Strategies / Trend / Action Zone Trend Follow

Action Zone Trend Follow

Buys on the first green Action Zone bar, when the 12-period EMA is above the 26-period EMA of a smoothed price and that price is above the fast EMA. Closes the long on the first red bar.

TrendLong onlySwingGoldDaily

2.20Profit factor

3,448Net profit EUR

33.18%Win rate

214Trades

-811Max drawdown

16.11Avg trade

Best run of 27. Gold, Daily, spread 0.6, from run pf:2026-10-12-GOLD-D.tsv:8.

Entry rules, long

Smoothed price is a 2-period EMA of the average of open, high, low and close.
The condition was not true on the previous bar, so only the first bar of this state triggers entry.

Exit rules

Only the first bar of that state closes the long.
No stop loss or profit target is set.

Test conditions

Period	Up to 2026-10-12
Instrument	Gold, Daily
Spread	0.6 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	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
GoldBest run	Daily	2.20	214	33.18	3,448 EUR	-811
S&P 500	Daily	2.07	238	35.71	4,420 EUR	-728
Nasdaq 100	Daily	2.06	176	43.18	18,103 EUR	-4,448
Dow Jones	Daily	1.85	234	35.90	26,034 EUR	-5,429
DAX 40	Daily	1.72	227	39.65	16,255 EUR	-3,076
USD/JPY	Daily	n/a	198	37.88	1,338,470 USD	-395,340
USD/JPY	30 min	n/a	2,993	32.81	676,340 USD	-174,270
USD/JPY	1 hour	n/a	2,120	33.77	595,280 USD	-207,320
USD/JPY	10 min	n/a	3,169	30.77	277,290 USD	-157,670
USD/JPY	15 min	n/a	3,158	30.43	237,590 USD	-151,530
EUR/USD	Daily	n/a	186	37.63	80,976 USD	-44,845
Nikkei 225	Daily	n/a	180	35.56	38,626 USD	-11,818
Nikkei 225	4 hours	n/a	421	36.10	21,444 USD	-13,998
DAX 40	30 min	n/a	3,042	33.60	12,284 EUR	-3,489
US Crude Oil	Daily	n/a	178	37.64	11,263 EUR	-7,726
Dow Jones	4 hours	n/a	168	35.71	10,254 EUR	-5,455
Nasdaq 100	30 min	n/a	3,036	33.37	10,040 EUR	-2,963
Nasdaq 100	4 hours	n/a	516	36.24	9,800 EUR	-5,557
Brent Crude	Daily	n/a	78	34.62	9,298 EUR	-8,903
Dow Jones	30 min	n/a	1,248	33.89	9,210 EUR	-9,055
Nasdaq 100	1 hour	n/a	1,816	34.47	8,236 EUR	-4,569
DAX 40	1 hour	n/a	1,736	34.27	7,377 EUR	-5,139
DAX 40	4 hours	n/a	513	33.53	4,739 EUR	-3,986
Gold	1 hour	n/a	1,828	32.99	3,207 EUR	-848
Gold	4 hours	n/a	468	35.47	2,978 EUR	-1,174
S&P 500	4 hours	n/a	507	38.46	2,684 EUR	-961
Gold	30 min	n/a	3,104	31.83	2,150 EUR	-889

Charts

Results by run

Top 10 of 27 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Action Zone Trend Follow
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ap = ExponentialAverage[2](TotalPrice)
fast = ExponentialAverage[12](ap)
slow = ExponentialAverage[26](ap)

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

EMA

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 Action Zone Trend Follow 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 27 market and timeframe combinations. The best run was Gold, Daily, with a profit factor of 2.20 over 214 trades.

How large was the drawdown?

The best run had a maximum drawdown of 811 EUR at the tested position size, against a net result of 3,448 EUR.

Does it trade long, short or both?

It only takes long trades.

Reversal Pattern With Chaikin Volatility

Uses the same indicator.

2.26 PF · 6,872 trades

CCI Breakout

Best run on the same market, Gold.

1.08 PF · 6,065 trades

ADX Directional Momentum Long

Also a trend strategy.

2.20 PF · 223 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.com Stats Docs