Strategies / Pattern / RSI Divergence Reversal

RSI Divergence Reversal

Buys on a bullish RSI(8) divergence against a lower 5-bar low and sells short on the mirrored bearish divergence. Each trade has a 1% stop loss and a 2% profit target from the entry price.

PatternLong & shortSwingEUR/USD1 hour

n/aProfit factor

47,527Net profit USD

56.65%Win rate

4,023Trades

-41,026Max drawdown

11.81Avg trade

Best run of 4. EUR/USD, 1 hour, spread 1, from run sweeps:2026-10-10-EURUSD-1h-opt.tsv:4.

Entry rules, long

No bullish signal is taken on a bar that also shows a bearish divergence.

Entry rules, short

Exit rules

A stop loss is set 1% from the entry price.
A profit target is set 2% from the entry price.

Test conditions

Period	Up to 2026-10-10
Instrument	EUR/USD, 1 hour
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	2026-10-10

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
EUR/USDBest run	1 hour	n/a	4,023	56.65	47,527 USD	-41,026
Dow Jones	4 hours	n/a	382	44.50	12,953 EUR	-6,302
Dow Jones	1 min	n/a	3,449	58.54	8,372 EUR	-2,971
GBP/USD	4 hours	n/a	1,243	49.48	6,196 USD	-4,855

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// RSI Divergence Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[8](close)
ll = lowest[5](low)
hh = highest[5](high)
lr = lowest[5](myRsi)
hr = highest[5](myRsi)

15 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

RSI

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 41,026 USD is large next to the net profit of 47,527 USD.

Questions

About this strategy

Can I run RSI Divergence Reversal 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 EUR/USD, 1 hour, with 4,023 trades.

How large was the drawdown?

The best run had a maximum drawdown of 41,026 USD at the tested position size, against a net result of 47,527 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

Slow MACD Slope

Best run on the same market, EUR/USD.

6.80 PF · 7,305 trades

Breakout Reversal

Also a pattern strategy.

n/a PF · 459 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