Strategies / Mean reversion / Oversold RSI Dip Below Average

Oversold RSI Dip Below Average

Buys when the 14-period RSI is below 30 and the close is below 0.970 times its 30-period simple moving average. Sells when RSI rises above 70, with a 5% target and 8% stop.

Mean reversionLong onlySwingDow JonesDaily

2.11Profit factor

25,752Net profit EUR

72.57%Win rate

113Trades

-5,328Max drawdown

228Avg trade

Best run of 43. Dow Jones, Daily, spread 3, from run pf:2026-10-05-DOW30-D.tsv:11.

Entry rules, long

The close is below 0.970 times the 30-period simple moving average

Exit rules

A profit target sits 5% above the entry price
A stop loss sits 8% below the entry price

Test conditions

Period	Up to 2026-10-05
Instrument	Dow Jones, Daily
Spread	3 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
Dow JonesBest run	Daily	2.11	113	72.57	25,752 EUR	-5,328
USD/JPY	1 hour	n/a	9	88.89	294,000 USD	-41,500
USD/JPY	30 min	n/a	2	100.00	50,130 USD	-15,870
Nikkei 225	4 hours	n/a	90	75.56	32,017 USD	-7,634
Nikkei 225	1 hour	n/a	49	71.43	17,173 USD	-5,946
Nikkei 225	30 min	n/a	34	82.35	14,952 USD	-4,340
Nikkei 225	15 min	n/a	20	85.00	14,573 USD	-2,840
Silver	15 min	n/a	93	68.82	13,286 USD	-9,739
Nikkei 225	10 min	n/a	12	91.67	10,991 USD	-3,471
DAX 40	Daily	n/a	132	71.97	8,848 EUR	-3,269
Nasdaq 100	4 hours	n/a	112	71.43	8,829 EUR	-4,609
Dow Jones	4 hours	n/a	21	76.19	8,713 EUR	-4,875
Dow Jones	15 min	n/a	11	72.73	7,248 EUR	-2,262
Nasdaq 100	1 hour	n/a	86	75.58	7,118 EUR	-3,428
Nasdaq 100	30 min	n/a	42	76.19	6,082 EUR	-2,422
FTSE 100	Daily	n/a	88	69.32	5,169 EUR	-2,020
US Crude Oil	10 min	n/a	71	70.42	4,986 EUR	-1,743
US Crude Oil	15 min	n/a	169	67.46	4,485 EUR	-2,139
FTSE 100	4 hours	n/a	69	69.57	3,911 EUR	-2,088
Nasdaq 100	Daily	n/a	85	70.59	3,687 EUR	-3,650
DAX 40	1 hour	n/a	82	67.07	3,644 EUR	-3,060
Brent Crude	10 min	n/a	56	60.71	3,467 EUR	-1,801
DAX 40	30 min	n/a	30	80.00	3,237 EUR	-2,397
FTSE 100	1 hour	n/a	51	76.47	3,123 EUR	-1,703
Nikkei 225	5 min	n/a	5	80.00	2,915 USD	-1,950
Dow Jones	10 min	n/a	2	100.00	2,463 EUR	-902
DAX 40	3 min	n/a	2	100.00	1,393 EUR	-219
S&P 500	Daily	n/a	111	67.57	1,274 EUR	-639
FTSE 100	30 min	n/a	16	68.75	1,186 EUR	-908
S&P 500	4 hours	n/a	69	66.67	1,181 EUR	-804
DAX 40	5 min	n/a	2	100.00	1,142 EUR	-220
Gold	Daily	n/a	90	70.00	952 EUR	-396
S&P 500	30 min	n/a	22	72.73	921 EUR	-491
S&P 500	1 hour	n/a	53	69.81	897 EUR	-700
Dow Jones	3 min	n/a	1	100.00	828 EUR	-288
S&P 500	15 min	n/a	11	72.73	818 EUR	-256
FTSE 100	15 min	n/a	7	71.43	682 EUR	-491
GBP/USD	15 min	n/a	1	100.00	520 USD	-120
S&P 500	10 min	n/a	3	100.00	504 EUR	-139
FTSE 100	5 min	n/a	2	100.00	444 EUR	-110
FTSE 100	3 min	n/a	2	100.00	407 EUR	-120
GBP/USD	10 min	n/a	1	100.00	339 USD	-88.30
S&P 500	3 min	n/a	1	100.00	134 EUR	-56.00

Charts

Results by run

Top 10 of 43 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

myRsi = RSI[14](close)
smaoffset = Average[30](close) * 0.970

15 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

RSISMA

Longer historyRe-run on up to 1,000,000 barsDow Jones · Daily · older data 0.00 EUR

Dow Jones had no history beyond the standard run, so both runs used 14,000 bars.

Dow Jones · Daily

Bars available	14,000
Net, standard 200,000-bar run	25,752.10 EUR
Net, long run	25,752.10 EUR
Net on the older data alone	0.00 EUR

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 RSI Dip Below Average 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 43 market and timeframe combinations. The best run was Dow Jones, Daily, with a profit factor of 2.11 over 113 trades.

How large was the drawdown?

The best run had a maximum drawdown of 5,328 EUR at the tested position size, against a net result of 25,752 EUR.

Does it trade long, short or both?

It only takes long trades.

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

Cumulative RSI Pullback

Also a mean reversion strategy.

2.11 PF · 533 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