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Strategies / Mean reversion / Short Term RSI Pullback

Short Term RSI Pullback

The strategy trades short-term pullbacks in the direction of the 200-bar SMA. It buys when RSI(2) falls below 5 in an uptrend and sells short when RSI(2) rises above 90 in a downtrend, closing positions almost immediately.

Mean reversionLong & shortSwingEUR/USD4 hours
n/aProfit factor
14,145Net profit USD
51.08%Win rate
2,259Trades
-11,156Max drawdown
6.26Avg trade

Best run of 4. EUR/USD, 4 hours, spread 1, from run sweeps:2026-10-11-EURUSD-4h-opt.tsv:23.

Entry rules, long

Entry rules, short

Exit rules

  1. Any open position closes when the close is above or below the 5-bar SMA, which is nearly every bar.

Test conditions

PeriodUp to 2026-10-11
InstrumentEUR/USD, 4 hours
Spread1 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
EUR/USDBest run4 hoursn/a 2,25951.0814,145 USD-11,156
USD/JPYDailyn/a 68052.94385,370 USD-127,700
Nikkei 225Dailyn/a 47951.576,058 USD-3,350
Nasdaq 100Dailyn/a 43039.773,414 EUR-1,328

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Short Term RSI Pullback
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

rs = RSI[2](close)
mafast = Average[5](close)
maslow = Average[200](close)

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 weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 11,156 USD is large next to the net profit of 14,145 USD.
  • 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 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 4 market and timeframe combinations. The best run by trade count was EUR/USD, 4 hours, with 2,259 trades.

How large was the drawdown?

The best run had a maximum drawdown of 11,156 USD at the tested position size, against a net result of 14,145 USD.

Does it trade long, short or both?

It trades both long and short.

Related

Strategies like this one

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Slow MACD Slope

Best run on the same market, EUR/USD.

6.80 PF · 7,305 trades

ATR Band

Also a mean reversion strategy.

10.31 PF · 53 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