Strategies / Pattern / Outside Bar Slope Reversal

Outside Bar Slope Reversal

This idea trades a bullish or bearish outside bar when the 20-bar simple moving average is rising or falling. Positions close when a volatility measure or the 14-bar RSI of the typical price moves to an extreme.

PatternLong & shortIntradayEUR/USD3 min

n/aProfit factor

78,772Net profit USD

36.06%Win rate

5,144Trades

-55,042Max drawdown

15.31Avg trade

Best run of 5. EUR/USD, 3 min, spread 1, from run sweeps:2026-10-11-EURUSD-3m-opt.tsv:25.

Entry rules, long

The 20-bar simple moving average is at or above its value two bars earlier.
A long is opened only when no long position is already open.

Entry rules, short

The 20-bar simple moving average is below its value two bars earlier.
A short is opened only when no short position is already open.

Exit rules

The RSI(14) of the typical price is below 35 or above 65, and closes the position at market.
Exit orders are skipped on a bar that also opens a new position.

Test conditions

Period	Up to 2026-10-11
Instrument	EUR/USD, 3 minutes
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	2026-10-11

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
EUR/USDBest run	3 min	n/a	5,144	36.06	78,772 USD	-55,042
USD/JPY	Daily	n/a	362	54.14	182,390 USD	-135,520
EUR/USD	Daily	n/a	425	55.76	40,157 USD	-20,980
Gold	Daily	n/a	537	51.40	985 EUR	-325
Gold	4 hours	n/a	1,091	50.96	795 EUR	-535

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Outside Bar Slope Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 3 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE temp = 0
ONCE switch = 0

ma = Average[20](close)

41 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

SMARSI

Read this firstKnown weaknesses3 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 55,042 USD is large next to the net profit of 78,772 USD.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Outside Bar Slope 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 5 market and timeframe combinations. The best run by trade count was EUR/USD, 3 minutes, with 5,144 trades.

How large was the drawdown?

The best run had a maximum drawdown of 55,042 USD at the tested position size, against a net result of 78,772 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Slow MACD Slope

Best run on the same market, EUR/USD.

6.80 PF · 7,305 trades

Breakout Reversal

Also a pattern strategy.

n/a PF · 459 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