Strategies / Mean reversion / EMA Deviation MACD Reversal

EMA Deviation MACD Reversal

The strategy buys after price dips below its 18-period EMA and turns up, with MACD crossing above its signal line from a deeply negative area. It sells short on the mirror condition and applies a 7.2222% stop and a 1.3333% profit target.

Mean reversionLong & shortSwingFTSE 1001 hour

1.80Profit factor

5,516Net profit EUR

89.19%Win rate

148Trades

-1,174Max drawdown

37.27Avg trade

Best run of 25. FTSE 100, 1 hour, spread 2, from run pf:2026-10-12-FTSE100-1h.tsv:1.

Entry rules, long

When flat, the close is more than 0.0889% of price below the 18-period EMA.
The gap to the EMA rises this bar after falling on the previous bar.
When these conditions hold, one contract is bought at market.

Entry rules, short

When flat, the close is more than 0.0889% of price above the 18-period EMA.
The gap to the EMA falls this bar after rising on the previous bar.
When these conditions hold, one contract is sold short at market.

Exit rules

While short, a MACD long signal reverses the position once the close is more than 0.7222% below the entry price.
A long closes at market when the close is more than 1.3333% above the entry price.
A short closes at market when the close is more than 1.3333% below the entry price.
A stop loss is set 7.2222% from the entry price.

Test conditions

Period	Up to 2026-10-12
Instrument	FTSE 100, 1 hour
Spread	2 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
FTSE 100Best run	1 hour	1.80	148	89.19	5,516 EUR	-1,174
USD/JPY	15 min	n/a	10	100.00	179,620 USD	-108,250
USD/JPY	10 min	n/a	6	100.00	127,310 USD	-113,040
EUR/USD	4 hours	n/a	73	87.67	35,405 USD	-23,363
USD/JPY	3 min	n/a	1	100.00	21,220 USD	-8,890
USD/JPY	5 min	n/a	1	100.00	20,220 USD	-5,550
Nikkei 225	10 min	n/a	66	87.88	15,797 USD	-9,116
Dow Jones	15 min	n/a	55	89.09	10,108 EUR	-5,386
Dow Jones	4 hours	n/a	43	86.05	9,705 EUR	-5,473
US Crude Oil	1 hour	n/a	348	84.77	8,884 EUR	-2,305
Nikkei 225	1 hour	n/a	181	82.87	7,485 USD	-7,067
Nikkei 225	1 min	n/a	7	100.00	5,858 USD	-2,670
US Crude Oil	3 min	n/a	97	89.69	5,258 EUR	-1,534
US Crude Oil	30 min	n/a	421	82.66	4,866 EUR	-4,196
GBP/USD	30 min	n/a	21	100.00	4,422 USD	-526
US Crude Oil	5 min	n/a	120	85.83	3,245 EUR	-2,162
Brent Crude	3 min	n/a	68	88.24	3,155 EUR	-1,093
FTSE 100	Daily	n/a	64	85.94	1,921 EUR	-837
EUR/USD	10 min	n/a	1	100.00	1,417 USD	-567
Gold	3 min	n/a	17	94.12	741 EUR	-452
GBP/USD	10 min	n/a	5	100.00	711 USD	-459
Gold	5 min	n/a	33	87.88	651 EUR	-636
Dow Jones	2 min	n/a	1	100.00	627 EUR	-465
FTSE 100	3 min	n/a	1	100.00	113 EUR	-112
S&P 500	2 min	n/a	1	100.00	88.88 EUR	-55.73

Charts

Results by run

Top 10 of 25 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// EMA Deviation MACD Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ema = ExponentialAverage[18](close)
diff = close - ema
myMacd = (ExponentialAverage[12](close) - ExponentialAverage[26](close)) * 3
signal = Average[9](myMacd)
mthr = close * 0.8889 / 100
dthr = close * 0.0889 / 100

39 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

EMAMACDSMA

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 EMA Deviation MACD Reversal 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 25 market and timeframe combinations. The best run was FTSE 100, 1 hour, with a profit factor of 1.80 over 148 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,174 EUR at the tested position size, against a net result of 5,516 EUR.

Does it trade long, short or both?

It trades both long and short.

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DAX Survivor

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Dual Setup Band Dip Buyer

Also a mean reversion strategy.

1.80 PF · 195 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