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Strategies / Mean reversion / Five-Period RSI Recovery Long

Five-Period RSI Recovery Long

The system buys when a short RSI recovers above 35, a sign that price has bounced from weakness. It sells when RSI falls back below 75 or below 10, and a 5% stop and 10% target limit each trade.

Mean reversionLong onlySwingDAX 404 hours
1.31Profit factor
23,396Net profit EUR
67.62%Win rate
908Trades
-4,133Max drawdown
25.77Avg trade

Best run of 12. DAX 40, 4 hours, spread 3, from run pf:2026-10-05-DAX40-4h.tsv:2.

Entry rules, long

  1. Buy 1 contract at market when the 5-period RSI crosses above 35.

Exit rules

  2. Sell at market when the 5-period RSI crosses below 10.
  3. A stop loss sits 5% below the entry price.
  4. A profit target sits 10% above the entry price.

Test conditions

PeriodUp to 2026-10-05
InstrumentDAX 40, 4 hours
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 tested2026-10-05

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
DAX 40Best run4 hours1.31 90867.6223,396 EUR-4,133
EUR/USD3 minn/a 5,06555.4271,400 USD-43,278
Nikkei 2254 hoursn/a 74366.6235,617 USD-10,021
Dow JonesDailyn/a 48067.0827,311 EUR-7,745
Nasdaq 1004 hoursn/a 94166.8415,499 EUR-4,394
Dow Jones4 hoursn/a 29268.1512,817 EUR-9,335
Dow Jones30 minn/a 2,16063.4712,727 EUR-10,526
Nasdaq 1001 hourn/a 3,42061.3510,220 EUR-6,358
DAX 40Dailyn/a 55257.077,750 EUR-5,893
Brent CrudeDailyn/a 23450.005,729 EUR-4,076
S&P 5004 hoursn/a 92666.952,941 EUR-1,254
S&P 500Dailyn/a 54561.652,678 EUR-1,376

Charts

Results by run

Top 10 of 12 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Five-Period RSI Recovery Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[5](close)

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

RSI
Longer historyRe-run on up to 1,000,000 barsDAX 40 · 4 hours · older data 52.20 EUR

DAX 40 had no history beyond the standard run, so both runs used 28,000 bars.

DAX 40 · 4 hours

Bars available28,000
Net, standard 200,000-bar run23,396.30 EUR
Net, long run23,448.50 EUR
Net on the older data alone52.20 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 Five-Period RSI Recovery Long 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 12 market and timeframe combinations. The best run was DAX 40, 4 hours, with a profit factor of 1.31 over 908 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,133 EUR at the tested position size, against a net result of 23,396 EUR.

Does it trade long, short or both?

It only takes long trades.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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