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Strategies / Mean reversion / Four Period RSI Pullback

Four Period RSI Pullback

Buys when price is above its 200-period average and the 4-period RSI is at or below 25. Closes the long when the RSI is at or above 55.

Mean reversionLong onlySwingS&P 500Daily
3.58Profit factor
4,696Net profit EUR
74.80%Win rate
377Trades
-604Max drawdown
12.46Avg trade

Best run of 15. S&P 500, Daily, spread 1, from run pf:2026-10-05-USA500-D.tsv:14.

Entry rules, long

  1. The close is above the 200-period simple moving average
  3. No long position is open

Exit rules

  1. The 4-period RSI is at or above 55, which closes the long

Test conditions

PeriodUp to 2026-10-05
InstrumentS&P 500, Daily
Spread1 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
S&P 500Best runDaily3.58 37774.804,696 EUR-604
Nasdaq 100Daily2.68 28471.1312,374 EUR-2,311
FTSE 100Daily1.62 25071.204,399 EUR-1,001
EUR/USDDailyn/a 19967.3430,694 USD-23,330
Nikkei 225Dailyn/a 20668.9323,383 USD-12,957
Dow JonesDailyn/a 32470.0613,522 EUR-5,517
Nikkei 2254 hoursn/a 50366.209,075 USD-4,231
Dow Jones4 hoursn/a 23869.757,810 EUR-3,723
Dow Jones30 minn/a 1,43767.366,063 EUR-3,778
Nasdaq 1004 hoursn/a 66565.865,350 EUR-1,806
GBP/USD4 hoursn/a 72567.032,993 USD-2,148
FTSE 1004 hoursn/a 57870.932,635 EUR-1,217
GBP/USD1 hourn/a 2,77966.352,443 USD-2,080
S&P 5004 hoursn/a 68968.511,071 EUR-686
GoldDailyn/a 23565.53741 EUR-609

Charts

Results by run

Top 10 of 15 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

// ==============================================================
// Four Period RSI Pullback
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[4](close)
sma = Average[200](close)

9 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

RSISMA
Longer historyRe-run on up to 1,000,000 barsS&P 500 · Daily · older data 0.00 EUR

S&P 500 had no history beyond the standard run, so both runs used 14,000 bars.

S&P 500 · Daily

Bars available14,000
Net, standard 200,000-bar run4,695.76 EUR
Net, long run4,695.76 EUR
Net on the older data alone0.00 EUR
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 Four Period RSI Pullback 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 15 market and timeframe combinations. The best run was S&P 500, Daily, with a profit factor of 3.58 over 377 trades.

How large was the drawdown?

The best run had a maximum drawdown of 604 EUR at the tested position size, against a net result of 4,696 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Regime Filtered RSI Dip

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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