Strategies / Mean reversion / Internal Bar Strength Two-Way Reversion

Internal Bar Strength Two-Way Reversion

Buys after a lower close when the close sits below 0.7 of the bar's range, and sells short after a higher close when it sits above 0.3. Longs close above 0.9 of the range and shorts close below 0.1.

Mean reversionLong & shortSwingUSD/JPYDaily

1.26Profit factor

3,598Net profit USD

66.38%Win rate

348Trades

-1,651Max drawdown

10.34Avg trade

Best run of 1. USD/JPY, Daily, spread 1.4, from run pf:2026-10-10-USDJPY-D.tsv:38.

Entry rules, long

The close is lower than the prior bar's close.
The prior bar's low is lower than the low of the bar before it.

Entry rules, short

The close is higher than the prior bar's close.
The prior bar's high is higher than the high of the bar before it.

Exit rules

Internal bar strength is below 0.1, and the short position is closed at market.

Test conditions

Period	Up to 2026-10-10
Instrument	USD/JPY, Daily
Spread	1.4 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	2026-10-10

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	1.26	348	66.38	3,598 USD	-1,651

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Internal Bar Strength Two-Way Reversion
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false
ONCE capital = 10000

26 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.

Read this firstKnown weaknesses2 points

It was only tested on USD/JPY, so there is no evidence from other markets.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Internal Bar Strength Two-Way Reversion 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 one combination, USD/JPY, Daily, with a profit factor of 1.26 over 348 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,651 USD at the tested position size, against a net result of 3,598 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Best run on the same market, USD/JPY.

1.04 PF · 10,813 trades

Turtle Soup

Also a mean reversion strategy.

1.26 PF · 867 trades

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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