Strategies / Momentum / Reversal With Finite Volume Elements

Reversal With Finite Volume Elements

Buys when a reversal pattern on closing prices and the Finite Volume Elements measure both point up, and sells short when both point down. Any open position is closed when the two signals disagree.

MomentumLong & shortSwingGBP/USD1 hour

1.21Profit factor

12,919Net profit USD

43.65%Win rate

1,267Trades

-2,312Max drawdown

10.20Avg trade

Best run of 9. GBP/USD, 1 hour, spread 1.5, from run pf:2026-10-12-GBPUSD-1h.tsv:1.

Entry rules, long

FVE state is +1 when the FVE value is above both of its last two values, and -1 when it is below both.
The system buys one contract at market when both states are +1.

Entry rules, short

FVE state is -1 when the FVE value is below both of its last two values.
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 2026-10-12
Instrument	GBP/USD, 1 hour
Spread	1.5 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	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
GBP/USDBest run	1 hour	1.21	1,267	43.65	12,919 USD	-2,312
USD/JPY	30 min	n/a	1,213	39.16	404,940 USD	-239,750
USD/JPY	10 min	n/a	981	37.00	279,950 USD	-138,010
Silver	4 hours	n/a	2,146	35.04	25,825 USD	-17,214
DAX 40	30 min	n/a	1,201	38.38	7,846 EUR	-5,480
DAX 40	Daily	n/a	268	41.04	7,281 EUR	-3,889
S&P 500	Daily	n/a	246	40.24	1,769 EUR	-1,583
Gold	5 min	n/a	1,232	36.93	1,377 EUR	-813
Gold	30 min	n/a	1,705	39.41	1,133 EUR	-860

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal With Finite Volume Elements
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE nres = 0
ONCE posfve = 0

ll = lowest[15](low)
hh = highest[15](high)

61 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

SMAStochasticVolume

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 With Finite Volume Elements 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 9 market and timeframe combinations. The best run was GBP/USD, 1 hour, with a profit factor of 1.21 over 1,267 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,312 USD at the tested position size, against a net result of 12,918 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

Color Code Candle Flip

Best run on the same market, GBP/USD.

1.56 PF · 3,285 trades

Displacement Candle Continuation

Also a momentum strategy.

1.21 PF · 1,905 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