Strategies / Trend / SMA 50/200 Trend Reversal

SMA 50/200 Trend Reversal

The system holds a long position while the 50-period SMA is above the 200-period SMA, and a short position while it is below. It reverses when the averages cross, with the new trade opened one bar after the exit.

TrendLong & shortIntradayEUR/USD2 min

n/aProfit factor

142,133Net profit USD

30.43%Win rate

1,308Trades

-51,117Max drawdown

109Avg trade

Best run of 26. EUR/USD, 2 min, spread 1, from run sweeps:2026-10-04-EURUSD-2m-opt.tsv:15.

Entry rules, long

When flat, buy 1 contract at market if the 50-period SMA is above the 200-period SMA.

Entry rules, short

When flat, sell short 1 contract at market if the 50-period SMA is below the 200-period SMA.

Exit rules

An open short is bought back at market when the 50-period SMA rises above the 200-period SMA.
An opposite signal closes the trade and reverses it on the following bar.

Test conditions

Period	Up to 2026-10-04
Instrument	EUR/USD, 2 minutes
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	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
EUR/USDBest run	2 min	n/a	1,308	30.43	142,133 USD	-51,117
USD/JPY	Daily	n/a	73	32.88	1,245,290 USD	-1,024,400
USD/JPY	10 min	n/a	1,179	36.47	562,980 USD	-254,900
USD/JPY	30 min	n/a	1,209	34.00	412,720 USD	-286,300
USD/JPY	5 min	n/a	1,244	35.21	349,230 USD	-182,580
USD/JPY	3 min	n/a	1,242	33.74	181,050 USD	-123,440
EUR/USD	Daily	n/a	74	45.95	174,563 USD	-31,840
Nikkei 225	Daily	n/a	62	35.48	58,877 USD	-22,118
EUR/USD	4 hours	n/a	280	35.71	47,257 USD	-46,970
Silver	2 min	n/a	1,239	34.38	20,916 USD	-19,504
Silver	10 min	n/a	1,251	31.18	20,864 USD	-18,027
US Crude Oil	4 hours	n/a	131	40.46	13,551 EUR	-7,984
GBP/USD	Daily	n/a	73	42.47	11,834 USD	-11,012
Brent Crude	4 hours	n/a	96	42.71	11,793 EUR	-6,091
Nasdaq 100	4 hours	n/a	180	32.78	5,773 EUR	-5,464
Gold	Daily	n/a	59	45.76	4,277 EUR	-1,631
S&P 500	Daily	n/a	62	51.61	3,514 EUR	-2,003
Brent Crude	2 min	n/a	1,190	33.70	2,852 EUR	-2,472
Gold	5 min	n/a	1,215	32.35	2,506 EUR	-638
Gold	10 min	n/a	1,241	33.76	2,296 EUR	-1,466
Gold	3 min	n/a	1,209	34.49	2,228 EUR	-662
Gold	1 hour	n/a	711	36.85	1,728 EUR	-1,416
Gold	4 hours	n/a	208	34.13	1,636 EUR	-1,209
Gold	15 min	n/a	1,225	33.14	1,583 EUR	-996
Gold	2 min	n/a	1,274	33.59	1,450 EUR	-921
Gold	1 min	n/a	1,270	32.76	834 EUR	-750

Charts

Results by run

Top 10 of 26 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// SMA 50/200 Trend Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: 2 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

fast = Average[50](close)
slow = Average[200](close)

15 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

SMA

Read this firstKnown weaknesses2 points

No profit factor is available, because only sweep results exist for this strategy.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run SMA 50/200 Trend 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 26 market and timeframe combinations. The best run by trade count was EUR/USD, 2 minutes, with 1,308 trades.

How large was the drawdown?

The best run had a maximum drawdown of 51,117 USD at the tested position size, against a net result of 142,133 USD.

Does it trade long, short or both?

It trades both long and short.

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

ADX Filtered EMA Cross

Also a trend strategy.

1.15 PF · 607 trades

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

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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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