Strategies / Mean reversion / Three Bar RSI Extremes

Three Bar RSI Extremes

Buys when the 14-period RSI has been at or below 25 for three consecutive bars, and sells when it has been at or above 75 for three consecutive bars. Holds one contract, long only.

Mean reversionLong onlyIntradayDAX 4030 min

n/aProfit factor

13,358Net profit EUR

67.33%Win rate

251Trades

-7,358Max drawdown

53.22Avg trade

Best run of 50. DAX 40, 30 min, spread 3, from run sweeps:2026-10-04-DAX40-30m-opt.tsv:26.

Entry rules, long

Exit rules

RSI(14) is at or above 75 on the current bar and on each of the two previous bars, closing the long position

Test conditions

Period	Up to 2026-10-04
Instrument	DAX 40, 30 minutes
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	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	30 min	n/a	251	67.33	13,358 EUR	-7,358
USD/JPY	1 hour	n/a	152	61.84	251,270 USD	-226,800
Nikkei 225	Daily	n/a	10	90.00	35,073 USD	-12,971
Nikkei 225	1 hour	n/a	114	71.05	27,876 USD	-11,290
Nikkei 225	30 min	n/a	214	64.49	24,816 USD	-9,419
Dow Jones	4 hours	n/a	16	68.75	23,442 EUR	-10,157
Nikkei 225	2 min	n/a	184	66.85	19,448 USD	-7,717
Nikkei 225	15 min	n/a	195	60.51	19,133 USD	-11,505
Nikkei 225	5 min	n/a	180	61.67	18,050 USD	-10,175
Dow Jones	15 min	n/a	168	67.26	18,046 EUR	-10,456
Nikkei 225	3 min	n/a	176	64.77	15,392 USD	-8,124
Nasdaq 100	1 hour	n/a	185	72.97	14,581 EUR	-5,566
Dow Jones	30 min	n/a	96	65.62	14,172 EUR	-10,463
Dow Jones	1 hour	n/a	52	69.23	14,096 EUR	-10,431
Nasdaq 100	4 hours	n/a	37	81.08	13,832 EUR	-4,478
Dow Jones	Daily	n/a	10	100.00	11,673 EUR	-8,615
Dow Jones	5 min	n/a	183	67.76	10,926 EUR	-6,768
Nasdaq 100	30 min	n/a	236	69.07	10,048 EUR	-7,548
DAX 40	Daily	n/a	13	84.62	9,556 EUR	-3,924
Dow Jones	3 min	n/a	168	61.31	9,300 EUR	-6,026
DAX 40	4 hours	n/a	39	74.36	9,124 EUR	-5,124
FTSE 100	Daily	n/a	10	90.00	8,830 EUR	-2,864
Dow Jones	2 min	n/a	158	64.56	7,311 EUR	-3,104
DAX 40	1 hour	n/a	150	65.33	6,901 EUR	-5,461
DAX 40	10 min	n/a	176	64.77	5,889 EUR	-3,655
FTSE 100	30 min	n/a	212	69.81	5,723 EUR	-2,660
FTSE 100	4 hours	n/a	27	77.78	5,577 EUR	-2,818
Dow Jones	1 min	n/a	129	63.57	5,304 EUR	-2,105
Nasdaq 100	2 min	n/a	167	58.68	4,825 EUR	-2,731
Brent Crude	2 min	n/a	173	69.36	4,812 EUR	-1,836
DAX 40	3 min	n/a	163	67.48	4,752 EUR	-4,382
FTSE 100	1 hour	n/a	122	72.13	4,553 EUR	-2,815
S&P 500	4 hours	n/a	30	83.33	4,254 EUR	-1,298
S&P 500	Daily	n/a	17	88.24	4,182 EUR	-907
Brent Crude	10 min	n/a	170	63.53	4,075 EUR	-3,292
Brent Crude	3 min	n/a	184	66.85	3,824 EUR	-2,565
S&P 500	1 hour	n/a	171	75.44	3,760 EUR	-1,314
FTSE 100	10 min	n/a	171	63.74	2,918 EUR	-1,509
DAX 40	1 min	n/a	134	65.67	2,764 EUR	-1,105
Nasdaq 100	Daily	n/a	7	100.00	2,657 EUR	-916
S&P 500	30 min	n/a	213	69.48	2,464 EUR	-1,314
FTSE 100	5 min	n/a	185	65.95	1,817 EUR	-1,038
FTSE 100	3 min	n/a	174	65.52	1,743 EUR	-1,039
S&P 500	3 min	n/a	154	64.94	1,642 EUR	-1,001
S&P 500	5 min	n/a	166	63.86	1,579 EUR	-1,316
S&P 500	2 min	n/a	128	66.41	1,168 EUR	-389
Gold	Daily	n/a	15	80.00	1,168 EUR	-335
FTSE 100	2 min	n/a	174	67.24	1,136 EUR	-903
Gold	1 hour	n/a	142	61.97	847 EUR	-767
S&P 500	1 min	n/a	103	58.25	468 EUR	-380

Charts

Results by run

Top 10 of 50 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Three Bar RSI Extremes
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

myRsi = RSI[14](close)

13 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

RSI

Read this firstKnown weaknesses3 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 7,358 EUR is large next to the net profit of 13,358 EUR.
The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Three Bar RSI Extremes 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 50 market and timeframe combinations. The best run by trade count was DAX 40, 30 minutes, with 251 trades.

How large was the drawdown?

The best run had a maximum drawdown of 7,358 EUR at the tested position size, against a net result of 13,358 EUR.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

Uses the same indicator.

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Heikin Ashi Color Flip

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ATR Band

Also a mean reversion strategy.

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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