Strategies / Mean reversion / Dual Setup Band Dip Buyer

Dual Setup Band Dip Buyer

Buys on two dip setups, a sharp drop closing below the prior lower 40-bar band or a close below the 50-bar EMA and lower 20-bar band. Sells when the close rises above the 20-bar middle band while the trade is in profit.

Mean reversionLong onlySwingNasdaq 100Daily

1.80Profit factor

9,858Net profit EUR

61.54%Win rate

195Trades

-1,723Max drawdown

50.55Avg trade

Best run of 30. Nasdaq 100, Daily, spread 3, from run pf:2026-10-05-NAS100-D.tsv:6.

Entry rules, long

Setup A: the 40-bar Bollinger half-width exceeds 0.008 times the close and the absolute close change exceeds 0.0175 times the close.
Setup A also needs the close-to-low tail under 0.25 times the half-width and the close below the prior lower band.
Setup A also needs the close at or below the prior close.
Setup B also needs volume below 20 times its prior 30-bar average.

Exit rules

The close must also be above the entry price for the sell to trigger.
A 5% profit target closes the trade.
A 5% stop loss closes the trade.
A buy signal is ignored on a bar where the sell condition is also met.

Test conditions

Period	Up to 2026-10-05
Instrument	Nasdaq 100, Daily
Spread	3 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	2026-10-05

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nasdaq 100Best run	Daily	1.80	195	61.54	9,858 EUR	-1,723
EUR/USD	2 min	n/a	232	59.48	130,422 USD	-61,012
USD/JPY	1 hour	n/a	7	100.00	127,350 USD	-16,540
USD/JPY	4 hours	n/a	11	100.00	120,220 USD	-40,450
EUR/USD	5 min	n/a	91	63.74	98,373 USD	-23,976
USD/JPY	15 min	n/a	2	100.00	28,570 USD	-27,820
USD/JPY	10 min	n/a	1	100.00	20,400 USD	-100
EUR/USD	30 min	n/a	13	69.23	18,400 USD	-14,292
Dow Jones	Daily	n/a	136	66.18	14,847 EUR	-4,759
Nikkei 225	Daily	n/a	191	61.26	11,668 USD	-9,449
Nikkei 225	4 hours	n/a	65	78.46	9,264 USD	-4,546
DAX 40	Daily	n/a	206	64.56	7,561 EUR	-2,779
DAX 40	4 hours	n/a	82	74.39	4,895 EUR	-1,747
FTSE 100	Daily	n/a	113	68.14	4,709 EUR	-1,701
Nikkei 225	15 min	n/a	10	100.00	4,349 USD	-1,165
Nasdaq 100	4 hours	n/a	117	76.92	4,218 EUR	-2,678
Dow Jones	15 min	n/a	7	100.00	3,919 EUR	-530
Nikkei 225	10 min	n/a	5	80.00	1,969 USD	-1,180
Dow Jones	30 min	n/a	10	80.00	1,934 EUR	-1,729
S&P 500	Daily	n/a	148	62.84	1,862 EUR	-534
Brent Crude	5 min	n/a	32	81.25	1,079 EUR	-983
Gold	10 min	n/a	8	100.00	648 EUR	-163
Dow Jones	10 min	n/a	2	100.00	646 EUR	-295
S&P 500	15 min	n/a	7	100.00	350 EUR	-80.41
Gold	5 min	n/a	3	100.00	250 EUR	-82.70
Dow Jones	3 min	n/a	1	100.00	241 EUR	-211
Gold	3 min	n/a	2	100.00	170 EUR	-52.20
GBP/USD	10 min	n/a	1	100.00	159 USD	-88.30
GBP/USD	15 min	n/a	1	100.00	149 USD	-120
Gold	2 min	n/a	2	100.00	141 EUR	-67.80

Charts

Results by run

Top 10 of 30 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Dual Setup Band Dip Buyer
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

midf = Average[40](close)
sdf = STD[40](close) * SQRT(40 / 39)
lowerf = midf - 2 * sdf
bbdelta = abs(midf - lowerf)
closedelta = abs(close - close[1])
tail = abs(close - low)

tp = TypicalPrice
bbmid = Average[20](tp)
bblow = bbmid - 2 * STD[20](tp) * SQRT(20 / 19)
emaslow = ExponentialAverage[50](close)
volmean = Average[30](volume)

15 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

Bollinger BandsEMASMAVolume

Longer historyRe-run on up to 1,000,000 barsNasdaq 100 · Daily · older data 0.00 EUR

Nasdaq 100 had no history beyond the standard run, so both runs used 10,000 bars.

Nasdaq 100 · Daily

Bars available	10,000
Net, standard 200,000-bar run	9,858.00 EUR
Net, long run	9,858.00 EUR
Net on the older data alone	0.00 EUR

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 Dual Setup Band Dip Buyer 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 30 market and timeframe combinations. The best run was Nasdaq 100, Daily, with a profit factor of 1.80 over 195 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,723 EUR at the tested position size, against a net result of 9,858 EUR.

Does it trade long, short or both?

It only takes long 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

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