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Strategies / Pattern / Displacement Zone First Tap

Displacement Zone First Tap

The strategy tracks trend using pivot highs and lows, then buys 1 contract when price first taps a bullish displacement zone during an uptrend. It sells short on the mirror setup in a downtrend, with a 0.8% stop and 1.8% target.

PatternLong & shortIntradayDAX 4015 min
n/aProfit factor
6,450Net profit EUR
38.72%Win rate
3,412Trades
-3,977Max drawdown
1.89Avg trade

Best run of 4. DAX 40, 15 min, spread 3, from run sweeps:2026-10-12-DAX40-15m-opt.tsv:4.

Entry rules, long

  1. The trend is up after a close above the last confirmed pivot high, until a close below the last pivot low.
  2. A bullish displacement candle, with a body over 60% of its range, marks a demand zone from its low to its open.
  4. Each demand zone triggers only once.
  5. Signals are evaluated only after bar 5.

Entry rules, short

  1. The trend is down after a close below the last confirmed pivot low, until a close above the last pivot high.
  2. A bearish displacement candle, with a body over 60% of its range, marks a supply zone from its open to its high.
  4. Each supply zone triggers only once.
  5. Signals are evaluated only after bar 5.

Exit rules

  1. The stop sits 0.8% from the entry price against the trade.
  2. The target sits 1.8% from the entry price in the trade direction.

Test conditions

PeriodUp to 2026-10-12
InstrumentDAX 40, 15 minutes
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
DAX 40Best run15 minn/a 3,41238.726,450 EUR-3,977
EUR/USDDailyn/a 30834.7433,456 USD-23,321
Nikkei 225Dailyn/a 25633.985,286 USD-4,753
Brent CrudeDailyn/a 12833.591,468 EUR-807

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Displacement Zone First Tap
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 15 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE lasthigh = 0
ONCE lastlow = 0
ONCE hashigh = 0
ONCE haslow = 0
ONCE trend = 0
ONCE myDlow = 0
ONCE myDhigh = 0
ONCE dhas = 0
ONCE dused = 0
ONCE slow = 0
ONCE shigh = 0
ONCE shas = 0
ONCE sused = 0

62 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.
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 3,977 EUR is large next to the net profit of 6,450 EUR.

Questions

About this strategy

Can I run Displacement Zone First Tap 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 4 market and timeframe combinations. The best run by trade count was DAX 40, 15 minutes, with 3,412 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,977 EUR at the tested position size, against a net result of 6,450 EUR.

Does it trade long, short or both?

It trades both long and short.

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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