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Strategies / Momentum / Smoothed RSI Overbought Long

Smoothed RSI Overbought Long

The strategy buys when a 14-period EMA of a 14-period RSI rises above 80, which reads as strong upward momentum. It closes the long when that smoothed RSI falls below 40.

MomentumLong onlyIntradayNasdaq 10010 min
1.91Profit factor
6,191Net profit EUR
52.87%Win rate
174Trades
-920Max drawdown
35.58Avg trade

Best run of 32. Nasdaq 100, 10 min, spread 3, from run pf:2026-10-12-NAS100-10m.tsv:1.

Entry rules, long

Exit rules

  1. The smoothed RSI falls below 40 and the long position is closed at market.

Test conditions

PeriodUp to 2026-10-12
InstrumentNasdaq 100, 10 minutes
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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nasdaq 100Best run10 min1.91 17452.876,191 EUR-920
USD/JPY4 hoursn/a 3345.45304,470 USD-108,810
USD/JPY30 minn/a 19741.12163,250 USD-91,800
USD/JPY1 hourn/a 12642.06124,070 USD-111,330
USD/JPY3 minn/a 11951.2671,600 USD-36,640
USD/JPY1 minn/a 8739.0818,440 USD-15,820
Silver30 minn/a 16942.6015,131 USD-6,626
Nikkei 225Dailyn/a 1070.0012,415 USD-6,277
Nikkei 22510 minn/a 18645.166,935 USD-3,705
Nikkei 2253 minn/a 14643.156,479 USD-4,316
Dow JonesDailyn/a 1163.646,060 EUR-3,084
Nasdaq 10030 minn/a 23042.614,041 EUR-2,868
Silver1 minn/a 8949.443,775 USD-2,009
Dow Jones5 minn/a 14641.103,457 EUR-2,093
Nikkei 2251 minn/a 14238.033,317 USD-2,762
Dow Jones10 minn/a 16544.242,989 EUR-2,525
Nasdaq 10015 minn/a 22446.882,963 EUR-1,573
DAX 4030 minn/a 20841.832,796 EUR-2,240
Nasdaq 1005 minn/a 15547.742,449 EUR-1,311
DAX 401 hourn/a 13240.912,318 EUR-2,132
US Crude Oil3 minn/a 11533.042,076 EUR-1,450
GoldDailyn/a 1330.771,677 EUR-1,072
DAX 405 minn/a 11843.221,553 EUR-825
Gold1 hourn/a 11546.091,165 EUR-562
S&P 500Dailyn/a 1369.231,029 EUR-747
Gold30 minn/a 15742.041,002 EUR-593
Gold10 minn/a 17638.64642 EUR-301
DAX 401 minn/a 10140.59631 EUR-589
S&P 5004 hoursn/a 2650.00590 EUR-365
Gold2 minn/a 13740.15478 EUR-211
Gold3 minn/a 16239.51450 EUR-316
GBP/USD3 minn/a 9739.18224 USD-203

Charts

Results by run

Top 10 of 32 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Smoothed RSI Overbought Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

rs = RSI[14](TotalPrice)
ma = ExponentialAverage[14](rs)

10 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

RSIEMA
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 Smoothed RSI Overbought Long 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 32 market and timeframe combinations. The best run was Nasdaq 100, 10 minutes, with a profit factor of 1.91 over 174 trades.

How large was the drawdown?

The best run had a maximum drawdown of 920 EUR at the tested position size, against a net result of 6,190 EUR.

Does it trade long, short or both?

It only takes long 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