Strategies / Pattern / PPO Pivot Divergence Reversal

PPO Pivot Divergence Reversal

The strategy looks for price pivots that diverge from PPO pivots, buying on bullish divergence and selling short on bearish divergence. Positions use a 2% stop and 4% target, and an opposite signal reverses the trade.

PatternLong & shortIntradaySilver3 min

n/aProfit factor

11,168Net profit USD

43.88%Win rate

98Trades

-5,450Max drawdown

114Avg trade

Best run of 21. Silver, 3 min, spread 2, from run sweeps:2026-10-04-SILVER-3m-opt.tsv:15.

Entry rules, long

PPO uses EMA 12 and EMA 26, and pivots use 5 bars on each side, confirmed 5 bars late.
The signal fires on the confirmation bar, and the strategy buys one contract when flat.

Entry rules, short

Bearish divergence: the latest price pivot high is above the previous one, while the matching PPO pivot high is below the previous one.

Exit rules

An opposite signal reverses the position.

Test conditions

Period	Up to 2026-10-04
Instrument	Silver, 3 minutes
Spread	2 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	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
SilverBest run	3 min	n/a	98	43.88	11,168 USD	-5,450
USD/JPY	1 hour	n/a	55	47.27	458,760 USD	-213,260
USD/JPY	15 min	n/a	61	47.54	361,130 USD	-189,560
USD/JPY	Daily	n/a	10	40.00	144,600 USD	-119,000
EUR/USD	1 hour	n/a	71	42.25	30,113 USD	-17,653
EUR/USD	15 min	n/a	64	48.44	20,468 USD	-13,817
Nikkei 225	5 min	n/a	83	45.78	12,908 USD	-12,475
Dow Jones	3 min	n/a	85	56.47	9,788 EUR	-4,543
Nasdaq 100	5 min	n/a	90	48.89	6,243 EUR	-3,975
GBP/USD	30 min	n/a	79	45.57	5,024 USD	-2,096
Nasdaq 100	2 min	n/a	72	51.39	4,783 EUR	-4,165
Brent Crude	1 min	n/a	81	50.62	4,031 EUR	-1,709
S&P 500	3 min	n/a	73	54.79	2,332 EUR	-558
US Crude Oil	30 min	n/a	81	40.74	2,154 EUR	-1,341
Dow Jones	4 hours	n/a	3	66.67	2,077 EUR	-1,851
FTSE 100	30 min	n/a	78	44.87	2,056 EUR	-1,343
FTSE 100	15 min	n/a	71	43.66	1,922 EUR	-1,698
FTSE 100	1 hour	n/a	53	45.28	1,623 EUR	-1,101
S&P 500	10 min	n/a	63	42.86	1,472 EUR	-663
Gold	2 min	n/a	68	50.00	1,022 EUR	-669
S&P 500	Daily	n/a	21	28.57	297 EUR	-198

Charts

Results by run

Top 10 of 21 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// PPO Pivot Divergence Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 3 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE prevpl = 0
ONCE prevppol = 0
ONCE lastpl = 0
ONCE lastppol = 0
ONCE okprevl = 0
ONCE oklastl = 0
ONCE prevph = 0
ONCE prevppoh = 0
ONCE lastph = 0
ONCE lastppoh = 0
ONCE okprevh = 0
ONCE oklasth = 0

fast = ExponentialAverage[12](close)
slow = ExponentialAverage[26](close)
ppo = (fast - slow) / slow * 100

bullsig = 0
bearsig = 0

62 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

EMA

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The best run has only 98 trades, which is a small sample to judge it on.

Questions

About this strategy

Can I run PPO Pivot Divergence 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 21 market and timeframe combinations. The best run by trade count was Silver, 3 minutes, with 98 trades.

How large was the drawdown?

The best run had a maximum drawdown of 5,450 USD at the tested position size, against a net result of 11,168 USD.

Does it trade long, short or both?

It trades both long and short.

Reversal Pattern With Chaikin Volatility

Uses the same indicator.

2.26 PF · 6,872 trades

SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 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