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Strategies / Mean reversion / Oversold RSI Bounce Long

Oversold RSI Bounce Long

The strategy buys one contract when RSI(14) falls below 30. It closes the long when the close falls below the entry price times (1 - 0.01) or rises above it times (1 + 0.07).

Mean reversionLong onlySwingDow JonesDaily
1.73Profit factor
16,859Net profit EUR
25.14%Win rate
183Trades
-3,662Max drawdown
92.13Avg trade

Best run of 65. Dow Jones, Daily, spread 3, from run pf:2026-10-12-DOW30-D.tsv:19.

Entry rules, long

  1. When flat and RSI(14) is below 30, the strategy buys one contract at market.

Exit rules

  2. The long also closes at market when the close is above the entry price times (1 + 0.07).

Test conditions

PeriodUp to 2026-10-12
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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest runDaily1.73 18325.1416,859 EUR-3,662
DAX 4030 min1.30 55818.8219,541 EUR-4,339
DAX 401 hour1.28 61419.2218,726 EUR-4,032
USD/JPY30 minn/a 16020.62874,640 USD-245,620
USD/JPY1 hourn/a 24516.73506,150 USD-465,030
USD/JPY4 hoursn/a 17818.54449,430 USD-329,970
USD/JPY10 minn/a 6720.90433,580 USD-242,040
USD/JPY15 minn/a 8719.54424,990 USD-264,570
Nikkei 22530 minn/a 60918.8848,403 USD-9,791
Nikkei 22515 minn/a 38118.6445,975 USD-11,993
Nikkei 2251 hourn/a 52020.3842,794 USD-12,782
Nikkei 22510 minn/a 28518.2536,485 USD-11,366
Nikkei 2253 minn/a 13420.1533,914 USD-11,503
Nikkei 2255 minn/a 18119.8933,161 USD-13,260
Nikkei 2254 hoursn/a 27023.7024,373 USD-9,524
Nasdaq 10030 minn/a 58920.0321,312 EUR-7,233
Dow Jones15 minn/a 22917.9020,106 EUR-9,387
Dow Jones1 hourn/a 17019.4119,149 EUR-8,610
Nasdaq 1001 hourn/a 69519.2818,307 EUR-6,196
Nikkei 2252 minn/a 10518.1017,420 USD-14,445
Dow Jones30 minn/a 22417.8616,468 EUR-9,564
Nasdaq 10010 minn/a 28118.1515,947 EUR-5,785
Dow Jones10 minn/a 18616.6715,524 EUR-8,914
Dow Jones4 hoursn/a 10320.3915,087 EUR-8,994
Nasdaq 10015 minn/a 44617.7114,293 EUR-8,830
DAX 4015 minn/a 28718.4713,856 EUR-4,154
Dow Jones5 minn/a 6820.5912,542 EUR-8,349
Nasdaq 1005 minn/a 13119.0810,472 EUR-5,243
DAX 405 minn/a 8522.3510,064 EUR-3,954
DAX 4010 minn/a 19517.448,897 EUR-4,468
DAX 404 hoursn/a 35119.668,147 EUR-4,533
Nasdaq 1004 hoursn/a 32122.748,070 EUR-5,349
Brent Crude10 minn/a 67717.737,340 EUR-5,774
Brent Crude15 minn/a 94317.507,287 EUR-6,801
Brent Crude4 hoursn/a 28923.536,947 EUR-4,142
Nasdaq 100Dailyn/a 11432.466,389 EUR-3,374
Nasdaq 1003 minn/a 10217.656,238 EUR-5,962
S&P 50030 minn/a 40920.545,947 EUR-1,488
Nasdaq 1001 minn/a 3423.535,922 EUR-4,105
FTSE 10030 minn/a 37218.285,875 EUR-2,513
Dow Jones1 minn/a 1428.575,597 EUR-4,109
Nasdaq 1002 minn/a 4721.285,591 EUR-4,620
S&P 5001 hourn/a 48919.224,881 EUR-1,296
FTSE 1004 hoursn/a 23920.924,811 EUR-2,448
S&P 50015 minn/a 29518.984,718 EUR-1,653
FTSE 100Dailyn/a 13327.074,274 EUR-2,702
FTSE 10010 minn/a 9021.113,815 EUR-1,168
FTSE 1005 minn/a 4427.273,570 EUR-1,149
S&P 5004 hoursn/a 29621.963,374 EUR-1,247
FTSE 10015 minn/a 18318.033,266 EUR-1,947
S&P 50010 minn/a 17918.443,169 EUR-1,617
Gold30 minn/a 43418.892,961 EUR-1,189
S&P 5005 minn/a 7323.292,936 EUR-1,227
Gold15 minn/a 26120.312,835 EUR-1,328
Gold10 minn/a 19520.512,557 EUR-1,278
FTSE 1003 minn/a 3724.322,254 EUR-1,215
Gold5 minn/a 15121.192,131 EUR-1,569
Gold1 hourn/a 51419.072,024 EUR-1,242
FTSE 1002 minn/a 2524.001,528 EUR-1,242
S&P 500Dailyn/a 19823.231,493 EUR-686
S&P 5003 minn/a 5320.751,461 EUR-1,194
Gold4 hoursn/a 30820.131,394 EUR-934
S&P 5002 minn/a 1729.411,244 EUR-794
S&P 5001 minn/a 1233.331,145 EUR-396
GoldDailyn/a 18823.40696 EUR-380

Charts

Results by run

Top 10 of 65 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// Oversold RSI Bounce Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[14](close)

12 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

RSI
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Oversold RSI Bounce 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 65 market and timeframe combinations. The best run was Dow Jones, Daily, with a profit factor of 1.73 over 183 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,662 EUR at the tested position size, against a net result of 16,859 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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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