Strategies / Mean reversion / SMA Trend RSI Dip Buying

SMA Trend RSI Dip Buying

The strategy buys when price is above the 200-bar average and RSI(14) drops below 35, and sells when price is below that average and RSI(14) rises above 65. It uses no stop loss or profit target.

Mean reversionLong onlySwingNasdaq 1001 hour

1.94Profit factor

17,993Net profit EUR

43.09%Win rate

188Trades

-4,312Max drawdown

95.71Avg trade

Best run of 47. Nasdaq 100, 1 hour, spread 3, from run pf:2026-10-05-NAS100-1h.tsv:9.

Entry rules, long

The close is above the 200-bar simple moving average

Exit rules

The close is below the 200-bar simple moving average and RSI(14) is above 65

Test conditions

Period	Up to 2026-10-05
Instrument	Nasdaq 100, 1 hour
Spread	3 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	2026-10-10

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nasdaq 100Best run	1 hour	1.94	188	43.09	17,993 EUR	-4,312
S&P 500	1 hour	1.77	187	42.78	3,639 EUR	-895
Nikkei 225	30 min	1.57	289	40.83	35,236 USD	-8,436
USD/JPY	1 hour	n/a	194	43.81	794,370 USD	-288,250
USD/JPY	Daily	n/a	18	50.00	616,990 USD	-512,850
USD/JPY	30 min	n/a	289	40.14	490,190 USD	-223,180
USD/JPY	15 min	n/a	279	42.65	370,000 USD	-117,130
USD/JPY	10 min	n/a	266	44.36	358,180 USD	-177,500
USD/JPY	5 min	n/a	259	45.17	180,080 USD	-157,250
USD/JPY	2 min	n/a	241	44.81	153,310 USD	-53,550
USD/JPY	3 min	n/a	255	45.10	108,100 USD	-88,230
Nikkei 225	Daily	n/a	16	43.75	50,961 USD	-20,571
Dow Jones	Daily	n/a	15	66.67	43,522 EUR	-11,142
Nikkei 225	4 hours	n/a	38	39.47	42,599 USD	-11,963
Nikkei 225	1 hour	n/a	140	47.14	36,192 USD	-14,567
DAX 40	Daily	n/a	19	63.16	26,563 EUR	-5,511
Nasdaq 100	Daily	n/a	11	90.91	23,291 EUR	-5,520
Nikkei 225	15 min	n/a	292	41.10	21,528 USD	-14,327
Silver	5 min	n/a	260	40.00	21,197 USD	-15,188
Nasdaq 100	4 hours	n/a	47	63.83	15,679 EUR	-4,780
DAX 40	1 hour	n/a	155	45.16	14,800 EUR	-4,477
Dow Jones	30 min	n/a	120	48.33	14,303 EUR	-6,042
Dow Jones	4 hours	n/a	17	47.06	14,217 EUR	-5,533
Nasdaq 100	30 min	n/a	282	43.97	11,651 EUR	-5,980
Dow Jones	1 hour	n/a	64	50.00	10,880 EUR	-8,055
Brent Crude	30 min	n/a	188	39.36	8,292 EUR	-6,474
S&P 500	Daily	n/a	14	92.86	7,238 EUR	-1,238
FTSE 100	Daily	n/a	11	63.64	6,428 EUR	-3,643
US Crude Oil	2 min	n/a	262	40.08	5,280 EUR	-2,393
Brent Crude	2 min	n/a	246	41.46	4,640 EUR	-1,719
Brent Crude	3 min	n/a	283	37.10	4,351 EUR	-2,341
Gold	Daily	n/a	14	64.29	4,322 EUR	-1,534
S&P 500	4 hours	n/a	45	55.56	3,840 EUR	-1,205
FTSE 100	1 hour	n/a	164	39.02	3,162 EUR	-2,921
S&P 500	30 min	n/a	267	47.19	2,926 EUR	-1,040
US Crude Oil	1 min	n/a	245	37.14	2,601 EUR	-1,991
Gold	4 hours	n/a	51	45.10	2,328 EUR	-1,345
Gold	1 hour	n/a	179	37.43	2,110 EUR	-935
Gold	2 min	n/a	246	41.87	1,961 EUR	-670
Gold	10 min	n/a	276	39.86	1,894 EUR	-1,194
Gold	3 min	n/a	264	41.67	1,836 EUR	-661
Gold	5 min	n/a	262	43.13	1,771 EUR	-1,136
Gold	15 min	n/a	270	41.11	1,742 EUR	-1,237
Gold	30 min	n/a	270	38.89	1,718 EUR	-1,239
FTSE 100	5 min	n/a	265	44.15	1,011 EUR	-989
GBP/USD	5 min	n/a	260	41.15	887 USD	-722
S&P 500	1 min	n/a	221	37.10	431 EUR	-315

Charts

Results by run

Top 10 of 47 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// SMA Trend RSI Dip Buying
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

sma = Average[200](close)
myRsi = RSI[14](close)

12 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

SMARSI

Longer historyRe-run on up to 1,000,000 barsNasdaq 100 · 1 hour · older data 429.20 EUR

Nasdaq 100 had no history beyond the standard run, so both runs used 114,000 bars.

Nasdaq 100 · 1 hour

Bars available	114,000
Net, standard 200,000-bar run	17,993.40 EUR
Net, long run	18,422.60 EUR
Net on the older data alone	429.20 EUR

Read this firstKnown weaknesses2 points

The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run SMA Trend RSI Dip Buying 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 47 market and timeframe combinations. The best run was Nasdaq 100, 1 hour, with a profit factor of 1.94 over 188 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,312 EUR at the tested position size, against a net result of 17,993 EUR.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Volatility Spike Regression Long

Best run on the same market, Nasdaq 100.

1.22 PF · 1,850 trades

Three Bar Pullback Trend Buyer

Also a mean reversion strategy.

1.94 PF · 637 trades

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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.com Stats Docs