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Strategies / Mean reversion / Short Term RSI Pullback Short

Short Term RSI Pullback Short

It sells short when the 2 period RSI is above 90 with the close below its 200 period average. Shorts close when the close falls below its 5 period average.

Mean reversionShort onlySwingGBP/USDDaily
1.33Profit factor
3,410Net profit USD
66.00%Win rate
300Trades
-1,518Max drawdown
11.37Avg trade

Best run of 1. GBP/USD, Daily, spread 1.8, from run pf:2026-10-10-GBPUSD-D.tsv:12.

Entry rules, short

Exit rules

  1. The close is below its 5 period simple moving average, closing the short.

Test conditions

PeriodUp to 2026-10-10
InstrumentGBP/USD, Daily
Spread1.8 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 tested2026-10-10

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
GBP/USDBest runDaily1.33 30066.003,410 USD-1,518

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Short Term RSI Pullback Short
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Short only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false
ONCE capital = 10000

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

RSISMA
Read this firstKnown weaknesses2 points
  • It was only tested on GBP/USD, so there is no evidence from other markets.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Short Term RSI Pullback Short 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, GBP/USD, Daily, with a profit factor of 1.33 over 300 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,518 USD at the tested position size, against a net result of 3,410 USD.

Does it trade long, short or both?

It only takes short trades.

Related

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Color Code Candle Flip

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1.56 PF · 3,285 trades

Winning Market Declines

Also a mean reversion strategy.

1.33 PF · 1,130 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