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Strategies / Pattern / Reversal Pattern With Inertia Filter

Reversal Pattern With Inertia Filter

Pairs a reversal state built from a stochastic with an Inertia state based on a 14-bar EMA of the Relative Volatility Index. It buys when both states are up, sells short when both are down, and closes any position when they disagree.

PatternLong & shortIntradayGold30 min
n/aProfit factor
1,316Net profit EUR
36.11%Win rate
4,494Trades
-1,095Max drawdown
0.29Avg trade

Best run of 7. Gold, 30 min, spread 0.6, from run sweeps:2026-10-11-GOLD-30m-opt.tsv:45.

Entry rules, long

  2. RVI is 100 times smoothed up divided by smoothed up plus down, with the 10-bar standard deviation of close split by direction.
  3. The Inertia state turns up when the 14-bar EMA of RVI is above 50.
  4. A long is opened at market when both states are up and no long position is open.

Entry rules, short

  2. The Inertia state turns down when the 14-bar EMA of RVI is below 50.
  3. A short is opened at market when both states are down and no short position is open.

Exit rules

  1. A position closes at market when the two states disagree.

Test conditions

PeriodUp to 2026-10-11
InstrumentGold, 30 minutes
Spread0.6 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
GoldBest run30 minn/a 4,49436.111,316 EUR-1,095
USD/JPYDailyn/a 27037.412,169,790 USD-760,110
Brent CrudeDailyn/a 11535.6511,631 EUR-9,480
DAX 401 hourn/a 2,45438.598,755 EUR-6,882
GoldDailyn/a 26935.692,208 EUR-1,264
Gold1 hourn/a 2,69534.101,491 EUR-1,031
Gold4 hoursn/a 69236.561,064 EUR-906

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0
ONCE nu = 0
ONCE nd = 0
ONCE rvi = 50

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

64 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

StochasticSMAEMAStandard Deviation
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 1,095 EUR is large next to the net profit of 1,316 EUR.
  • 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 Pattern With Inertia Filter 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 Gold, 30 minutes, with 4,494 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,095 EUR at the tested position size, against a net result of 1,316 EUR.

Does it trade long, short or both?

It trades both long and short.

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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.comStatsDocs