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Strategies / Mean reversion / Dip Buy With True Range Bracket

Dip Buy With True Range Bracket

Buys when the close drops below the lowest low of the previous 7 bars, with a stop and a target each set 2 times the 10 bar average of true range from the entry price. Long only, exiting only at those two levels.

Mean reversionLong onlySwingDow JonesDaily
1.46Profit factor
41,081Net profit EUR
55.71%Win rate
666Trades
-6,217Max drawdown
61.68Avg trade

Best run of 11. Dow Jones, Daily, spread 3, from run pf:2026-10-12-DOW30-D.tsv:30.

Entry rules, long

  2. Entries are only taken after bar 20.

Exit rules

  2. A target sits the same distance above the entry price.

Test conditions

PeriodUp to 2026-10-12
InstrumentDow Jones, Daily
Spread3 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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest runDaily1.46 66655.7141,081 EUR-6,217
S&P 500Daily1.46 76051.455,340 EUR-1,061
Dow Jones30 minn/a 3,67549.5215,091 EUR-6,107
Dow Jones1 hourn/a 2,07649.6113,910 EUR-10,648
Dow Jones4 hoursn/a 51752.0311,872 EUR-8,171
Nikkei 2254 hoursn/a 1,21650.3311,578 USD-9,009
Nasdaq 1004 hoursn/a 1,54750.4210,666 EUR-3,404
FTSE 100Dailyn/a 61354.168,659 EUR-2,364
FTSE 1004 hoursn/a 1,44851.934,293 EUR-2,362
S&P 5004 hoursn/a 1,57551.873,589 EUR-1,175
GoldDailyn/a 59449.661,303 EUR-746

Charts

Results by run

Top 10 of 11 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

// ==============================================================
// Dip Buy With True Range Bracket
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

myAtr = Average[10](TR(close))
dip = lowest[7](low)

10 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

True RangeSMA
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 Dip Buy With True Range Bracket 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 11 market and timeframe combinations. The best run was Dow Jones, Daily, with a profit factor of 1.46 over 666 trades.

How large was the drawdown?

The best run had a maximum drawdown of 6,216 EUR at the tested position size, against a net result of 41,080 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Turtle Trade

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2.42 PF · 6,324 trades

Trend Pullback Reversal

Also a mean reversion strategy.

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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.comStatsDocs