Strategies / Mean reversion / Scored Oversold Reversal Long

Scored Oversold Reversal Long

The strategy scores oversold RSI, MACD turns, candle shape and a bullish reversal pattern, then buys 1 contract when the score reaches 13 or more. It sets a stop below the recent 11 bar low and a target 5 times that risk.

Mean reversionLong onlySwingUSD/JPYDaily

3.05Profit factor

47,870Net profit USD

42.57%Win rate

148Trades

-4,000Max drawdown

323Avg trade

Best run of 29. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:28.

Entry rules, long

The score adds 2 when RSI(21) is below 30, 2 more below 25, and 1 when RSI is rising.
It adds 1 when the MACD line (3 and 10 periods) is below 0, 2 when it is rising, and 2 when the histogram is rising.
It adds 2 when the lower wick exceeds 50% of the range, 1 when the body is under 30%, and 1 for a green bar.
It adds 2 when any of the last 3 highs exceeds 1.003 times the close, and 4 for a confirmed bullish reversal.
A candidate bar's close is below at least 11 of the latest 12 lows, and a close above its high within 4 bars confirms it.

Exit rules

The target is 5 times the stop distance above the entry price.
No signal-based exit is used.

Test conditions

Period	Up to 2026-10-12
Instrument	USD/JPY, Daily
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	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	3.05	148	42.57	47,870 USD	-4,000
Nikkei 225	15 min	n/a	483	20.08	30,074 USD	-8,504
Nikkei 225	30 min	n/a	597	16.92	17,720 USD	-7,453
Nikkei 225	2 min	n/a	303	19.80	12,741 USD	-4,252
Dow Jones	1 hour	n/a	166	19.88	12,690 EUR	-5,723
Nikkei 225	10 min	n/a	448	18.08	12,484 USD	-6,234
Nikkei 225	1 hour	n/a	413	15.50	11,321 USD	-8,423
Dow Jones	Daily	n/a	116	23.28	9,831 EUR	-8,027
Dow Jones	15 min	n/a	371	17.79	9,765 EUR	-5,823
Dow Jones	10 min	n/a	322	20.50	8,937 EUR	-3,587
Dow Jones	30 min	n/a	244	20.90	8,910 EUR	-5,589
DAX 40	30 min	n/a	691	19.39	8,598 EUR	-5,140
Nikkei 225	5 min	n/a	374	17.91	8,510 USD	-8,051
Nikkei 225	1 min	n/a	227	18.94	7,500 USD	-5,436
US Crude Oil	Daily	n/a	133	26.32	7,481 EUR	-3,646
DAX 40	1 hour	n/a	476	17.65	6,150 EUR	-2,990
Dow Jones	4 hours	n/a	61	24.59	5,856 EUR	-5,100
Nasdaq 100	1 hour	n/a	510	14.51	5,595 EUR	-5,148
Dow Jones	2 min	n/a	158	19.62	4,751 EUR	-3,865
DAX 40	15 min	n/a	496	17.94	4,705 EUR	-2,721
Dow Jones	1 min	n/a	121	20.66	4,131 EUR	-2,064
US Crude Oil	30 min	n/a	848	16.98	3,591 EUR	-2,598
S&P 500	1 hour	n/a	430	18.14	2,861 EUR	-819
FTSE 100	1 hour	n/a	463	18.79	2,439 EUR	-2,236
FTSE 100	10 min	n/a	292	19.52	1,896 EUR	-1,045
Gold	15 min	n/a	317	19.56	1,256 EUR	-429
S&P 500	5 min	n/a	213	20.19	1,204 EUR	-401
Gold	10 min	n/a	295	17.97	1,077 EUR	-590
S&P 500	2 min	n/a	149	19.46	379 EUR	-367

Charts

Results by run

Top 10 of 29 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE cand = 0
ONCE rlow = 0
ONCE rhigh = 0
ONCE conf = 0
ONCE ccnt = 0
ONCE tpslset = 0

myMacd = ExponentialAverage[3](close) - ExponentialAverage[10](close)
signal = ExponentialAverage[3](myMacd)
hist = myMacd - signal
myRsi = RSI[21](close)

body = ABS(close - open)
lwick = MIN(open, close) - low
tot = high - low

97 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

RSIMACD

Read this firstKnown weaknesses2 points

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Scored Oversold Reversal Long 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 29 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 3.05 over 148 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,000 USD at the tested position size, against a net result of 47,870 USD.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

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EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

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Buying Pressure Oscillator Long

Also a mean reversion strategy.

3.03 PF · 127 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

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