Strategies / Momentum / Reversal Pattern With Dynamic Momentum Index

Reversal Pattern With Dynamic Momentum Index

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

MomentumLong & shortIntradayUSD/JPY10 min

1.23Profit factor

533,030Net profit USD

42.12%Win rate

1,206Trades

-91,360Max drawdown

442Avg trade

Best run of 33. USD/JPY, 10 min, spread 1, from run pf:2026-10-12-USDJPY-10m.tsv:7.

Entry rules, long

Dynamic Momentum state is +1 when its adaptive RSI(14) is above 30, and -1 otherwise.
The system buys one contract at market when both states are +1.

Entry rules, short

Dynamic Momentum state is -1 when its adaptive RSI(14) is 30 or below, and +1 when it is above 30.
The system sells short one contract at market when both states are -1.

Exit rules

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

Test conditions

Period	Up to 2026-10-13
Instrument	USD/JPY, 10 minutes
Spread	1 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	2026-10-13

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	10 min	1.23	1,206	42.12	533,030 USD	-91,360
USD/JPY	Daily	n/a	312	47.44	694,380 USD	-620,100
USD/JPY	30 min	n/a	1,209	41.27	590,000 USD	-265,430
USD/JPY	15 min	n/a	1,216	41.12	378,370 USD	-190,160
Nikkei 225	Daily	n/a	67	44.78	48,515 USD	-10,541
Nikkei 225	1 hour	n/a	578	44.46	36,197 USD	-9,318
Dow Jones	Daily	n/a	89	51.69	29,216 EUR	-9,474
Dow Jones	4 hours	n/a	65	56.92	21,762 EUR	-8,205
Nikkei 225	4 hours	n/a	160	43.75	21,601 USD	-9,005
Dow Jones	15 min	n/a	1,100	40.09	18,835 EUR	-10,182
Nikkei 225	10 min	n/a	1,244	39.23	18,621 USD	-13,707
Nikkei 225	15 min	n/a	1,159	40.81	17,335 USD	-14,166
Nasdaq 100	Daily	n/a	82	54.88	15,876 EUR	-5,632
DAX 40	30 min	n/a	1,375	43.13	15,494 EUR	-4,945
DAX 40	Daily	n/a	73	56.16	14,264 EUR	-6,275
Nasdaq 100	30 min	n/a	1,819	41.45	12,348 EUR	-3,704
Nasdaq 100	1 hour	n/a	844	44.79	12,120 EUR	-5,422
Nasdaq 100	4 hours	n/a	208	48.08	11,932 EUR	-5,198
Brent Crude	Daily	n/a	32	40.62	11,909 EUR	-6,949
Dow Jones	30 min	n/a	552	42.21	11,860 EUR	-9,741
Nasdaq 100	15 min	n/a	1,427	43.10	10,864 EUR	-4,281
Dow Jones	1 hour	n/a	297	42.09	10,575 EUR	-7,549
Dow Jones	5 min	n/a	1,433	38.73	9,305 EUR	-6,508
DAX 40	1 hour	n/a	817	42.47	7,691 EUR	-7,054
DAX 40	4 hours	n/a	190	43.16	7,615 EUR	-5,385
Nasdaq 100	10 min	n/a	1,438	40.82	6,797 EUR	-5,577
DAX 40	15 min	n/a	1,408	41.41	4,739 EUR	-4,068
S&P 500	Daily	n/a	167	44.31	4,702 EUR	-1,273
Gold	Daily	n/a	116	43.97	2,906 EUR	-1,387
S&P 500	1 hour	n/a	1,286	41.29	2,888 EUR	-898
Gold	4 hours	n/a	220	43.64	2,000 EUR	-1,012
S&P 500	4 hours	n/a	229	48.91	1,959 EUR	-985
Gold	1 hour	n/a	1,567	41.86	1,761 EUR	-1,324

Charts

Results by run

Top 10 of 33 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal Pattern With Dynamic Momentum Index
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE posdmi = 0
ONCE sincebad = 1000
ONCE xdmi = 30

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

73 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

RSIStandard DeviationStochasticSMAWilder Average

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 Dynamic Momentum 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 33 market and timeframe combinations. The best run was USD/JPY, 10 minutes, with a profit factor of 1.23 over 1,206 trades.

How large was the drawdown?

The best run had a maximum drawdown of 91,360 USD at the tested position size, against a net result of 533,030 USD.

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

EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

1.09 PF · 6,194 trades

RSI Extended Streak Entry

Also a momentum strategy.

1.23 PF · 954 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