The books... not free though
The strategy buys when the close falls below the previous lower 40-period Bollinger Band (2 standard deviations) after a large move down. It exits at a 5% stop or a 1.25% profit target.
Best run of 22. DAX 40, 4 hours, spread 3, from run sweeps:2026-10-04-DAX40-4h-opt.tsv:80.
| Period | Up to 2026-10-04 |
| Instrument | DAX 40, 4 hours |
| 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 | 2026-10-04 |
Every run
| Market | Timeframe | PF | Trades | Win % | Net | Max DD |
|---|---|---|---|---|---|---|
| DAX 40Best run | 4 hours | n/a | 21 | 85.71 | 1,411 EUR | -624 |
| Silver | 15 min | n/a | 18 | 83.33 | 3,475 USD | -2,523 |
| Silver | 2 min | n/a | 6 | 100.00 | 3,017 USD | -1,052 |
| Nikkei 225 | 4 hours | n/a | 14 | 92.86 | 2,305 USD | -1,345 |
| Nikkei 225 | 5 min | n/a | 4 | 100.00 | 1,811 USD | -1,338 |
| Nikkei 225 | 3 min | n/a | 3 | 100.00 | 1,743 USD | -1,361 |
| Nikkei 225 | 30 min | n/a | 7 | 100.00 | 1,613 USD | -140 |
| Nikkei 225 | 10 min | n/a | 2 | 100.00 | 1,034 USD | -1,023 |
| DAX 40 | 1 hour | n/a | 8 | 100.00 | 865 EUR | -361 |
| Brent Crude | 2 min | n/a | 4 | 100.00 | 480 EUR | -156 |
| Dow Jones | 15 min | n/a | 2 | 100.00 | 479 EUR | -1.50 |
| Dow Jones | 3 min | n/a | 1 | 100.00 | 458 EUR | -0.00 |
| FTSE 100 | 1 hour | n/a | 8 | 100.00 | 440 EUR | -109 |
| Nasdaq 100 | 15 min | n/a | 4 | 100.00 | 355 EUR | -305 |
| Nasdaq 100 | 10 min | n/a | 2 | 100.00 | 328 EUR | -64.90 |
| DAX 40 | 15 min | n/a | 2 | 100.00 | 208 EUR | -20.90 |
| GBP/USD | 4 hours | n/a | 1 | 100.00 | 165 USD | -60.30 |
| Gold | 10 min | n/a | 2 | 100.00 | 114 EUR | -21.30 |
| S&P 500 | 15 min | n/a | 3 | 100.00 | 88.79 EUR | -0.50 |
| Gold | 2 min | n/a | 1 | 100.00 | 64.20 EUR | -0.00 |
| FTSE 100 | 15 min | n/a | 1 | 100.00 | 62.10 EUR | -0.00 |
| S&P 500 | 10 min | n/a | 1 | 100.00 | 49.62 EUR | -13.62 |
Charts
Top 10 of 22 runs. The full list is in the table above.
The code
// ============================================================== // Bollinger Band Oversold Bounce // ProRealAlgos Strategy Library | prorealalgos.com // Type: Mean reversion // Direction: Long only // Timeframe tested: 4 hours // ============================================================== DEFPARAM CumulateOrders = false mid = Average[40](close) sd = STD[40](close) * SQRT(40 / 39) lower = mid - 2 * sd bbdelta = abs(mid - lower) closedelta = abs(close - close[1]) tail = abs(close - low)
9 more lines: the entry and exit rules.
Setup
Questions
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.
It was tested on 22 market and timeframe combinations. The best run by trade count was DAX 40, 4 hours, with 21 trades.
The best run had a maximum drawdown of 624 EUR at the tested position size, against a net result of 1,411 EUR.
It only takes long trades.
Related
The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.
