Strategies / Mean reversion / RSI 3 Oversold Long

RSI 3 Oversold Long

A very short RSI of 3 periods flags sharp dips. The system buys when it falls below 10 and sells when it climbs back above 50. It only trades long.

Mean reversionLong onlySwingNikkei 225Daily

2.12Profit factor

35,538Net profit USD

70.20%Win rate

255Trades

-5,992Max drawdown

139Avg trade

Best run of 8. Nikkei 225, Daily, spread 10, from run pf:2026-09-25-NIKKEI-D.tsv:2.

Entry rules, long

Members only

Exit rules

Members only
No stop loss or target

Test conditions

Period	Up to 2026-09-25
Instrument	Nikkei 225, Daily
Spread	10 points
Contracts	1
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	2026-09-25

Parameters

positionSize Contracts per trade	1
rsiPeriod RSI length	3
oversoldLevel Entry RSI level	10
rsiExitLevel Exit RSI level	50

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nikkei 225Best run	Daily	2.12	255	70.20	35,538 USD	-5,992
USD/JPY	30 min	n/a	4,248	65.40	160,020 JPY	-140,630
Dow Jones	Daily	n/a	305	67.54	14,222 EUR	-5,149
Nasdaq 100	Daily	n/a	207	64.25	7,409 EUR	-2,311
DAX 40	Daily	n/a	318	62.26	5,654 EUR	-3,563
FTSE 100	Daily	n/a	246	71.54	4,162 EUR	-1,489
Nasdaq 100	4 hours	n/a	733	65.89	3,752 EUR	-3,071
S&P 500	Daily	n/a	301	61.46	1,471 EUR	-611

Charts

Results by run

Net profit against max drawdown

Net profitMax drawdown

The code

ProBuilder, rewritten to house standard

Every file in the library uses the same header, the same section order and the same variable names. The numbers above were produced by the original version before the rewrite, and the rewrite has not yet been compiled in ProRealTime.

// ============================================================
// RSI 3 Oversold Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ============================================================

// --- Settings ---
DEFPARAM CumulateOrders = false

// --- Parameters ---
positionSize = 1          // contracts per trade
rsiPeriod = 3             // RSI length
oversoldLevel = 10        // buy below this RSI
rsiExitLevel = 50         // sell above this RSI

// --- Indicators ---
rsiValue = RSI[rsiPeriod](close)

13 more lines: the entry and exit rules.

Read this first

Known weaknesses

No stop loss or target. If the market keeps falling, RSI(3) may stay low and the position keeps losing.
The best run on Nikkei 225 Daily had 255 trades, a modest sample from one market and timeframe.
Only the Nikkei 225 Daily run has a recorded profit factor. The other rows are sweep data.
On USD/JPY 30 minutes the max drawdown (JPY 140,630) nearly matched the profit (JPY 160,020).

Indicators used

RSI

How to load it

Copy the code with the copy button above 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.

Questions

About this strategy

Can RSI 3 Oversold Long run in ProOrder?

Yes, it is a small ProOrder system. The code is a rewrite that has not been compile-checked, and the stats are from the version before.

How did it do on other markets?

All seven rows were profitable. Dow Jones Daily made EUR 14,221.90 and Nasdaq 100 Daily EUR 7,409.20.

What drawdown does 1 contract bring?

Nikkei 225 Daily had a max drawdown of USD 5,991.80. S&P 500 Daily was EUR 610.95.

Why Daily bars?

Five of the seven tested rows are Daily, and the only run with a recorded profit factor is Daily. Short dips on index charts tend to be clearer on that timeframe.

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