Strategies / Mean reversion / Oversold Bollinger Band RSI Reversal

Oversold Bollinger Band RSI Reversal

The strategy buys when the 14-period RSI is below 30 and the close is below the lower Bollinger Band calculated on typical price. It sells when the RSI rises above 70, with a 10% target and a 25% stop from the entry.

Mean reversionLong onlySwingNikkei 2254 hours

2.87Profit factor

50,924Net profit USD

75.42%Win rate

118Trades

-9,360Max drawdown

432Avg trade

Best run of 37. Nikkei 225, 4 hours, spread 10, from run pf:2026-10-05-NIKKEI-4h.tsv:4.

Entry rules, long

The 14-period RSI is below 30
No long position is currently open

Exit rules

A profit target sits 10% above the entry price
A stop loss sits 25% below the entry price

Test conditions

Period	Up to 2026-10-05
Instrument	Nikkei 225, 4 hours
Spread	10 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	2026-10-05

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nikkei 225Best run	4 hours	2.87	118	75.42	50,924 USD	-9,360
USD/JPY	1 hour	n/a	570	63.86	290,930 USD	-230,510
Dow Jones	Daily	n/a	64	82.81	36,886 EUR	-9,247
Nikkei 225	15 min	n/a	802	64.96	28,164 USD	-14,967
Nikkei 225	1 hour	n/a	405	66.42	26,533 USD	-8,706
Nikkei 225	30 min	n/a	784	65.56	22,908 USD	-9,693
EUR/USD	10 min	n/a	714	62.61	20,505 USD	-9,015
Nasdaq 100	4 hours	n/a	162	77.78	16,853 EUR	-4,281
DAX 40	4 hours	n/a	145	73.10	16,413 EUR	-5,079
Dow Jones	1 hour	n/a	191	71.73	15,671 EUR	-9,837
Silver	Daily	n/a	68	76.47	14,503 USD	-7,714
Dow Jones	10 min	n/a	780	65.77	11,150 EUR	-6,832
Dow Jones	30 min	n/a	346	67.34	11,004 EUR	-8,460
Nasdaq 100	Daily	n/a	48	85.42	10,732 EUR	-4,231
DAX 40	1 hour	n/a	493	66.94	9,444 EUR	-6,141
DAX 40	Daily	n/a	67	71.64	9,385 EUR	-4,988
EUR/USD	2 min	n/a	680	60.15	9,273 USD	-3,991
Nasdaq 100	15 min	n/a	811	64.12	7,319 EUR	-5,930
FTSE 100	Daily	n/a	44	84.09	6,960 EUR	-2,994
EUR/USD	5 min	n/a	705	62.41	6,818 USD	-5,090
Dow Jones	1 min	n/a	660	66.52	6,383 EUR	-3,456
DAX 40	30 min	n/a	817	65.61	6,192 EUR	-5,219
FTSE 100	4 hours	n/a	118	69.49	4,673 EUR	-2,690
FTSE 100	1 hour	n/a	456	67.54	4,516 EUR	-2,620
FTSE 100	10 min	n/a	744	68.41	4,098 EUR	-1,046
DAX 40	10 min	n/a	757	65.39	3,853 EUR	-3,747
S&P 500	4 hours	n/a	140	75.00	3,417 EUR	-1,298
FTSE 100	5 min	n/a	786	67.56	3,200 EUR	-890
FTSE 100	30 min	n/a	767	66.62	3,109 EUR	-2,668
S&P 500	30 min	n/a	777	66.80	2,558 EUR	-1,064
S&P 500	1 hour	n/a	547	68.92	2,498 EUR	-1,398
S&P 500	Daily	n/a	55	76.36	1,907 EUR	-1,305
S&P 500	10 min	n/a	770	65.84	1,835 EUR	-997
Gold	4 hours	n/a	137	59.85	1,312 EUR	-744
S&P 500	15 min	n/a	771	66.67	1,258 EUR	-1,079
GBP/USD	5 min	n/a	705	63.97	1,045 USD	-796
S&P 500	1 min	n/a	594	66.67	850 EUR	-332

Charts

Results by run

Top 10 of 37 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

myRsi = RSI[14](close)
mid = Average[20](typicalprice)
sd = STD[20](typicalprice) * SQRT(20 / 19)
lower = mid - 2 * sd

11 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

Longer historyRe-run on up to 1,000,000 barsNikkei 225 · 4 hours · older data 0.00 USD

Nikkei 225 had no history beyond the standard run, so both runs used 22,000 bars.

Nikkei 225 · 4 hours

Bars available	22,000
Net, standard 200,000-bar run	50,924.10 USD
Net, long run	50,924.10 USD
Net on the older data alone	0.00 USD

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 Bollinger Band RSI 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 37 market and timeframe combinations. The best run was Nikkei 225, 4 hours, with a profit factor of 2.87 over 118 trades.

How large was the drawdown?

The best run had a maximum drawdown of 9,360 USD at the tested position size, against a net result of 50,924 USD.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Rock Climber

Best run on the same market, Nikkei 225.

1.44 PF · 1,644 trades

Band Ratio Dip With RSI Exit

Also a mean reversion strategy.

2.87 PF · 136 trades

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

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.com Stats Docs

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