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Strategies / Mean reversion / RSI Zone Reversal

RSI Zone Reversal

Buys 1 contract when the 14 period RSI drops below 30 after its last extreme reading was above 70. Closes the long when the RSI rises above 70 after its last extreme reading was below 30.

Mean reversionLong onlySwingNikkei 2254 hours
3.00Profit factor
51,076Net profit USD
75.00%Win rate
120Trades
-9,360Max drawdown
426Avg trade

Best run of 38. Nikkei 225, 4 hours, spread 10, from run pf:2026-10-04-NIKKEI-4h.tsv:8.

Entry rules, long

Exit rules

  1. The 14 period RSI is above 70, and the previous extreme reading was below 30, closing the long.

Test conditions

PeriodUp to 2026-10-04
InstrumentNikkei 225, 4 hours
Spread10 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 tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nikkei 225Best run4 hours3.00 12075.0051,076 USD-9,360
FTSE 10010 min1.31 77068.184,314 EUR-1,049
USD/JPY1 hourn/a 58563.76306,740 USD-234,080
Dow JonesDailyn/a 5580.0048,165 EUR-9,003
EUR/USD10 minn/a 73662.5033,364 USD-10,456
Nikkei 2251 hourn/a 41966.3527,749 USD-9,373
Nikkei 22515 minn/a 81964.9627,446 USD-13,525
Nikkei 22530 minn/a 80665.8823,476 USD-9,815
DAX 40Dailyn/a 6073.3319,409 EUR-4,933
Nasdaq 1004 hoursn/a 16376.6917,963 EUR-4,546
Nikkei 22510 minn/a 81165.1015,504 USD-10,519
Dow Jones1 hourn/a 19571.7915,467 EUR-9,943
DAX 404 hoursn/a 14371.3315,417 EUR-5,393
Nasdaq 100Dailyn/a 4283.3312,501 EUR-4,231
SilverDailyn/a 5170.5911,968 USD-8,384
Dow Jones30 minn/a 35467.5111,822 EUR-8,593
Dow Jones15 minn/a 66466.579,910 EUR-8,514
DAX 401 hourn/a 50367.209,652 EUR-6,067
Dow Jones10 minn/a 79566.169,433 EUR-6,942
FTSE 100Dailyn/a 3984.628,607 EUR-3,190
Nasdaq 10015 minn/a 82864.497,783 EUR-5,841
Dow Jones1 minn/a 68866.576,892 EUR-3,234
FTSE 1001 hourn/a 47068.725,636 EUR-2,663
DAX 4030 minn/a 83365.195,316 EUR-4,716
FTSE 1004 hoursn/a 11969.755,064 EUR-2,806
DAX 4010 minn/a 78365.904,906 EUR-3,534
S&P 5004 hoursn/a 14173.763,509 EUR-1,298
FTSE 1005 minn/a 82367.683,506 EUR-922
S&P 500Dailyn/a 5280.773,333 EUR-955
S&P 50030 minn/a 79567.303,128 EUR-1,064
FTSE 10030 minn/a 78966.413,062 EUR-2,996
FTSE 10015 minn/a 77066.622,782 EUR-2,672
S&P 5001 hourn/a 55768.942,712 EUR-1,398
S&P 50010 minn/a 79165.991,811 EUR-1,123
Gold4 hoursn/a 14160.281,347 EUR-744
S&P 50015 minn/a 78566.371,233 EUR-1,198
GBP/USD5 minn/a 74464.521,165 USD-814
S&P 5001 minn/a 60866.28750 EUR-348

Charts

Results by run

Top 10 of 38 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// RSI Zone Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE zone = 0

myRsi = RSI[14](close)
longsig = 0
shortsig = 0

20 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

RSI
Longer historyRe-run on up to 1,000,000 barsNikkei 225 · 4 hours · older data 0.00 USD

Nikkei 225 had no history beyond the standard run, so both runs used 22,000 bars.

Nikkei 225 · 4 hours

Bars available22,000
Net, standard 200,000-bar run51,076.20 USD
Net, long run51,076.20 USD
Net on the older data alone0.00 USD
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run RSI Zone 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 38 market and timeframe combinations. The best run was Nikkei 225, 4 hours, with a profit factor of 3.00 over 120 trades.

How large was the drawdown?

The best run had a maximum drawdown of 9,360 USD at the tested position size, against a net result of 51,076 USD.

Does it trade long, short or both?

It only takes long trades.

Related

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Rock Climber

Best run on the same market, Nikkei 225.

1.44 PF · 1,644 trades

RSI Oversold Mean Reversion

Also a mean reversion strategy.

3.00 PF · 120 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.comStatsDocs