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Strategies / Momentum / RSI Smoothed Signal Crossover

RSI Smoothed Signal Crossover

The strategy buys when a 5-period exponential average of RSI(20) crosses above 50 and sells short when it crosses below 50, reversing any open position. Each trade uses a stop and target of 0.435% from the entry price.

MomentumLong & shortSwingDow Jones4 hours
n/aProfit factor
3,891Net profit EUR
50.69%Win rate
434Trades
-3,645Max drawdown
8.97Avg trade

Best run of 1. Dow Jones, 4 hours, spread 3, from run sweeps:2026-10-11-DOW30-4h-opt.tsv:7.

Entry rules, long

  2. Entries are only taken after the first 40 bars.

Entry rules, short

  2. Entries are only taken after the first 40 bars.

Exit rules

  2. An opposite crossing closes the trade and reverses it.

Test conditions

PeriodUp to 2026-10-11
InstrumentDow Jones, 4 hours
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
Dow JonesBest run4 hoursn/a 43450.693,891 EUR-3,645

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// RSI Smoothed Signal Crossover
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[20](close)
rsiema = ExponentialAverage[5](myRsi)

13 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

RSIEMA
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 3,645 EUR is large next to the net profit of 3,891 EUR.
  • It was only tested on Dow Jones, so there is no evidence from other markets.

Questions

About this strategy

Can I run RSI Smoothed Signal Crossover 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, Dow Jones, 4 hours, with 434 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,645 EUR at the tested position size, against a net result of 3,891 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

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Trend Surfer

Uses the same indicator.

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Turtle Trade

Best run on the same market, Dow Jones.

2.42 PF · 6,324 trades

ATR Momentum

Also a momentum strategy.

n/a PF · 15,021 trades

See how ProRealAlgos combines strategies like this into one automated portfolio.

Copy trading on US indices is available to ProRealAlgos members as spots open.

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