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Strategies / Pattern / Reversal With Fractal Chaos Oscillator

Reversal With Fractal Chaos Oscillator

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

PatternLong & shortSwingUS Crude OilDaily
n/aProfit factor
6,776Net profit EUR
50.65%Win rate
2,063Trades
-6,474Max drawdown
3.28Avg trade

Best run of 1. US Crude Oil, Daily, spread 3, from run sweeps:2026-10-11-CRUDE-D-opt.tsv:69.

Entry rules, long

  2. Fractal state is +1 when the latest up fractal value changes, and -1 when the latest down fractal value changes, otherwise unchanged.
  3. A fractal is a high above both neighboring highs, or a low below both neighboring lows.
  4. The system buys one contract at market when both states are +1.

Entry rules, short

  2. Fractal state is -1 when the latest down fractal value changes, and +1 when the latest up fractal value changes.
  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 2026-10-11
InstrumentUS Crude Oil, Daily
Spread3 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
US Crude OilBest runDailyn/a 2,06350.656,776 EUR-6,474

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal With Fractal Chaos Oscillator
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0
ONCE upres = 0
ONCE upok = 0
ONCE dnres = 0
ONCE dnok = 0

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

67 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

SMAStochastic
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 6,474 EUR is large next to the net profit of 6,776 EUR.
  • It was only tested on US Crude Oil, so there is no evidence from other markets.

Questions

About this strategy

Can I run Reversal With Fractal Chaos Oscillator 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 one combination, US Crude Oil, Daily, with 2,063 trades.

How large was the drawdown?

The best run had a maximum drawdown of 6,474 EUR at the tested position size, against a net result of 6,776 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