Strategies / Mean reversion / Lower Band RSI Dip Long

Lower Band RSI Dip Long

Buys when the close drops to or below the lower Bollinger Band or when the 5-bar average of RSI(14) falls below 45. The long is closed at market as soon as the close is above the entry price.

Mean reversionLong onlySwingS&P 5004 hours

258.72Profit factor

5,036Net profit EUR

90.18%Win rate

662Trades

-1,237Max drawdown

7.61Avg trade

Best run of 45. S&P 500, 4 hours, spread 1, from run pf:2026-10-12-USA500-4h.tsv:8.

Entry rules, long

The close is at or below the lower band, or the 5-bar average of RSI(14) is below 45.
A long is opened at market when either condition is true and no long position is open.

Exit rules

The long is closed at market as soon as the close is above the entry price.

Test conditions

Period	Up to 2026-10-12
Instrument	S&P 500, 4 hours
Spread	1 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
S&P 500Best run	4 hours	258.72	662	90.18	5,036 EUR	-1,237
S&P 500	Daily	119.76	380	83.68	5,083 EUR	-1,066
FTSE 100	Daily	32.78	358	91.06	11,635 EUR	-2,645
Silver	1 hour	22.88	272	83.82	562,141 USD	-28,085
DAX 40	Daily	16.18	315	90.16	18,046 EUR	-4,443
USD/JPY	1 hour	n/a	673	91.98	556,550 USD	-474,010
USD/JPY	30 min	n/a	869	91.25	473,250 USD	-257,130
Nikkei 225	4 hours	n/a	460	92.39	45,730 USD	-10,347
Dow Jones	Daily	n/a	476	89.71	36,409 EUR	-9,813
Nikkei 225	1 hour	n/a	939	87.65	35,351 USD	-11,125
Nikkei 225	30 min	n/a	1,127	80.66	28,624 USD	-11,377
Dow Jones	15 min	n/a	1,468	90.60	22,799 EUR	-11,243
Dow Jones	4 hours	n/a	263	95.44	21,922 EUR	-10,908
Dow Jones	30 min	n/a	988	93.12	21,802 EUR	-11,008
Nasdaq 100	4 hours	n/a	775	90.06	21,707 EUR	-5,550
Dow Jones	1 hour	n/a	656	95.27	21,454 EUR	-11,220
Nikkei 225	15 min	n/a	823	81.53	20,024 USD	-12,428
DAX 40	4 hours	n/a	595	95.13	19,053 EUR	-5,508
Nasdaq 100	1 hour	n/a	1,557	79.45	18,501 EUR	-5,780
Nikkei 225	10 min	n/a	728	81.18	16,716 USD	-12,347
Silver	Daily	n/a	87	83.91	15,768 USD	-13,852
Nasdaq 100	Daily	n/a	219	83.11	15,518 EUR	-5,162
Dow Jones	10 min	n/a	1,235	86.07	14,702 EUR	-8,183
Nasdaq 100	15 min	n/a	1,658	79.61	14,447 EUR	-6,147
Nikkei 225	5 min	n/a	689	82.73	14,243 USD	-12,679
DAX 40	1 hour	n/a	1,056	87.03	14,072 EUR	-5,717
Brent Crude	4 hours	n/a	252	96.83	13,751 EUR	-6,245
Nasdaq 100	30 min	n/a	2,372	62.98	13,705 EUR	-5,999
Nikkei 225	3 min	n/a	941	76.09	13,553 USD	-12,836
Dow Jones	5 min	n/a	1,322	82.07	11,038 EUR	-8,227
US Crude Oil	4 hours	n/a	188	94.68	10,713 EUR	-9,367
DAX 40	15 min	n/a	1,275	84.63	9,212 EUR	-5,701
Nasdaq 100	10 min	n/a	1,175	81.87	9,203 EUR	-6,162
DAX 40	30 min	n/a	1,830	73.61	8,601 EUR	-6,383
FTSE 100	4 hours	n/a	518	91.70	6,838 EUR	-2,736
Nasdaq 100	5 min	n/a	1,213	75.68	6,652 EUR	-5,758
DAX 40	10 min	n/a	1,166	78.90	5,963 EUR	-4,413
FTSE 100	1 hour	n/a	868	86.41	5,797 EUR	-3,043
S&P 500	1 hour	n/a	1,597	80.03	4,316 EUR	-1,285
S&P 500	30 min	n/a	2,477	66.94	3,597 EUR	-1,277
Nasdaq 100	2 min	n/a	906	75.17	3,556 EUR	-3,511
S&P 500	15 min	n/a	1,866	74.87	3,205 EUR	-1,303
FTSE 100	10 min	n/a	1,204	71.10	2,563 EUR	-1,200
S&P 500	10 min	n/a	1,436	70.96	2,011 EUR	-1,292
Gold	4 hours	n/a	368	94.57	1,382 EUR	-1,153

Charts

Results by run

Top 10 of 45 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Lower Band RSI Dip Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[20](close)
dev = 2.2 * STD[20](close)
lower = basis - dev
myRsi = RSI[14](close)
rsismooth = Average[5](myRsi)

12 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

Bollinger BandsRSISMAStandard Deviation

Read this firstKnown weaknesses2 points

The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Lower Band RSI Dip Long 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 45 market and timeframe combinations. The best run was S&P 500, 4 hours, with a profit factor of 258.72 over 662 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,237 EUR at the tested position size, against a net result of 5,036 EUR.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

CCI Sign With EMA Alignment

Best run on the same market, S&P 500.

1.23 PF · 1,253 trades

RSI Recovery With Trend Filter

Also a mean reversion strategy.

27.31 PF · 310 trades

See how ProRealAlgos combines strategies like this into one automated portfolio.

Copy trading on US indices is available to ProRealAlgos members as spots open.

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