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Strategies / Mean reversion / Band Width Filtered Lower Band Bounce

Band Width Filtered Lower Band Bounce

The strategy buys when the close crosses above the lower 16-bar band while band width is between 20 and 50. It sells when the high crosses the upper band or the close falls below the lower band, or at 8% profit.

Mean reversionLong onlySwingDAX 401 hour
1.73Profit factor
11,346Net profit EUR
61.46%Win rate
301Trades
-2,149Max drawdown
37.69Avg trade

Best run of 28. DAX 40, 1 hour, spread 3, from run pf:2026-10-12-DAX40-1h.tsv:1.

Entry rules, long

  1. When flat, the close crosses above the lower band (16-bar SMA minus 3 standard deviations) with band width between 20 and 50.

Exit rules

  2. A profit target closes the trade at 8% above the fill price.

Test conditions

PeriodUp to 2026-10-12
InstrumentDAX 40, 1 hour
Spread3 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
DAX 40Best run1 hour1.73 30161.4611,346 EUR-2,149
Silver1 hourn/a 42655.8718,396 USD-7,207
Silver3 minn/a 10469.2317,639 USD-4,864
Nikkei 2251 hourn/a 19557.4414,665 USD-7,670
Nikkei 22530 minn/a 25058.4012,663 USD-7,111
Nasdaq 1004 hoursn/a 9472.3410,169 EUR-2,206
Silver2 minn/a 8765.529,083 USD-5,770
Nikkei 2254 hoursn/a 4870.838,730 USD-7,668
Nasdaq 1001 hourn/a 42353.907,625 EUR-2,488
Silver15 minn/a 28056.437,408 USD-5,522
Nasdaq 10030 minn/a 29055.176,810 EUR-3,956
Dow JonesDailyn/a 785.715,939 EUR-2,426
Dow Jones1 hourn/a 9758.765,728 EUR-3,967
DAX 4030 minn/a 23756.544,583 EUR-1,791
FTSE 1001 hourn/a 16565.454,001 EUR-1,468
FTSE 1004 hoursn/a 5068.002,333 EUR-1,196
Nikkei 2252 minn/a 1275.002,315 USD-1,450
FTSE 10030 minn/a 11464.041,434 EUR-997
S&P 5004 hoursn/a 8568.241,430 EUR-1,198
EUR/USD15 minn/a 560.001,172 USD-859
S&P 5001 hourn/a 22950.661,123 EUR-785
EUR/USD5 minn/a 2100.001,018 USD-511
Nasdaq 100Dailyn/a 2100.00615 EUR-127
GBP/USD30 minn/a 2259.09539 USD-384
FTSE 10015 minn/a 2762.96534 EUR-452
FTSE 10010 minn/a 862.50465 EUR-429
GBP/USD15 minn/a 862.50387 USD-196
SilverDailyn/a 1100.0085.00 USD-10.00

Charts

Results by run

Top 10 of 28 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Band Width Filtered Lower Band Bounce
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[16](close)
dev = 3 * STD[16](close)
upper = basis + dev
lower = basis - dev
bbw = (upper - lower) / basis * 1000

13 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 BandsSMAStandard Deviation
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 Band Width Filtered Lower Band Bounce 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 28 market and timeframe combinations. The best run was DAX 40, 1 hour, with a profit factor of 1.73 over 301 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,149 EUR at the tested position size, against a net result of 11,346 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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RSI(2) Trend Filter

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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