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Strategies / Mean reversion / Herd Selling Band Reversal

Herd Selling Band Reversal

The strategy fades extreme RSI moves on volume spikes and trades price outside a narrow band around its 100-bar average. It buys or sells short on those conditions, with a 2% stop and a 5% target from entry.

Mean reversionLong & shortIntradayEUR/USD3 min
1.32Profit factor
117,525Net profit USD
66.48%Win rate
5,101Trades
-23,519Max drawdown
23.04Avg trade

Best run of 5. EUR/USD, 3 min, spread 1, from run pf:2026-10-12-EURUSD-3m.tsv:5.

Entry rules, long

  2. Accumulation follows herd selling when the Accumulation/Distribution line is above its 21-bar average on volume above 2.5 times its 20-bar average.
  3. Alternatively, herd selling is followed by a sweep, where the low goes below the prior 50-bar low and the close recovers above it.
  4. A band buy occurs when the close is below the 100-bar average minus 0.02 standard deviations and closes up on volume above its 20-bar average.
  5. A second band buy requires the close below the lower band, the volume-weighted candle body above its 20-bar average, and no herd buying.

Entry rules, short

  2. Distribution follows herd buying when the Accumulation/Distribution line is below its 21-bar average on volume above 2.5 times its 20-bar average.
  3. Alternatively, herd buying is followed by a sweep, where the high goes above the prior 50-bar high and the close falls back below it.
  4. A band sell occurs when the close is above the 100-bar average plus 0.02 standard deviations and closes down on volume above its 20-bar average.
  5. A second band sell needs the close above the upper band, the volume-weighted candle body at or below its 20-bar average, and no herd selling.

Exit rules

  2. An opposite signal closes the trade and reverses it.

Test conditions

PeriodUp to 2026-10-12
InstrumentEUR/USD, 3 minutes
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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
EUR/USDBest run3 min1.32 5,10166.48117,525 USD-23,519
EUR/USD2 minn/a 5,11660.22132,595 USD-43,336
EUR/USD10 minn/a 4,72472.3888,780 USD-23,630
EUR/USD5 minn/a 4,91768.6477,609 USD-34,763
EUR/USD15 minn/a 4,60071.9130,493 USD-21,679

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Herd Selling Band Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 3 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE ad = 0

myRsi = RSI[14](close)
volma = Average[20](Volume)

53 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

RSISMAStandard DeviationVolume
Read this firstKnown weaknesses2 points
  • It was only tested on EUR/USD, so there is no evidence from other markets.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Herd Selling Band 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 5 market and timeframe combinations. The best run was EUR/USD, 3 minutes, with a profit factor of 1.32 over 5,101 trades.

How large was the drawdown?

The best run had a maximum drawdown of 23,519 USD at the tested position size, against a net result of 117,525 USD.

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