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Strategies / Trend / Reversal Pattern With Directional Trend Index

Reversal Pattern With Directional Trend Index

Buys when a reversal pattern on closing prices and a Directional Trend Index both point up, and sells short when both point down. Any open position is closed when the two signals disagree.

TrendLong & shortSwingSilver1 hour
5.88Profit factor
582,711Net profit USD
52.10%Win rate
1,144Trades
-12,192Max drawdown
509Avg trade

Best run of 11. Silver, 1 hour, spread 2, from run pf:2026-10-12-SILVER-1h.tsv:26.

Entry rules, long

  2. Directional Trend Index state is +1 when DTI is below -45, and -1 when it is above 45.
  3. The system buys one contract at market when both states are +1.

Entry rules, short

  2. Directional Trend Index state is -1 when DTI is above 45, and +1 when it is below -45.
  3. The system sells short one contract at market when both states are -1.

Exit rules

  2. A short closes when the two states no longer both point down.
  3. There is no stop or target.

Test conditions

PeriodUp to 2026-10-12
InstrumentSilver, 1 hour
Spread2 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
SilverBest run1 hour5.88 1,14452.10582,711 USD-12,192
USD/JPY10 minn/a 1,89250.85176,220 USD-98,120
Dow JonesDailyn/a 13455.2216,756 EUR-8,145
Nikkei 2251 hourn/a 98251.2213,931 USD-9,745
Dow Jones4 hoursn/a 11261.6111,512 EUR-5,835
Brent CrudeDailyn/a 5552.739,287 EUR-3,739
US Crude OilDailyn/a 10255.885,437 EUR-4,855
GBP/USD4 hoursn/a 42353.664,896 USD-2,377
S&P 500Dailyn/a 13452.991,868 EUR-991
S&P 5001 hourn/a 1,27549.571,203 EUR-1,028
Gold4 hoursn/a 32450.31922 EUR-773

Charts

Results by run

Top 10 of 11 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal Pattern With Directional Trend Index
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0

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

59 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

EMASMAStochastic
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 Reversal Pattern With Directional Trend Index 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 11 market and timeframe combinations. The best run was Silver, 1 hour, with a profit factor of 5.88 over 1,144 trades.

How large was the drawdown?

The best run had a maximum drawdown of 12,192 USD at the tested position size, against a net result of 582,711 USD.

Does it trade long, short or both?

It trades both long and short.

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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