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Strategies / Pattern / Three Bar Low Reversal Time Exit

Three Bar Low Reversal Time Exit

The strategy buys when the last bars form a specific pattern of lower lows and a lower high. It sells after 7 bars or when the close reaches the 200-period SMA.

PatternLong onlySwingNasdaq 1004 hours
1.32Profit factor
13,907Net profit EUR
51.62%Win rate
1,819Trades
-3,426Max drawdown
7.65Avg trade

Best run of 8. Nasdaq 100, 4 hours, spread 3, from run pf:2026-10-13-NAS100-4h.tsv:11.

Entry rules, long

  2. The low two bars back is below the low four bars back, and the high two bars back is below the high three bars back.

Exit rules

  2. The close is at or above the 200-period SMA.

Test conditions

PeriodUp to 2026-10-13
InstrumentNasdaq 100, 4 hours
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 tested2026-10-13

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nasdaq 100Best run4 hours1.32 1,81951.6213,907 EUR-3,426
Dow Jones4 hoursn/a 65555.4218,575 EUR-7,822
Dow JonesDailyn/a 1,00353.5413,649 EUR-9,484
Dow Jones1 hourn/a 2,49554.038,935 EUR-5,189
Nasdaq 100Dailyn/a 67647.195,763 EUR-3,962
FTSE 100Dailyn/a 71555.943,624 EUR-2,455
S&P 500Dailyn/a 96045.621,885 EUR-1,003
S&P 5004 hoursn/a 1,81851.051,689 EUR-1,590

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Three Bar Low Reversal Time Exit
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE bars = -1

ma = Average[200](close)

18 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

SMA
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 Three Bar Low Reversal Time Exit 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 was Nasdaq 100, 4 hours, with a profit factor of 1.32 over 1,819 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,426 EUR at the tested position size, against a net result of 13,907 EUR.

Does it trade long, short or both?

It only takes long 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.comStatsDocs