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 / Mean reversion / Oversold Band Reversion Long

Oversold Band Reversion Long

The system buys when price closes below the lower Bollinger Band while RSI is under 30. It sells once the close returns to the 10-period average, and no stop loss is set.

Mean reversionLong onlyIntradaySilver1 min
1.25Profit factor
9,023Net profit USD
65.54%Win rate
1,210Trades
-1,977Max drawdown
7.46Avg trade

Best run of 15. Silver, 1 min, spread 2, from run pf:2026-10-12-SILVER-1m.tsv:1.

Entry rules, long

  1. After bar 15, the close is below the lower Bollinger Band (10 periods, 2 standard deviations) and RSI (14) is below 30.

Exit rules

  2. No stop loss is set.

Test conditions

PeriodUp to 2026-10-12
InstrumentSilver, 1 minute
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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run1 min1.25 1,21065.549,023 USD-1,977
Dow JonesDailyn/a 6467.1913,915 EUR-4,536
Nikkei 225Dailyn/a 7668.4210,621 USD-5,179
Nikkei 2254 hoursn/a 16561.8210,162 USD-7,137
Dow Jones30 minn/a 70962.066,513 EUR-5,785
SilverDailyn/a 8767.826,094 USD-5,317
Nasdaq 100Dailyn/a 4571.115,911 EUR-1,505
Nasdaq 1004 hoursn/a 22367.265,566 EUR-1,624
FTSE 100Dailyn/a 6572.313,011 EUR-2,268
US Crude Oil4 hoursn/a 18663.982,502 EUR-2,353
Dow Jones2 minn/a 1,18964.092,198 EUR-1,388
S&P 5004 hoursn/a 21966.211,661 EUR-661
S&P 500Dailyn/a 6467.19908 EUR-469
Gold2 minn/a 1,21265.51760 EUR-340
GoldDailyn/a 9061.11398 EUR-192

Charts

Results by run

Top 10 of 15 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Oversold Band Reversion Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 1 minute
// ==============================================================

DEFPARAM CumulateOrders = false

basis = Average[10](close)
dev = 2 * STD[10](close)
lower = basis - dev
myRsi = RSI[14](close)

13 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 BandsSMAStandard DeviationRSI
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Oversold Band Reversion 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 15 market and timeframe combinations. The best run was Silver, 1 minute, with a profit factor of 1.25 over 1,210 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,976 USD at the tested position size, against a net result of 9,023 USD.

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

SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 trades

Turtle Soup

Also a mean reversion strategy.

1.26 PF · 867 trades

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

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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