Join waitlist
The books... not free though
10 Strategier Som Slår BörsenSvenska10 Strategier Som Slår Börsen10 Strategies That Beat the MarketEnglish10 Strategies That Beat the MarketProRealTime Coding Made SimpleEnglishProRealTime Coding Made Simple
600+StatisticsMarket statistics and edges1,327StrategiesBacktested strategy library18Research papersThe study behind the algos301DocsProBuilder coding reference27Algo development programCourses and lessons24Everything here feeds the 24 algosSee the algos
Strategies / Pattern / Lower Wick EMA Retest Long

Lower Wick EMA Retest Long

The strategy buys a green bar that dips to touch the 21-period EMA and closes back above it, with a lower wick of at least 50% of the bar range and RSI(14) above 50. Each trade uses ATR-based stop and target levels.

PatternLong onlySwingDow JonesDaily
n/aProfit factor
4,964Net profit EUR
39.89%Win rate
188Trades
-1,705Max drawdown
26.40Avg trade

Best run of 3. Dow Jones, Daily, spread 3, from run sweeps:2026-10-11-DOW30-D-opt.tsv:141.

Entry rules, long

  2. The bar's low is at or below the 21-period EMA, and its close is above the 21-period EMA
  3. The lower wick is at least 50% of the bar's range
  4. RSI(14) is above 50

Exit rules

  2. The target is 1.5 times the 21-period ATR above the fill price
  3. A same-direction signal while long resets the stop and target to the new signal levels

Test conditions

PeriodUp to 2026-10-11
InstrumentDow Jones, Daily
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
Dow JonesBest runDailyn/a 18839.894,964 EUR-1,705
DAX 40Dailyn/a 12146.283,830 EUR-2,347
Dow Jones4 hoursn/a 15940.252,927 EUR-1,552

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Lower Wick EMA Retest Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ema = ExponentialAverage[21](close)
myAtr = AverageTrueRange[21](close)
myRsi = RSI[14](close)

lowerwick = MIN(open, close) - low
wickperc = (lowerwick / (high - low + 0.00001)) * 100

18 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

EMAATRRSI
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 Lower Wick EMA Retest 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 3 market and timeframe combinations. The best run by trade count was Dow Jones, Daily, with 188 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,705 EUR at the tested position size, against a net result of 4,964 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

Turtle Trade

Best run on the same market, Dow Jones.

2.42 PF · 6,324 trades

Breakout Reversal

Also a pattern strategy.

n/a PF · 459 trades

Get the full rules, the complete code and the ProRealAlgos portfolio as a member.

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.comStatsDocs