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Strategies / Mean reversion / Large Body Candle Reversal

Large Body Candle Reversal

Buys after a bar closes down with a body larger than 0.75% of the close, and sells short after a bar closes up with a body that large. Each trade has a 0.75% stop loss and a 0.15% profit target.

Mean reversionLong & shortIntradayDAX 4010 min
n/aProfit factor
951Net profit EUR
87.88%Win rate
132Trades
-330Max drawdown
7.21Avg trade

Best run of 8. DAX 40, 10 min, spread 3, from run sweeps:2026-10-11-DAX40-10m-opt.tsv:28.

Entry rules, long

  1. The bar closes lower than it opens, with a body (open minus close) larger than 0.75% of the close.

Entry rules, short

  1. The bar closes higher than it opens, with a body (close minus open) larger than 0.75% of the close.

Exit rules

  2. A profit target sits 0.15% from the entry price in the trade direction.

Test conditions

PeriodUp to 2026-10-11
InstrumentDAX 40, 10 minutes
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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
DAX 40Best run10 minn/a 13287.88951 EUR-330
USD/JPY3 minn/a 3100.006,970 USD-2,980
USD/JPY2 minn/a 1100.002,300 USD-0.00
Nikkei 2251 minn/a 2100.00173 USD-81.90
GBP/USD15 minn/a 2588.00124 USD-107
GBP/USD5 minn/a 4100.0077.00 USD-45.10
Dow Jones1 minn/a 1100.0069.70 EUR-0.00
S&P 5001 minn/a 1100.009.81 EUR-0.00

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Large Body Candle Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

thr = close * 0.75 / 100

15 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.
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Large Body Candle 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 8 market and timeframe combinations. The best run by trade count was DAX 40, 10 minutes, with 132 trades.

How large was the drawdown?

The best run had a maximum drawdown of 330 EUR at the tested position size, against a net result of 951 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

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ATR Band

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10.31 PF · 53 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.comStatsDocs