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Strategies / Mean reversion / Five Bar Low Reversion

Five Bar Low Reversion

The system buys when the close falls below the lowest low of the previous five bars while flat. It closes the long when the 2-period RSI rises above 50 or after five bars, whichever comes first.

Mean reversionLong onlySwingNasdaq 100Daily
1.59Profit factor
12,133Net profit EUR
60.67%Win rate
689Trades
-2,429Max drawdown
17.61Avg trade

Best run of 6. Nasdaq 100, Daily, spread 3, from run pf:2026-10-13-NAS100-D.tsv:7.

Entry rules, long

  1. While flat, the close is below the lowest low of the previous 5 bars.

Exit rules

  2. 5 bars have passed since the entry signal bar.

Test conditions

PeriodUp to 2026-10-13
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 tested2026-10-13

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nasdaq 100Best runDaily1.59 68960.6712,133 EUR-2,429
Dow JonesDailyn/a 85662.9720,264 EUR-8,821
Nikkei 225Dailyn/a 77365.0715,929 USD-14,858
Dow Jones4 hoursn/a 65364.937,695 EUR-6,176
FTSE 100Dailyn/a 76265.882,978 EUR-2,729
S&P 500Dailyn/a 90357.362,956 EUR-896

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Five Bar Low Reversion
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE since = 999

myRsi = RSI[2](close)
myLow = lowest[5](low[1])

16 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

RSI
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 Five Bar Low Reversion 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 6 market and timeframe combinations. The best run was Nasdaq 100, Daily, with a profit factor of 1.59 over 689 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,429 EUR at the tested position size, against a net result of 12,132 EUR.

Does it trade long, short or both?

It only takes long trades.

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Double Sevens

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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