Strategies / Mean reversion / Bollinger ADX Range Reversal

Bollinger ADX Range Reversal

When ADX is below 20, buys when close crosses above the lower Bollinger Band and sells short when it crosses below the upper band, both using a 20-period SMA with 2 standard deviations. Any position closes when ADX rises above 20.

Mean reversionLong & shortSwingDow Jones1 hour

n/aProfit factor

8,886Net profit EUR

50.53%Win rate

748Trades

-7,930Max drawdown

11.88Avg trade

Best run of 4. Dow Jones, 1 hour, spread 3, from run sweeps:2026-10-11-DOW30-1h-opt.tsv:7.

Entry rules, long

ADX is below 20.

Entry rules, short

ADX is below 20.

Exit rules

An opposite entry signal while in a position reverses it.

Test conditions

Period	Up to 2026-10-11
Instrument	Dow Jones, 1 hour
Spread	3 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	2026-10-11

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Dow JonesBest run	1 hour	n/a	748	50.53	8,886 EUR	-7,930
Silver	Daily	n/a	252	47.62	15,013 USD	-10,225
Dow Jones	4 hours	n/a	192	48.96	12,361 EUR	-4,752
DAX 40	4 hours	n/a	562	49.29	8,977 EUR	-3,086

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Bollinger ADX Range Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

up = high - high[1]
down = low[1] - low
plusdm = 0

41 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

ADXDMIBollinger BandsSMAStandard DeviationTrue RangeWilder Average

Read this firstKnown weaknesses3 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 7,930 EUR is large next to the net profit of 8,886 EUR.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Bollinger ADX Range 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 4 market and timeframe combinations. The best run by trade count was Dow Jones, 1 hour, with 748 trades.

How large was the drawdown?

The best run had a maximum drawdown of 7,930 EUR at the tested position size, against a net result of 8,886 EUR.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Turtle Trade

Best run on the same market, Dow Jones.

2.42 PF · 6,324 trades

ATR Band

Also a mean reversion strategy.

10.31 PF · 53 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