Strategies / Momentum / Reversal With Ergodic MDI

Reversal With Ergodic MDI

Buys when a reversal pattern on closing prices and the Ergodic MDI line above its signal line both point up, and sells short when both point down. Any open position is closed when the two signals disagree.

MomentumLong & shortSwingGold4 hours

n/aProfit factor

1,359Net profit EUR

37.31%Win rate

1,568Trades

-693Max drawdown

0.87Avg trade

Best run of 4. Gold, 4 hours, spread 0.6, from run sweeps:2026-10-11-GOLD-4h-opt.tsv:176.

Entry rules, long

MDI state is +1 when the Ergodic MDI line is above its signal line, and -1 when it is below.
The MDI line smooths close minus its 32-period EMA with two 5-period EMAs.
The system buys one contract at market when both states are +1.

Entry rules, short

MDI state is -1 when the Ergodic MDI line is below its signal line.
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 2026-10-11
Instrument	Gold, 4 hours
Spread	0.6 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	2026-10-11

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
GoldBest run	4 hours	n/a	1,568	37.31	1,359 EUR	-693
USD/JPY	Daily	n/a	661	36.31	2,154,250 USD	-552,350
Nikkei 225	Daily	n/a	555	38.74	28,726 USD	-12,206
Silver	4 hours	n/a	1,549	36.73	28,499 USD	-11,409

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal With Ergodic MDI
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

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

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

49 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

EMASMAStochastic

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 692 EUR is large next to the net profit of 1,359 EUR.

Questions

About this strategy

Can I run Reversal With Ergodic MDI 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 4 market and timeframe combinations. The best run by trade count was Gold, 4 hours, with 1,568 trades.

How large was the drawdown?

The best run had a maximum drawdown of 692 EUR at the tested position size, against a net result of 1,359 EUR.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

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CCI Breakout

Best run on the same market, Gold.

1.08 PF · 6,065 trades

ATR Momentum

Also a momentum strategy.

n/a PF · 15,021 trades

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.com Stats Docs