Strategies / Mean reversion / Low EMA Dip Recovery

Low EMA Dip Recovery

The system buys 1 contract when the close drops below a 5-period EMA of lows divided by 1.02. It exits when the close rises above a 7-period EMA of highs, or later in the trade when it is above the entry price.

Mean reversionLong onlySwingNasdaq 100Daily

n/aProfit factor

5,848Net profit EUR

70.83%Win rate

144Trades

-2,418Max drawdown

40.61Avg trade

Best run of 46. Nasdaq 100, Daily, spread 3, from run sweeps:2026-10-04-NAS100-D-opt.tsv:59.

Entry rules, long

When flat, buy 1 contract at market if the close is below the 5-period EMA of lows divided by 1.02.

Exit rules

From the second bar after entry, the trade also closes when the close is above the entry price.

Test conditions

Period	Up to 2026-10-04
Instrument	Nasdaq 100, Daily
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	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nasdaq 100Best run	Daily	n/a	144	70.83	5,848 EUR	-2,418
USD/JPY	1 hour	n/a	1	100.00	15,900 USD	-0.00
Silver	30 min	n/a	47	87.23	12,931 USD	-6,359
Nikkei 225	4 hours	n/a	18	94.44	7,794 USD	-1,829
EUR/USD	Daily	n/a	5	80.00	7,125 USD	-6,960
Silver	2 min	n/a	10	90.00	3,898 USD	-1,993
Nikkei 225	1 hour	n/a	14	100.00	3,502 USD	-1,698
Dow Jones	4 hours	n/a	7	100.00	3,074 EUR	-1,542
Nikkei 225	30 min	n/a	11	100.00	2,854 USD	-1,053
Brent Crude	15 min	n/a	39	82.05	2,174 EUR	-471
Brent Crude	1 hour	n/a	49	81.63	2,077 EUR	-742
Brent Crude	4 hours	n/a	84	85.71	1,960 EUR	-1,558
FTSE 100	4 hours	n/a	24	79.17	1,769 EUR	-497
Brent Crude	30 min	n/a	49	87.76	1,682 EUR	-755
Dow Jones	1 hour	n/a	6	100.00	1,545 EUR	-97.10
USD/JPY	4 hours	n/a	1	100.00	1,470 USD	-860
US Crude Oil	15 min	n/a	58	89.66	1,444 EUR	-937
DAX 40	1 hour	n/a	20	90.00	1,233 EUR	-802
Brent Crude	10 min	n/a	18	77.78	1,110 EUR	-1,041
Dow Jones	15 min	n/a	5	100.00	1,059 EUR	-148
Gold	Daily	n/a	99	76.77	986 EUR	-240
Dow Jones	30 min	n/a	4	100.00	861 EUR	-140
FTSE 100	1 hour	n/a	15	93.33	744 EUR	-388
Nikkei 225	15 min	n/a	4	100.00	743 USD	-313
Nikkei 225	10 min	n/a	3	100.00	738 USD	-335
Gold	4 hours	n/a	22	77.27	545 EUR	-178
S&P 500	4 hours	n/a	25	88.00	436 EUR	-295
Nasdaq 100	15 min	n/a	7	71.43	428 EUR	-246
Nikkei 225	3 min	n/a	1	100.00	380 USD	-15.00
Gold	1 hour	n/a	6	100.00	243 EUR	-23.90
GBP/USD	1 hour	n/a	2	100.00	230 USD	-201
S&P 500	1 hour	n/a	11	81.82	191 EUR	-107
Dow Jones	3 min	n/a	1	100.00	137 EUR	-1.00
Dow Jones	10 min	n/a	1	100.00	130 EUR	-23.00
GBP/USD	10 min	n/a	1	100.00	127 USD	-0.20
Gold	10 min	n/a	3	100.00	126 EUR	-38.40
GBP/USD	4 hours	n/a	1	100.00	120 USD	-0.90
Gold	30 min	n/a	2	100.00	117 EUR	-13.30
DAX 40	3 min	n/a	1	100.00	116 EUR	-20.50
Nasdaq 100	3 min	n/a	1	100.00	106 EUR	-6.50
GBP/USD	15 min	n/a	1	100.00	95.30 USD	-18.00
Gold	15 min	n/a	2	100.00	86.50 EUR	-74.70
Gold	2 min	n/a	1	100.00	52.20 EUR	-7.10
S&P 500	30 min	n/a	5	80.00	49.88 EUR	-30.00
S&P 500	3 min	n/a	1	100.00	38.38 EUR	-4.12
S&P 500	10 min	n/a	1	100.00	6.62 EUR	-5.75

Charts

Results by run

Top 10 of 46 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Low EMA Dip Recovery
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE candle = 0

emalow = ExponentialAverage[5](low)
emahigh = ExponentialAverage[7](high)

15 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

EMA

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Low EMA Dip Recovery 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 46 market and timeframe combinations. The best run by trade count was Nasdaq 100, Daily, with 144 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,418 EUR at the tested position size, against a net result of 5,848 EUR.

Does it trade long, short or both?

It only takes long trades.

Reversal Pattern With Chaikin Volatility

Uses the same indicator.

2.26 PF · 6,872 trades

Volatility Spike Regression Long

Best run on the same market, Nasdaq 100.

1.22 PF · 1,850 trades

ATR Band

Also a mean reversion strategy.

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.com Stats Docs