Strategies / Pattern / Reversal Pattern With Center of Gravity

Reversal Pattern With Center of Gravity

Pairs a reversal state built from a smoothed stochastic with a Center of Gravity state based on a 5-bar linear regression. It buys when both states are up, sells short when both are down, and closes any position when they disagree.

PatternLong & shortSwingDAX 404 hours

1.24Profit factor

22,819Net profit EUR

40.90%Win rate

1,951Trades

-4,192Max drawdown

11.70Avg trade

Best run of 33. DAX 40, 4 hours, spread 3, from run pf:2026-10-05-DAX40-4h.tsv:3.

Entry rules, long

The Center of Gravity state turns up when close is above the 5-bar linear regression value 14 bars back, plus 1% of close.
A long is opened at market when both states are up and no long position is open.

Entry rules, short

The Center of Gravity state turns down when close is below the same regression value minus 1% of close.
A short is opened at market when both states are down and no short position is open.

Exit rules

A position closes at market when the two states disagree.

Test conditions

Period	Up to 2026-10-05
Instrument	DAX 40, 4 hours
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
DAX 40Best run	4 hours	1.24	1,951	40.90	22,819 EUR	-4,192
Nasdaq 100	4 hours	1.20	2,079	39.39	16,499 EUR	-3,228
USD/JPY	30 min	1.17	1,434	39.54	641,800 USD	-153,540
USD/JPY	4 hours	n/a	1,553	39.60	566,720 USD	-217,440
USD/JPY	15 min	n/a	541	41.77	400,250 USD	-177,200
USD/JPY	10 min	n/a	384	41.93	328,960 USD	-148,330
USD/JPY	2 min	n/a	20	55.00	68,640 USD	-68,020
Nikkei 225	2 min	n/a	876	39.95	32,195 USD	-12,435
Nikkei 225	10 min	n/a	2,798	37.49	30,811 USD	-13,982
Nikkei 225	5 min	n/a	1,805	39.06	28,883 USD	-10,962
Silver	4 hours	n/a	2,466	34.63	24,362 USD	-15,436
Dow Jones	Daily	n/a	1,183	39.31	22,821 EUR	-10,296
Nikkei 225	3 min	n/a	1,267	38.20	21,069 USD	-9,236
Nikkei 225	4 hours	n/a	1,752	39.33	17,811 USD	-14,569
Nikkei 225	1 min	n/a	458	39.74	15,390 USD	-9,331
Dow Jones	1 hour	n/a	1,272	37.19	12,078 EUR	-11,871
Dow Jones	4 hours	n/a	622	38.91	9,043 EUR	-8,955
Nasdaq 100	5 min	n/a	1,159	39.09	8,263 EUR	-5,516
Dow Jones	10 min	n/a	1,385	36.82	7,753 EUR	-7,548
Nasdaq 100	15 min	n/a	3,663	37.24	7,667 EUR	-6,307
Nasdaq 100	10 min	n/a	2,600	37.38	7,014 EUR	-6,706
DAX 40	30 min	n/a	4,723	36.52	6,411 EUR	-5,506
Nasdaq 100	3 min	n/a	775	39.87	5,978 EUR	-3,521
DAX 40	Daily	n/a	1,250	37.12	5,811 EUR	-5,120
DAX 40	5 min	n/a	635	40.00	4,565 EUR	-3,199
Nasdaq 100	2 min	n/a	400	36.75	4,287 EUR	-4,009
Gold	4 hours	n/a	1,976	37.65	2,962 EUR	-877
S&P 500	Daily	n/a	1,214	38.30	2,041 EUR	-1,574
Gold	10 min	n/a	1,816	39.76	1,813 EUR	-850
Gold	Daily	n/a	1,155	36.71	1,612 EUR	-1,595
Gold	5 min	n/a	1,239	38.42	1,419 EUR	-659
Gold	15 min	n/a	2,418	37.43	1,053 EUR	-812
S&P 500	1 min	n/a	42	50.00	502 EUR	-336

Charts

Results by run

Top 10 of 33 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

// ==============================================================
// Reversal Pattern With Center of Gravity
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE poscog = 0
ONCE sincebad = 1000

ll = lowest[4](low)
hh = highest[4](high)

60 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

Linear RegressionSMAStochastic

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 Reversal Pattern With Center of Gravity 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 33 market and timeframe combinations. The best run was DAX 40, 4 hours, with a profit factor of 1.24 over 1,951 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,192 EUR at the tested position size, against a net result of 22,819 EUR.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Heikin Ashi Color Flip

Best run on the same market, DAX 40.

1.12 PF · 3,692 trades

Green Candle Reversal Long

Also a pattern strategy.

1.25 PF · 1,087 trades

Get the full rules, the complete code and the ProRealAlgos portfolio as a member.

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