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Strategies / Momentum / Reversal Pattern With Chande Momentum Bands

Reversal Pattern With Chande Momentum Bands

The system buys when a stochastic-based close reversal agrees with a Chande Momentum Oscillator reading above 70, and sells short when the reversal is bearish and the reading is at or below -70. Positions close when the states no longer agree.

MomentumLong & shortIntradayNasdaq 10030 min
n/aProfit factor
6,901Net profit EUR
37.53%Win rate
2,731Trades
-3,860Max drawdown
2.53Avg trade

Best run of 7. Nasdaq 100, 30 min, spread 3, from run sweeps:2026-10-12-NAS100-30m-opt.tsv:37.

Entry rules, long

  1. The close is above the prior close, and the prior close was below the close 2 bars earlier.
  2. The Stochastic %K (14 periods) is below its 3-period SMA and above 50 on the same bar.
  4. When both states are bullish and no long is open, the system buys 1 contract at market.

Entry rules, short

  1. The close is below the prior close, and the prior close was above the close 2 bars earlier.
  2. The Stochastic %K (14 periods) is above its 3-period SMA and below 50 on the same bar.
  4. When both states are bearish and no short is open, the system sells 1 contract short at market.

Exit rules

  2. When they no longer agree, an open short is bought back at market.
  3. No stop or profit target is set.

Test conditions

PeriodUp to 2026-10-12
InstrumentNasdaq 100, 30 minutes
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
Nasdaq 100Best run30 minn/a 2,73137.536,901 EUR-3,860
Nikkei 225Dailyn/a 15142.3828,932 USD-14,486
Brent CrudeDailyn/a 7240.2816,701 EUR-5,315
Dow Jones4 hoursn/a 16741.9213,289 EUR-9,217
Brent Crude1 hourn/a 98438.415,257 EUR-4,898
GoldDailyn/a 18438.042,089 EUR-1,099
Gold1 hourn/a 1,70539.241,449 EUR-1,062

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal Pattern With Chande Momentum Bands
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE poscmo = 0

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

51 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

SMAStochastic
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 3,860 EUR is large next to the net profit of 6,901 EUR.

Questions

About this strategy

Can I run Reversal Pattern With Chande Momentum Bands 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 Nasdaq 100, 30 minutes, with 2,731 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,860 EUR at the tested position size, against a net result of 6,901 EUR.

Does it trade long, short or both?

It trades both long and short.

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

Copy trading on US indices is available to ProRealAlgos members as spots open.

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