,437	31.66	2,180 EUR	-995

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// 18 Bar Momentum Stop Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

mom = close - close[18]
momchg = mom - mom[1]

14 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Momentum

Read this firstKnown weaknesses2 points

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run 18 Bar Momentum Stop Reversal in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 6 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.35 over 1,324 trades.

How large was the drawdown?

The best run had a maximum drawdown of 441,300 USD at the tested position size, against a net result of 3,171,440 USD.

Does it trade long, short or both?

It trades both long and short.

ADX Momentum Trend Long

Uses the same indicator.

1.17 PF · 1,654 trades

Trend Surfer

Best run on the same market, USD/JPY.

1.04 PF · 10,813 trades

Volume Spike MACD Direction Trade

Also a momentum strategy.

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.com Stats Docs