Strategies / Mean reversion / Bollinger Upper Band Re-entry

Bollinger Upper Band Re-entry

The system buys when a close drops back below the upper Bollinger Band after the prior bar closed above it, provided RSI and volatility conditions are met. Each trade uses a 1.2% stop loss and a 2.5% profit target, with one contract per trade.

Mean reversionLong onlySwingGold4 hours

1.45Profit factor

2,513Net profit EUR

39.83%Win rate

472Trades

-358Max drawdown

5.32Avg trade

Best run of 45. Gold, 4 hours, spread 0.6, from run pf:2026-10-05-GOLD-4h.tsv:9.

Entry rules, long

RSI(14) is above 55.
ATR(14) is above 0.8 times its 50-period average.

Exit rules

A profit target at 2.5% from the entry price.

Test conditions

Period	Up to 2026-10-05
Instrument	Gold, 4 hours
Spread	0.6 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	2026-10-05

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
GoldBest run	4 hours	1.45	472	39.83	2,513 EUR	-358
Gold	Daily	1.35	351	36.75	857 EUR	-204
Nasdaq 100	30 min	1.22	1,019	36.70	16,884 EUR	-3,350
USD/JPY	30 min	n/a	361	35.73	494,330 USD	-254,320
USD/JPY	10 min	n/a	155	38.71	413,380 USD	-253,790
USD/JPY	15 min	n/a	186	36.56	308,810 USD	-273,050
Nikkei 225	30 min	n/a	1,139	35.03	24,582 USD	-11,251
Nikkei 225	1 hour	n/a	875	35.20	22,997 USD	-8,624
Nikkei 225	2 min	n/a	240	37.50	19,374 USD	-13,790
Nasdaq 100	15 min	n/a	774	35.79	15,828 EUR	-4,225
Dow Jones	10 min	n/a	301	36.21	13,727 EUR	-7,270
Nikkei 225	4 hours	n/a	382	35.08	12,279 USD	-5,615
Nikkei 225	Daily	n/a	235	39.15	11,143 USD	-3,722
Nasdaq 100	10 min	n/a	563	35.35	10,861 EUR	-7,328
Nasdaq 100	1 hour	n/a	1,040	34.52	10,801 EUR	-3,658
Dow Jones	5 min	n/a	149	37.58	10,276 EUR	-6,784
Nasdaq 100	5 min	n/a	273	37.36	9,130 EUR	-6,449
Dow Jones	15 min	n/a	413	34.62	9,124 EUR	-8,598
Dow Jones	3 min	n/a	109	37.61	7,520 EUR	-5,905
DAX 40	5 min	n/a	178	38.76	7,280 EUR	-3,263
Dow Jones	4 hours	n/a	120	36.67	7,204 EUR	-6,049
Nasdaq 100	3 min	n/a	199	36.18	5,982 EUR	-4,548
Nasdaq 100	2 min	n/a	128	37.50	5,970 EUR	-4,791
GBP/USD	Daily	n/a	243	36.21	5,591 USD	-3,794
DAX 40	15 min	n/a	572	34.62	5,431 EUR	-5,418
Nasdaq 100	1 min	n/a	78	39.74	5,283 EUR	-3,653
Nasdaq 100	4 hours	n/a	429	36.83	5,095 EUR	-2,773
Dow Jones	1 min	n/a	30	43.33	4,867 EUR	-4,237
S&P 500	15 min	n/a	524	36.07	3,197 EUR	-1,050
US Crude Oil	4 hours	n/a	435	35.63	2,928 EUR	-1,580
Gold	5 min	n/a	287	41.11	2,846 EUR	-1,097
Gold	15 min	n/a	520	38.65	2,805 EUR	-1,439
S&P 500	5 min	n/a	165	40.61	2,695 EUR	-907
S&P 500	30 min	n/a	767	36.25	2,530 EUR	-1,207
Gold	10 min	n/a	406	38.67	2,415 EUR	-1,522
S&P 500	10 min	n/a	345	36.52	2,406 EUR	-1,003
Gold	1 hour	n/a	954	36.27	2,204 EUR	-746
FTSE 100	5 min	n/a	114	39.47	2,170 EUR	-1,079
S&P 500	1 hour	n/a	803	34.37	2,018 EUR	-1,169
Gold	30 min	n/a	896	35.38	1,902 EUR	-1,184
S&P 500	4 hours	n/a	364	37.09	1,653 EUR	-712
FTSE 100	10 min	n/a	234	35.04	1,646 EUR	-1,318
S&P 500	3 min	n/a	128	38.28	1,493 EUR	-895
S&P 500	1 min	n/a	33	45.45	972 EUR	-446
S&P 500	Daily	n/a	313	24.92	527 EUR	-351

Charts

Results by run

Top 10 of 45 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

// ==============================================================
// Bollinger Upper Band Re-entry
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[25](close)
upper = basis + 2.0 * STD[25](close)
myRsi = RSI[14](close)
myAtr = AverageTrueRange[14](close)
atrsma = Average[50](myAtr)

12 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

Bollinger BandsRSIATRSMA

Longer historyRe-run on up to 1,000,000 barsGold · 4 hours · older data 0.00 EUR

Gold had no history beyond the standard run, so both runs used 30,000 bars.

Gold · 4 hours

Bars available	30,000
Net, standard 200,000-bar run	2,512.80 EUR
Net, long run	2,512.80 EUR
Net on the older data alone	0.00 EUR

Read this firstKnown weaknesses2 points

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Bollinger Upper Band Re-entry 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 45 market and timeframe combinations. The best run was Gold, 4 hours, with a profit factor of 1.45 over 472 trades.

How large was the drawdown?

The best run had a maximum drawdown of 358 EUR at the tested position size, against a net result of 2,513 EUR.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

CCI Breakout

Best run on the same market, Gold.

1.08 PF · 6,065 trades

CCI Regression Typical Price Reversal

Also a mean reversion strategy.

1.44 PF · 803 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