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Strategies / Mean reversion / Wave Oscillator Dip With Trend Exit

Wave Oscillator Dip With Trend Exit

Buys dips when the close is below 0.978 times its 16-period EMA and the wave oscillator confirms. Exits when the close is above 1.006 times its 49-period EMA or the trend trigger factor crosses above 100, with a 50% stop.

Mean reversionLong onlySwingUS Crude OilDaily
n/aProfit factor
3,228Net profit EUR
77.27%Win rate
44Trades
-2,648Max drawdown
73.37Avg trade

Best run of 9. US Crude Oil, Daily, spread 3, from run sweeps:2026-10-04-CRUDE-D-opt.tsv:38.

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. Or the trend trigger factor (15 periods) crosses above 100
  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 4477.273,228 EUR-2,648
Nikkei 225Dailyn/a 1883.3316,424 USD-5,644
Nasdaq 100Dailyn/a 2892.867,421 EUR-2,751
Silver30 minn/a 785.714,520 USD-2,557
Silver15 minn/a 2100.004,032 USD-2,922
Dow JonesDailyn/a 2100.001,965 EUR-171
Nikkei 2254 hoursn/a 2100.001,686 USD-937
S&P 500Dailyn/a 887.50687 EUR-150
Gold1 hourn/a 1100.00212 EUR-33.50

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

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

hh = Highest[15](high)
ll = Lowest[15](low)
buypower = hh - ll[15]
sellpower = hh[15] - ll
den = buypower + sellpower
ttf = 0

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 44 trades, which is a small sample to judge it on.
  • The maximum drawdown of 2,648 EUR is large next to the net profit of 3,228 EUR.

Questions

About this strategy

Can I run Wave Oscillator Dip With Trend 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 9 market and timeframe combinations. The best run by trade count was US Crude Oil, Daily, with 44 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,648 EUR at the tested position size, against a net result of 3,228 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