The books... not free though
The idea is to buy a bounce after a decline. It enters long when the close sits above the 50 EMA but below the 100 EMA, closes higher than the previous bar, and the 100-bar regression slope is still negative. Trades exit at a 2.75% target, a 10% stop, or when the close slips below the 7 EMA while staying above the 28 EMA.
Best run of 10. DAX 40, 4 hours, spread 3, from run pf:2026-09-24-DAX40-4h.tsv:4.
| Period | Up to 2026-09-25 |
| Instrument | DAX 40, 4 hours |
| Spread | 3 points |
| Contracts | 1 |
| 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 | 2026-09-25 |
| positionSize Contracts per trade | 1 |
| fastPeriod EMA close must be above | 50 |
| slowPeriod EMA close must be below | 100 |
| slopePeriod Regression slope length | 100 |
| exitFastPeriod Exit EMA, fast | 7 |
| exitSlowPeriod Exit EMA, slow | 28 |
| stopLossPct Protective stop, percent | 10 |
| takeProfitPct Profit target, percent | 2.75 |
Every run
| Market | Timeframe | PF | Trades | Win % | Net | Max DD |
|---|---|---|---|---|---|---|
| DAX 40Best run | 4 hours | 1.88 | 312 | 52.24 | 11,042 EUR | -2,379 |
| Nikkei 225 | 4 hours | n/a | 237 | 54.01 | 14,883 USD | -6,264 |
| Dow Jones | 4 hours | n/a | 80 | 52.50 | 11,974 EUR | -2,523 |
| Dow Jones | Daily | n/a | 115 | 52.17 | 9,031 EUR | -2,364 |
| US Crude Oil | 4 hours | n/a | 267 | 53.18 | 4,896 EUR | -1,304 |
| Nasdaq 100 | 1 hour | n/a | 1,140 | 42.19 | 4,650 EUR | -2,798 |
| Nasdaq 100 | 30 min | n/a | 1,825 | 42.58 | 4,458 EUR | -2,282 |
| FTSE 100 | 4 hours | n/a | 308 | 51.30 | 4,000 EUR | -1,154 |
| Silver | Daily | n/a | 168 | 56.55 | 3,809 USD | -3,597 |
| S&P 500 | 4 hours | n/a | 239 | 58.16 | 1,689 EUR | -1,003 |
Charts
The code
// ============================================================ // Buy After Price Fall // ProRealAlgos Strategy Library | prorealalgos.com // Type: Mean reversion // Direction: Long only // Timeframe tested: 4 hours // ============================================================ // --- Settings --- DEFPARAM CumulateOrders = false // --- Parameters --- positionSize = 1 // contracts per trade fastPeriod = 50 // close must be above this EMA slowPeriod = 100 // close must be below this EMA slopePeriod = 100 // regression slope length, must be falling exitFastPeriod = 7 // exit EMA, close must drop below it exitSlowPeriod = 28 // exit EMA, close must still be above it stopLossPct = 10 // protective stop, percent of entry price takeProfitPct = 2.75 // profit target, percent of entry price // --- Indicators --- fastMA = ExponentialAverage[fastPeriod](close) slowMA = ExponentialAverage[slowPeriod](close) regressionSlope = LinearRegressionSlope[slopePeriod](close) exitFastMA = ExponentialAverage[exitFastPeriod](close) exitSlowMA = ExponentialAverage[exitSlowPeriod](close)
18 more lines: the entry and exit rules.
Setup
Questions
Yes, it uses standard entries and exits. The code was rewritten after testing and not compile-checked, so verify it in ProBacktest before live use.
All 9 other runs in the table were profitable, including Nikkei 225 4 hours at USD 14,882.5 and Dow Jones 4 hours at EUR 11,974. S&P 500 4 hours made the least, EUR 1,688.92.
The DAX 40 best run had a max drawdown of EUR 2,378.6 against EUR 11,042 net profit at a position size of 1.
The 4 hour timeframe gave the best DAX result and most of the strongest rows in the table, which suits a pullback system that holds for several bars.
Related
The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.
