Join waitlist
The books... not free though
10 Strategier Som Slår BörsenSvenska10 Strategier Som Slår Börsen10 Strategies That Beat the MarketEnglish10 Strategies That Beat the MarketProRealTime Coding Made SimpleEnglishProRealTime Coding Made Simple
600+StatisticsMarket statistics and edges1,327StrategiesBacktested strategy library18Research papersThe study behind the algos301DocsProBuilder coding reference27Algo development programCourses and lessons24Everything here feeds the 24 algosSee the algos
Strategies / Volatility / Volatility Fix Bottom Signal

Volatility Fix Bottom Signal

Buys when a bottom signal, measuring how far the low sits below the 22 bar highest close, turns on while the top signal is off. Closes the long when the top signal turns on and the bottom signal is off.

VolatilityLong onlySwingNasdaq 1004 hours
1.69Profit factor
15,068Net profit EUR
64.33%Win rate
314Trades
-3,405Max drawdown
47.99Avg trade

Best run of 18. Nasdaq 100, 4 hours, spread 3, from run pf:2026-10-04-NAS100-4h.tsv:7.

Entry rules, long

  1. The bottom reading is (22 bar highest close minus the low) divided by that highest close, times 100.
  3. A long opens when the bottom signal is true and the top signal is not.

Exit rules

  1. The top reading is (high minus the 22 bar lowest close) divided by that lowest close, times 100.
  2. The top signal is true when the top reading exceeds 0.85 times its 50 bar maximum and its 20 bar average plus 2 standard deviations.

Test conditions

PeriodUp to 2026-10-04
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 tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nasdaq 100Best run4 hours1.69 31464.3315,068 EUR-3,405
EUR/USD15 minn/a 2,20154.0232,538 USD-27,439
Dow JonesDailyn/a 13266.6728,829 EUR-7,354
SilverDailyn/a 12353.6621,701 USD-15,042
Nikkei 225Dailyn/a 10862.0421,492 USD-16,983
Nikkei 2251 hourn/a 98558.0716,972 USD-9,433
Nikkei 2254 hoursn/a 26556.2313,344 USD-12,125
Dow Jones30 minn/a 82359.7813,159 EUR-6,295
Nasdaq 100Dailyn/a 9767.0112,466 EUR-4,535
DAX 40Dailyn/a 14865.5410,224 EUR-4,803
DAX 404 hoursn/a 30060.337,654 EUR-6,209
Brent Crude4 hoursn/a 18258.245,475 EUR-4,847
FTSE 100Dailyn/a 11364.604,162 EUR-2,898
FTSE 1001 hourn/a 1,20060.753,850 EUR-2,160
S&P 500Dailyn/a 13166.413,455 EUR-1,162
S&P 5004 hoursn/a 30960.842,557 EUR-1,612
Gold4 hoursn/a 32457.412,160 EUR-1,277
GoldDailyn/a 12856.251,469 EUR-1,408

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

// ==============================================================
// Volatility Fix Bottom Signal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Volatility
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

hic = Highest[22](close)
loc = Lowest[22](close)
wvfb = (hic - low) / hic * 100
wvft = (high - loc) / loc * 100

bandb = Average[20](wvfb) + 2 * STD[20](wvfb)
rangeb = Highest[50](wvfb) * 0.85
bandt = Average[20](wvft) + 2 * STD[20](wvft)
rangetop = Highest[50](wvft) * 0.85

16 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

SMAStandard Deviation
Longer historyRe-run on up to 1,000,000 barsNasdaq 100 · 4 hours · older data 286.50 EUR

Nasdaq 100 had no history beyond the standard run, so both runs used 28,000 bars.

Nasdaq 100 · 4 hours

Bars available28,000
Net, standard 200,000-bar run15,068.00 EUR
Net, long run15,354.50 EUR
Net on the older data alone286.50 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 Volatility Fix Bottom Signal 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, 4 hours, with a profit factor of 1.69 over 314 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,404 EUR at the tested position size, against a net result of 15,068 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

Strategies like this one

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

Nested Bollinger Band Trend Entry

Also a volatility strategy.

1.47 PF · 531 trades

Get the full rules, the complete code and the ProRealAlgos portfolio as a member.

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