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Strategies / Mean reversion / Fast RSI Oversold Reversal

Fast RSI Oversold Reversal

Buys on a red candle when the 7-period RSI is below 30 and the candle body exceeds a quarter of the 30-period EMA of bodies. Sells on a green candle when the RSI is above 30 and the body is over half that average.

Mean reversionLong onlySwingNasdaq 100Daily
3.07Profit factor
14,647Net profit EUR
63.24%Win rate
370Trades
-2,518Max drawdown
39.59Avg trade

Best run of 8. Nasdaq 100, Daily, spread 3, from run pf:2026-10-12-NAS100-D.tsv:24.

Entry rules, long

  1. The candle is red, with the close below the open.
  3. The candle body is larger than one quarter of the 30-period EMA of bodies.
  4. No long position is open.

Exit rules

  1. A green candle closes the long when the 7-period RSI is above 30 and the body exceeds half the 30-period EMA of bodies.

Test conditions

PeriodUp to 2026-10-12
InstrumentNasdaq 100, 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
Nasdaq 100Best runDaily3.07 37063.2414,647 EUR-2,518
Nasdaq 1004 hours1.45 1,20666.9211,199 EUR-2,314
Nikkei 225Dailyn/a 40766.3432,371 USD-6,349
Dow JonesDailyn/a 47561.2611,252 EUR-6,182
DAX 40Dailyn/a 35672.478,464 EUR-3,582
FTSE 100Dailyn/a 40670.205,230 EUR-1,650
S&P 500Dailyn/a 48559.792,614 EUR-731
S&P 5004 hoursn/a 1,21367.44980 EUR-614

Charts

Results by run

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Fast RSI Oversold Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[7](close)
body = abs(close - open)
emabody = ExponentialAverage[30](body)

13 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

RSIEMA
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Fast RSI Oversold 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 8 market and timeframe combinations. The best run was Nasdaq 100, Daily, with a profit factor of 3.07 over 370 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,518 EUR at the tested position size, against a net result of 14,647 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Scored Oversold Reversal Long

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

Copy trading on US indices is available to ProRealAlgos members as spots open.

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