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Strategies / Mean reversion / Six Check Confluence Reversal

Six Check Confluence Reversal

The system buys when at least 3 of 6 reversal checks agree, such as a close back above the lower Bollinger band. It sells short on the mirror score, with a stop at 1.5 times ATR(14) and a target at 3 times ATR(14).

Mean reversionLong & shortSwingDow Jones1 hour
n/aProfit factor
9,774Net profit EUR
34.05%Win rate
2,176Trades
-7,943Max drawdown
4.49Avg trade

Best run of 8. Dow Jones, 1 hour, spread 3, from run sweeps:2026-10-07-DOW30-1h-opt.tsv:7.

Entry rules, long

  2. RSI(14) is between 20 and 55 and rising.
  3. The close is above EMA(9).
  4. The close is above the Bollinger middle band, or between the lower band and the middle with RSI(14) below 40.
  5. A hammer, or a bullish doji with close above open, forms.
  6. The low is below the prior low while RSI(14) rises from below 35.

Entry rules, short

  2. RSI(14) is above 65 and falling.
  3. The close is below EMA(9).
  4. A gravestone, or a bearish doji with close below open, forms.
  5. The high is above the prior high while RSI(14) falls from above 65.
  6. RSI(14) drops from above 70 to below 70.

Exit rules

  2. A target sits 3 times ATR(14) from the fill price.

Test conditions

PeriodUp to 2026-10-07
InstrumentDow Jones, 1 hour
Spread3 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 tested2026-10-07

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest run1 hourn/a 2,17634.059,774 EUR-7,943
USD/JPYDailyn/a 2,09437.6883,410 USD-24,430
SilverDailyn/a 62432.3736,133 USD-14,717
Nikkei 2254 hoursn/a 1,29635.0326,197 USD-8,906
Dow JonesDailyn/a 73935.3218,332 EUR-11,809
DAX 40Dailyn/a 78735.0711,240 EUR-5,854
Nasdaq 1004 hoursn/a 1,86031.678,179 EUR-6,559
DAX 404 hoursn/a 1,63134.035,965 EUR-5,828

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Six Check Confluence Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[14](close)
rsiprev = myRsi[1]
bbmid = Average[20](close)
sd = STD[20](close)
bbup = bbmid + 2.0 * sd
bblo = bbmid - 2.0 * sd
ema = ExponentialAverage[9](close)
myAtr = AverageTrueRange[14](close)

42 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

RSIBollinger BandsEMAATRSMA
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 7,943 EUR is large next to the net profit of 9,774 EUR.

Questions

About this strategy

Can I run Six Check Confluence 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 8 market and timeframe combinations. The best run by trade count was Dow Jones, 1 hour, with 2,176 trades.

How large was the drawdown?

The best run had a maximum drawdown of 7,943 EUR at the tested position size, against a net result of 9,774 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

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Turtle Trade

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ATR Band

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See how ProRealAlgos combines strategies like this into one automated portfolio.

Copy trading on US indices is available to ProRealAlgos members as spots open.

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