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Strategies / Momentum / Derivative Oscillator Zero Cross

Derivative Oscillator Zero Cross

The idea buys when a derivative oscillator built from smoothed RSI(14) crosses above 0. It sells the long once that oscillator is at or above 0 and stops rising.

MomentumLong onlySwingGold4 hours
n/aProfit factor
1,180Net profit EUR
40.12%Win rate
1,361Trades
-618Max drawdown
0.87Avg trade

Best run of 6. Gold, 4 hours, spread 0.6, from run sweeps:2026-10-04-GOLD-4h-opt.tsv:25.

Entry rules, long

  2. No long position is open.

Exit rules

  1. The oscillator is at or above 0 and is not higher than its previous value, which closes the long.

Test conditions

PeriodUp to 2026-10-04
InstrumentGold, 4 hours
Spread0.6 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
GoldBest run4 hoursn/a 1,36140.121,180 EUR-618
Nikkei 2254 hoursn/a 1,10844.4017,476 USD-7,564
SilverDailyn/a 53240.2313,115 USD-6,840
DAX 404 hoursn/a 1,35246.0112,013 EUR-3,661
Nasdaq 100Dailyn/a 49946.494,749 EUR-4,169
S&P 500Dailyn/a 69244.081,457 EUR-893

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Derivative Oscillator Zero Cross
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[14](close)
emafirst = ExponentialAverage[5](myRsi)
emasecond = ExponentialAverage[3](emafirst)
sig = Average[9](emasecond)
myDo = emasecond - sig

11 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. 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".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

EMARSISMA
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 618 EUR is large next to the net profit of 1,180 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 Derivative Oscillator Zero Cross 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 6 market and timeframe combinations. The best run by trade count was Gold, 4 hours, with 1,361 trades.

How large was the drawdown?

The best run had a maximum drawdown of 618 EUR at the tested position size, against a net result of 1,180 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Trend Surfer

Uses the same indicator.

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CCI Breakout

Best run on the same market, Gold.

1.08 PF · 6,065 trades

ATR Momentum

Also a momentum strategy.

n/a PF · 15,021 trades

Get the full rules, the complete code and the ProRealAlgos portfolio as a member.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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.comStatsDocs