Strategies / Mean reversion / Cooled Momentum Short Entry

Cooled Momentum Short Entry

Sells short when RSI(14) is 60 or below and the bar is quiet, or when price makes a new 20-bar high, while no pump is underway. The short is covered when a pump starts or price moves 2% below or 6% above entry.

Mean reversionShort onlySwingUSD/JPYDaily

n/aProfit factor

1,372,750Net profit USD

59.88%Win rate

486Trades

-985,400Max drawdown

2,825Avg trade

Best run of 1. USD/JPY, Daily, spread 1, from run sweeps:2026-10-12-USDJPY-D-opt.tsv:48.

Entry rules, short

Or the high is above the highest high of the previous 20 bars.
No pump is underway (RSI(14) under 70, and no bar with volume over 1.5 times its 20-bar average and a gain over 5%).
Only when no position is open.

Exit rules

The short is closed when price falls 2% below entry (target) or rises 6% above entry (stop).

Test conditions

Period	Up to 2026-10-12
Instrument	USD/JPY, Daily
Spread	1 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	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	n/a	486	59.88	1,372,750 USD	-985,400

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Cooled Momentum Short Entry
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Short only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE have = 0

myRsi = RSI[14](close)
avgvol = Average[20](volume)
gain = (close - close[1]) / close[1]

26 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

RSIVolume

Read this firstKnown weaknesses3 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 985,400 USD is large next to the net profit of 1,372,750 USD.
It was only tested on USD/JPY, so there is no evidence from other markets.

Questions

About this strategy

Can I run Cooled Momentum Short 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 one combination, USD/JPY, Daily, with 486 trades.

How large was the drawdown?

The best run had a maximum drawdown of 985,400 USD at the tested position size, against a net result of 1,372,750 USD.

Does it trade long, short or both?

It only takes short trades.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

1.09 PF · 6,194 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