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Strategies / Mean reversion / Lower Band RSI Mean Reversion

Lower Band RSI Mean Reversion

Buys when the close stays at or below the lower band for a run of bars and RSI is at or below 40. Closes the long once the close returns to the middle band with RSI at or above 40.

Mean reversionLong onlyIntradayFTSE 10010 min
n/aProfit factor
107Net profit EUR
66.67%Win rate
9Trades
-71.90Max drawdown
11.87Avg trade

Best run of 24. FTSE 100, 10 min, spread 2, from run sweeps:2026-10-04-FTSE100-10m-opt.tsv:6.

Entry rules, long

  2. The 14 period RSI is at or below 40.
  3. The close has stayed at or below the lower band for at least 9 bars after the first such bar.

Exit rules

  1. The close is at or above the middle band (20 period average) and RSI is at or above 40, closing the long.

Test conditions

PeriodUp to 2026-10-04
InstrumentFTSE 100, 10 minutes
Spread2 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 tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
FTSE 100Best run10 minn/a 966.67107 EUR-71.90
USD/JPY10 minn/a 785.7111,000 USD-5,610
Nikkei 2251 hourn/a 366.671,627 USD-871
Nasdaq 10015 minn/a 560.00678 EUR-150
Silver30 minn/a 3100.00676 USD-233
Dow Jones15 minn/a 785.71588 EUR-419
GBP/USD30 minn/a 3100.00500 USD-207
Silver2 minn/a 4100.00469 USD-181
Dow Jones3 minn/a 7100.00461 EUR-84.90
Nikkei 2255 minn/a 650.00458 USD-438
Silver5 minn/a 3100.00407 USD-252
Nikkei 2251 minn/a 2100.00353 USD-57.70
Nasdaq 1002 minn/a 560.00329 EUR-151
FTSE 1001 hourn/a 580.00291 EUR-174
Nasdaq 1003 minn/a 475.00256 EUR-158
EUR/USD2 minn/a 5100.00178 USD-79.00
DAX 4030 minn/a 2100.00141 EUR-96.00
GBP/USD1 hourn/a 1100.0075.40 USD-9.00
S&P 50015 minn/a 5100.0069.98 EUR-32.50
DAX 402 minn/a 1100.0059.10 EUR-8.10
S&P 5003 minn/a 757.1456.52 EUR-45.12
Gold2 minn/a 2100.0055.20 EUR-45.70
Nasdaq 1001 hourn/a 2100.0050.50 EUR-39.60
Gold15 minn/a 366.6710.40 EUR-6.40

Charts

Results by run

Top 10 of 24 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Lower Band RSI Mean Reversion
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE zone = 0
ONCE duration = 0

mid = Average[20](close)
sd = STD[20](close)
upper = mid + 2 * sd
lower = mid - 2 * sd
myRsi = RSI[14](close)

prevzone = zone

23 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.

Indicators used

Bollinger BandsRSI
Read this firstKnown weaknesses4 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The best run has only 9 trades, which is a small sample to judge it on.
  • The maximum drawdown of 72 EUR is large next to the net profit of 107 EUR.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Lower Band RSI Mean 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 24 market and timeframe combinations. The best run by trade count was FTSE 100, 10 minutes, with 9 trades.

How large was the drawdown?

The best run had a maximum drawdown of 72 EUR at the tested position size, against a net result of 107 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

Strategies like this one

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

DAX Survivor

Best run on the same market, FTSE 100.

1.17 PF · 1,514 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.comStatsDocs