Strategies / Pattern / Hidden RSI Divergence ATR Bracket

Hidden RSI Divergence ATR Bracket

The strategy buys when the 50-period EMA is above the 150-period EMA, closes sit above the 50-period EMA, and a hidden bullish RSI divergence appeared within 5 bars. It sells short on the bearish version of the setup, with stops and targets set from ATR.

PatternLong & shortSwingDAX 401 hour

1.50Profit factor

11,249Net profit EUR

41.23%Win rate

228Trades

-2,380Max drawdown

49.34Avg trade

Best run of 15. DAX 40, 1 hour, spread 3, from run pf:2026-10-12-DAX40-1h.tsv:3.

Entry rules, long

The 50-period EMA is above the 150-period EMA.
The closes of the previous three bars and the current close are above the 50-period EMA.
The stochastic %K, with 3-period and 4-bar smoothing, crosses above %D, a 3-bar average of %K.
When flat and all these conditions hold, one contract is bought at market.

Entry rules, short

The 50-period EMA is below the 150-period EMA.
Closes from the last three bars sit below the 50-period EMA.
The stochastic %K, with 3-period and 4-bar smoothing, crosses under %D, a 3-bar average of %K.
When flat and all these conditions hold, one contract is sold short at market.

Exit rules

A stop 5 times the 11-period ATR from entry and a target 9 times that ATR from entry close the trade.

Test conditions

Period	Up to 2026-10-12
Instrument	DAX 40, 1 hour
Spread	3 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	1 hour	1.50	228	41.23	11,249 EUR	-2,380
USD/JPY	Daily	n/a	39	51.28	12,660 USD	-2,200
Silver	Daily	n/a	22	54.55	12,064 USD	-3,686
Nikkei 225	10 min	n/a	400	40.25	8,576 USD	-8,226
Brent Crude	4 hours	n/a	40	50.00	7,047 EUR	-3,465
US Crude Oil	30 min	n/a	346	39.88	4,171 EUR	-4,007
Nasdaq 100	Daily	n/a	24	45.83	3,768 EUR	-2,341
DAX 40	15 min	n/a	400	36.50	3,677 EUR	-2,294
USD/JPY	4 hours	n/a	112	38.39	3,580 USD	-2,940
Brent Crude	5 min	n/a	375	39.20	3,363 EUR	-1,693
Nasdaq 100	3 min	n/a	359	38.16	2,532 EUR	-2,265
Dow Jones	2 min	n/a	328	36.28	2,421 EUR	-2,157
Gold	5 min	n/a	371	39.08	1,242 EUR	-365
Gold	15 min	n/a	415	36.14	1,092 EUR	-369
Gold	Daily	n/a	21	52.38	418 EUR	-411

Charts

Results by run

Top 10 of 15 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Hidden RSI Divergence ATR Bracket
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE raw = 50
ONCE plbar = -1000
ONCE plosc = 0
ONCE pllow = 0
ONCE plset = 0
ONCE phbar = -1000
ONCE phosc = 0
ONCE phhigh = 0
ONCE phset = 0

emaf = ExponentialAverage[50](close)
emas = ExponentialAverage[150](close)
hh = highest[3](high)
ll = lowest[3](low)

62 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
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".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

ATREMARSISMAStochastic

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 Hidden RSI Divergence ATR Bracket 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 DAX 40, 1 hour, with a profit factor of 1.50 over 228 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,380 EUR at the tested position size, against a net result of 11,248 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.com Stats Docs