Strategies / Momentum / Three Tool Confirmation Long

Three Tool Confirmation Long

Buys one contract when one of three signals (MACD histogram, close versus 10-period SMA, slow stochastic) turns bullish and the other two confirm. Exits when one turns bearish while the other two are bearish.

MomentumLong onlySwingNasdaq 100Daily

2.11Profit factor

20,727Net profit EUR

45.37%Win rate

313Trades

-4,159Max drawdown

66.22Avg trade

Best run of 18. Nasdaq 100, Daily, spread 3, from run pf:2026-10-13-NAS100-D.tsv:10.

Entry rules, long

The MACD(8,17,9) histogram crosses above zero, or is at or above zero and its size is growing.
The close crosses above the 10-period SMA, or is at or above it with the absolute gap to the SMA larger than the prior bar's close minus prior SMA.
The slow stochastic %K (14-period raw, smoothed by 5-period SMA) crosses above %D, or is at or above %D with a wider gap than the prior bar.

Exit rules

MACD bearish means the histogram crosses below zero, or is at or above zero with its size growing.
SMA bearish means the close crosses below the 10-period SMA, or is at or below it with the absolute gap larger than the prior bar's close minus prior SMA.
Stochastic bearish means %K crosses below %D, or is at or below %D with a wider gap than the prior bar.

Test conditions

Period	Up to 2026-10-13
Instrument	Nasdaq 100, Daily
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	2026-10-13

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nasdaq 100Best run	Daily	2.11	313	45.37	20,727 EUR	-4,159
Nikkei 225	Daily	n/a	310	44.19	43,745 USD	-16,706
Silver	4 hours	n/a	826	43.34	34,482 USD	-18,070
Silver	Daily	n/a	354	40.96	27,288 USD	-22,131
Dow Jones	Daily	n/a	388	48.97	26,212 EUR	-11,292
Nikkei 225	4 hours	n/a	687	42.94	22,084 USD	-9,986
Dow Jones	4 hours	n/a	252	46.43	18,527 EUR	-6,893
Dow Jones	1 hour	n/a	974	42.09	15,526 EUR	-15,077
Nasdaq 100	4 hours	n/a	784	45.15	14,118 EUR	-6,410
Nasdaq 100	1 hour	n/a	2,912	40.11	13,770 EUR	-5,739
DAX 40	4 hours	n/a	799	44.06	10,154 EUR	-4,476
DAX 40	Daily	n/a	409	45.48	10,021 EUR	-5,141
Nasdaq 100	15 min	n/a	4,973	41.56	9,795 EUR	-6,323
FTSE 100	Daily	n/a	326	46.63	5,123 EUR	-3,184
S&P 500	Daily	n/a	403	45.66	3,355 EUR	-1,032
Gold	Daily	n/a	371	40.43	2,846 EUR	-1,606
S&P 500	4 hours	n/a	832	43.51	1,718 EUR	-1,372
Gold	4 hours	n/a	831	41.88	1,701 EUR	-1,456

Charts

Results by run

Top 10 of 18 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Three Tool Confirmation Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE raw = 50

myMacd = ExponentialAverage[8](close) - ExponentialAverage[17](close)
amacd = ExponentialAverage[9](myMacd)
delta = myMacd - amacd

sma = Average[10](close)

ll = lowest[14](low)
hh = highest[14](high)

33 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

EMAMACDSMAStochastic

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 Tool Confirmation 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 18 market and timeframe combinations. The best run was Nasdaq 100, Daily, with a profit factor of 2.11 over 313 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,159 EUR at the tested position size, against a net result of 20,727 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.com Stats Docs

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