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Strategies / Pattern / Reversal 123 RSI Pattern

Reversal 123 RSI Pattern

The strategy buys when a short-term reversal pattern in a stochastic reading lines up with an RSI extreme on the bullish side, and sells short on the mirror setup. An open position closes when the two conditions no longer agree.

PatternLong & shortIntradayUSD/JPY10 min
n/aProfit factor
385,110Net profit USD
37.99%Win rate
2,182Trades
-150,940Max drawdown
176Avg trade

Best run of 7. USD/JPY, 10 min, spread 1, from run sweeps:2026-10-11-USDJPY-10m-opt.tsv:19.

Entry rules, long

  2. The RSI state is +1 after the 12-bar RSI is above 70, until it drops below 30.
  3. A long position opens at market when both states are +1 and no long position is open.

Entry rules, short

  2. The RSI state is -1 after the 12-bar RSI is below 30, until it rises above 70.
  3. A short position opens at market when both states are -1 and no short position is open.

Exit rules

  1. An open position closes at market when the two states no longer agree.

Test conditions

PeriodUp to 2026-10-11
InstrumentUSD/JPY, 10 minutes
Spread1 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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run10 minn/a 2,18237.99385,110 USD-150,940
USD/JPYDailyn/a 14045.712,380,230 USD-629,900
Nikkei 225Dailyn/a 11539.1359,301 USD-11,540
Brent CrudeDailyn/a 5837.9315,047 EUR-5,690
Gold1 hourn/a 1,39538.851,835 EUR-1,319
GoldDailyn/a 13938.131,759 EUR-1,129
Gold30 minn/a 2,15537.771,722 EUR-842

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal 123 RSI Pattern
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE stoch = 50
ONCE posrev = 0
ONCE posrsi = 0

hh = highest[14](high)
ll = lowest[14](low)

39 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

RSISMAStochastic
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Reversal 123 RSI Pattern 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 7 market and timeframe combinations. The best run by trade count was USD/JPY, 10 minutes, with 2,182 trades.

How large was the drawdown?

The best run had a maximum drawdown of 150,940 USD at the tested position size, against a net result of 385,110 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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Breakout Reversal

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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.comStatsDocs