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Strategies / Mean reversion / Wave Oscillator Dip Long

Wave Oscillator Dip Long

Buys when the close is below 0.978 times its 16-period EMA and the wave oscillator reads above 5.638 with RSI below 61, or below -19.993. Exits when the close is above 1.006 times its 49-period EMA, or at a 1% target or 50% stop.

Mean reversionLong onlySwingUS Crude OilDaily
n/aProfit factor
3,180Net profit EUR
91.84%Win rate
98Trades
-1,655Max drawdown
32.45Avg trade

Best run of 13. US Crude Oil, Daily, spread 3, from run sweeps:2026-10-04-CRUDE-D-opt.tsv:37.

Entry rules, long

  1. The close is below 0.978 times the 16-period exponential average
  2. Volume is greater than 0
  4. Wave oscillator is (50-period EMA minus 200-period EMA) divided by close, times 100

Exit rules

  2. A profit target sits 1% above the entry price
  3. A stop loss sits 50% below the entry price

Test conditions

PeriodUp to 2026-10-04
InstrumentUS Crude Oil, Daily
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
US Crude OilBest runDailyn/a 9891.843,180 EUR-1,655
Nikkei 225Dailyn/a 3393.9413,932 USD-4,065
Nasdaq 100Dailyn/a 4797.875,948 EUR-2,437
Brent CrudeDailyn/a 8293.904,402 EUR-2,615
Silver30 minn/a 10100.003,510 USD-474
Silver15 minn/a 5100.002,210 USD-1,063
Brent Crude4 hoursn/a 5490.741,755 EUR-1,497
Dow Jones4 hoursn/a 5100.00962 EUR-792
Brent Crude10 minn/a 7100.00634 EUR-88.60
Dow JonesDailyn/a 2100.00631 EUR-169
S&P 500Dailyn/a 887.50268 EUR-150
Gold1 hourn/a 2100.00105 EUR-0.00
FTSE 100Dailyn/a 1100.00103 EUR-62.50

Charts

Results by run

Top 10 of 13 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Wave Oscillator Dip Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

mabuy = ExponentialAverage[16](close)
masell = ExponentialAverage[49](close)
ewo = (ExponentialAverage[50](close) - ExponentialAverage[200](close)) / close * 100
myRsi = RSI[14](close)

13 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

EMARSIVolume
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The best run has only 98 trades, which is a small sample to judge it on.
  • The maximum drawdown of 1,655 EUR is large next to the net profit of 3,180 EUR.

Questions

About this strategy

Can I run Wave Oscillator Dip 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 13 market and timeframe combinations. The best run by trade count was US Crude Oil, Daily, with 98 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,655 EUR at the tested position size, against a net result of 3,180 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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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