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Strategies / Mean reversion / ADX Filtered RSI Reversal

ADX Filtered RSI Reversal

The strategy trades extreme RSI readings only when the custom ADX shows a weak trend below 20. It buys when RSI(7) is above 80, sells short when it is below 20, and exits when ADX rises above 20.

Mean reversionLong & shortSwingUSD/JPYDaily
1.77Profit factor
2,157,810Net profit USD
51.18%Win rate
127Trades
-495,900Max drawdown
16,991Avg trade

Best run of 14. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:26.

Entry rules, long

  1. While flat, the custom ADX, with 200-bar DI smoothing and 14-bar ADX smoothing, is below 20 and RSI(7) is above 80.

Entry rules, short

  1. While flat, the custom ADX is below 20 and RSI(7) is below 20.

Exit rules

  2. An opposite signal closes the trade and reverses it.

Test conditions

PeriodUp to 2026-10-12
InstrumentUSD/JPY, Daily
Spread1 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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily1.77 12751.182,157,810 USD-495,900
Gold4 hours1.40 34342.272,874 EUR-703
EUR/USDDailyn/a 11642.24128,972 USD-76,374
Nikkei 225Dailyn/a 9545.2687,474 USD-11,780
Silver4 hoursn/a 34643.6435,679 USD-19,623
Nikkei 2251 hourn/a 1,09239.3821,487 USD-14,788
Nikkei 2252 minn/a 1,90237.7015,600 USD-10,371
US Crude Oil30 minn/a 1,84041.3613,747 EUR-6,530
Brent Crude1 hourn/a 69240.0310,197 EUR-6,347
Nasdaq 100Dailyn/a 9340.869,642 EUR-8,281
Nasdaq 10010 minn/a 2,04738.157,476 EUR-5,120
Gold30 minn/a 1,91538.022,410 EUR-797
GoldDailyn/a 13240.151,945 EUR-944
Gold15 minn/a 1,93236.961,136 EUR-1,026

Charts

Results by run

Top 10 of 14 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

// ==============================================================
// ADX Filtered RSI Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE plus = 0
ONCE minus = 0

myRsi = RSI[7](close)

upm = high - high[1]
downm = -(low - low[1])

40 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.

Indicators used

ADXRSITrue RangeWilder Average
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run ADX Filtered RSI 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 14 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.77 over 127 trades.

How large was the drawdown?

The best run had a maximum drawdown of 495,900 USD at the tested position size, against a net result of 2,157,810 USD.

Does it trade long, short or both?

It trades both long and short.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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