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Strategies / Mean reversion / 3 Down Closes Reversal

3 Down Closes Reversal

It buys after 3 consecutive lower closes when the close sits near the low of the bar's range, and closes the trade once it has been open for 3 or more bars. Only one position is open at a time.

Mean reversionLong onlySwingUSD/JPYDaily
1.65Profit factor
849Net profit USD
59.46%Win rate
37Trades
-376Max drawdown
22.94Avg trade

Best run of 1. USD/JPY, Daily, spread 1.4, from run pf:2026-10-10-USDJPY-D.tsv:25.

Entry rules, long

Exit rules

  1. The trade closes once it has been open for 3 or more bars.

Test conditions

PeriodUp to 2026-10-10
InstrumentUSD/JPY, Daily
Spread1.4 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-10

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily1.65 3759.46849 USD-376

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// 3 Down Closes Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false
ONCE capital = 10000

21 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. 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".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.
Read this firstKnown weaknesses3 points
  • The best run has only 37 trades, which is a small sample to judge it on.
  • It was only tested on USD/JPY, so there is no evidence from other markets.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run 3 Down Closes 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 one combination, USD/JPY, Daily, with a profit factor of 1.65 over 37 trades.

How large was the drawdown?

The best run had a maximum drawdown of 376 USD at the tested position size, against a net result of 849 USD.

Does it trade long, short or both?

It only takes long trades.

Related

Strategies like this one

Trend Surfer

Best run on the same market, USD/JPY.

1.04 PF · 10,813 trades

Cumulative RSI Long and Short

Also a mean reversion strategy.

1.64 PF · 461 trades

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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.comStatsDocs