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Strategies / Trend / Follow Line Cycle Confirmation

Follow Line Cycle Confirmation

The system enters when a trailing follow line flips direction and at least two of three filters agree: a Schaff-style cycle reading, MACD momentum and the 200-period EMA. Each trade has a stop at 1.5 times ATR(14) and a target at 3 times ATR(14).

TrendLong & shortSwingDow JonesDaily
1.51Profit factor
13,081Net profit EUR
38.07%Win rate
197Trades
-2,838Max drawdown
66.40Avg trade

Best run of 11. Dow Jones, Daily, spread 3, from run pf:2026-10-05-DOW30-D.tsv:17.

Entry rules, long

  2. The cycle line turns up while below 25.
  3. The MACD line crosses above its 9-period signal line, or the histogram rises.
  4. Close is above the 200-period EMA.
  5. At least two of the three filters above agree before entering.

Entry rules, short

  2. The cycle line turns down while above 75.
  3. The MACD line crosses below its 9-period signal line, or the histogram falls.
  4. Close is below the 200-period EMA.
  5. At least two of the three filters above agree before entering.

Exit rules

  2. The profit target sits 3 times ATR(14) from entry and closes the trade.

Test conditions

PeriodUp to 2026-10-05
InstrumentDow Jones, 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 tested2026-10-05

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest runDaily1.51 19738.0713,081 EUR-2,838
S&P 5004 hours1.30 45238.051,908 EUR-445
Nikkei 225Dailyn/a 16738.3210,170 USD-7,462
Dow Jones1 hourn/a 48634.367,075 EUR-4,716
Nikkei 2254 hoursn/a 35135.046,904 USD-4,878
Dow Jones4 hoursn/a 14238.036,368 EUR-4,027
USD/JPYDailyn/a 18133.154,300 USD-3,420
US Crude Oil1 hourn/a 1,10533.034,023 EUR-2,893
Nasdaq 100Dailyn/a 15932.702,935 EUR-2,064
Gold4 hoursn/a 40435.40705 EUR-347
GoldDailyn/a 20936.36328 EUR-292

Charts

Results by run

Top 10 of 11 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Follow Line Cycle Confirmation
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE tline = 0
ONCE flitrend = 0
ONCE kone = 0
ONCE done = 0
ONCE ktwo = 0
ONCE stc = 0
ONCE stcinit = 0

basis = Average[21](close)
dev = STD[21](close) * 1.0
fliatr = AverageTrueRange[5](close)
flisig = 0

94 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

Bollinger BandsATRMACDEMA
Longer historyRe-run on up to 1,000,000 barsDow Jones · Daily · older data 0.00 EUR

Dow Jones had no history beyond the standard run, so both runs used 14,000 bars.

Dow Jones · Daily

Bars available14,000
Net, standard 200,000-bar run13,080.70 EUR
Net, long run13,080.70 EUR
Net on the older data alone0.00 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 Follow Line Cycle Confirmation 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 11 market and timeframe combinations. The best run was Dow Jones, Daily, with a profit factor of 1.51 over 197 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,838 EUR at the tested position size, against a net result of 13,081 EUR.

Does it trade long, short or both?

It trades both long and short.

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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.comStatsDocs