Join waitlist
The books... not free though
10 Strategier Som Slår BörsenSvenska10 Strategier Som Slår Börsen10 Strategies That Beat the MarketEnglish10 Strategies That Beat the MarketProRealTime Coding Made SimpleEnglishProRealTime Coding Made Simple
600+StatisticsMarket statistics and edges1,327StrategiesBacktested strategy library18Research papersThe study behind the algos301DocsProBuilder coding reference27Algo development programCourses and lessons24Everything here feeds the 24 algosSee the algos
Strategies / Mean reversion / Band Break Oversold Pullback

Band Break Oversold Pullback

Buys a deep dip after repeated closes below the lower Bollinger Band when several oversold readings line up. Sells when price crosses under the middle or upper band, with a 3.5% stop loss.

Mean reversionLong onlyIntradaySilver30 min
n/aProfit factor
2,799Net profit USD
50.00%Win rate
12Trades
-1,866Max drawdown
233Avg trade

Best run of 24. Silver, 30 min, spread 2, from run sweeps:2026-10-04-SILVER-30m-opt.tsv:26.

Entry rules, long

  2. StochRSI fast %K (RSI 15, 20-bar stochastic) is below 20, and the 20-bar money flow ratio is at or below -0.1
  3. The 20-bar Bollinger Band width is above 0.025 of the middle band
  4. The close crossed under the lower band more than 1 time in the last 10 bars
  5. The close is below 0.99 times the lower band

Exit rules

  2. Or the close crosses under the upper Bollinger Band (20 periods, 2 standard deviations)
  3. A stop loss sits 3.5% below the entry price

Test conditions

PeriodUp to 2026-10-04
InstrumentSilver, 30 minutes
Spread2 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 tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run30 minn/a 1250.002,799 USD-1,866
USD/JPY4 hoursn/a 1100.0041,800 USD-16,700
USD/JPY1 hourn/a 2100.0033,300 USD-14,350
USD/JPY30 minn/a 1100.0016,000 USD-3,850
Nikkei 2251 hourn/a 250.002,182 USD-1,218
Brent CrudeDailyn/a 862.502,090 EUR-362
Nikkei 22515 minn/a 1100.001,495 USD-210
Nasdaq 1001 hourn/a 475.001,476 EUR-440
DAX 40Dailyn/a 250.001,224 EUR-625
GBP/USD4 hoursn/a 2100.001,173 USD-341
Nasdaq 10030 minn/a 3100.001,027 EUR-440
Brent Crude5 minn/a 650.00967 EUR-637
FTSE 100Dailyn/a 366.67920 EUR-295
US Crude OilDailyn/a 560.00899 EUR-601
Nikkei 225Dailyn/a 1100.00831 USD-678
Nikkei 22530 minn/a 1100.00765 USD-187
Brent Crude3 minn/a 560.00632 EUR-377
Brent Crude1 minn/a 2100.00362 EUR-98.50
DAX 4015 minn/a 1100.00157 EUR-69.50
Dow Jones15 minn/a 1100.00151 EUR-142
Nasdaq 10015 minn/a 1100.00108 EUR-42.70
Gold2 minn/a 1100.00104 EUR-67.80
FTSE 10010 minn/a 1100.0083.50 EUR-62.80
S&P 50015 minn/a 1100.0025.25 EUR-14.50

Charts

Results by run

Top 10 of 24 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Band Break Oversold Pullback
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

mid = Average[20](close)
sd = STD[20](close) * SQRT(20 / 19)
up = mid + 2 * sd
myLow = mid - 2 * sd
width = (up - myLow) / mid

81 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

Bollinger BandsCCIRSIStochasticStandard DeviationSMAVolume
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The best run has only 12 trades, which is a small sample to judge it on.
  • The maximum drawdown of 1,866 USD is large next to the net profit of 2,798 USD.

Questions

About this strategy

Can I run Band Break Oversold Pullback 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 24 market and timeframe combinations. The best run by trade count was Silver, 30 minutes, with 12 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,866 USD at the tested position size, against a net result of 2,798 USD.

Does it trade long, short or both?

It only takes long trades.

Related

Strategies like this one

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 trades

ATR Band

Also a mean reversion strategy.

10.31 PF · 53 trades

Get the full rules, the complete code and the ProRealAlgos portfolio as a member.

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