Strategies / Mean reversion / WaveTrend Crossover Long Only

WaveTrend Crossover Long Only

A long-only WaveTrend oscillator system that buys when its fast line crosses above its signal line while the signal sits at or below -40. It sells when the lines cross down with the signal at or above 60, and uses no stops.

Mean reversionLong onlySwingDow JonesDaily

2.98Profit factor

35,973Net profit EUR

77.39%Win rate

115Trades

-8,615Max drawdown

313Avg trade

Best run of 34. Dow Jones, Daily, spread 3, from run pf:2026-10-04-DOW30-D.tsv:1.

Entry rules, long

The signal line is at or below -40.

Exit rules

There is no stop-loss or profit target.

Test conditions

Period	Up to 2026-10-04
Instrument	Dow Jones, 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	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Dow JonesBest run	Daily	2.98	115	77.39	35,973 EUR	-8,615
Nasdaq 100	4 hours	2.47	286	76.22	23,616 EUR	-4,807
S&P 500	4 hours	1.93	270	72.59	4,747 EUR	-1,083
Nasdaq 100	1 hour	1.46	1,008	70.34	21,749 EUR	-5,046
S&P 500	1 hour	1.37	1,031	68.38	4,909 EUR	-1,185
USD/JPY	4 hours	n/a	317	64.67	381,970 USD	-332,100
Nikkei 225	4 hours	n/a	220	70.45	39,267 USD	-10,155
Nikkei 225	1 hour	n/a	811	65.84	31,021 USD	-10,069
Nikkei 225	30 min	n/a	1,546	63.52	26,169 USD	-10,386
Dow Jones	1 hour	n/a	335	69.85	24,157 EUR	-9,180
DAX 40	Daily	n/a	136	76.47	21,524 EUR	-6,212
Silver	Daily	n/a	110	70.00	20,467 USD	-9,053
Nikkei 225	10 min	n/a	1,603	63.38	19,687 USD	-10,527
Nikkei 225	15 min	n/a	1,591	64.30	18,903 USD	-10,819
DAX 40	4 hours	n/a	262	70.23	17,514 EUR	-5,124
Dow Jones	4 hours	n/a	86	73.26	17,192 EUR	-11,189
Nasdaq 100	15 min	n/a	1,635	68.50	15,164 EUR	-6,085
Nasdaq 100	30 min	n/a	1,598	68.02	15,026 EUR	-5,157
Dow Jones	15 min	n/a	1,302	66.36	14,376 EUR	-8,222
Nasdaq 100	Daily	n/a	91	78.02	13,997 EUR	-5,626
FTSE 100	Daily	n/a	101	83.17	10,829 EUR	-3,190
DAX 40	1 hour	n/a	949	67.23	10,133 EUR	-5,818
Dow Jones	10 min	n/a	1,568	64.80	9,158 EUR	-8,241
Nasdaq 100	10 min	n/a	1,573	66.37	7,272 EUR	-4,716
FTSE 100	1 hour	n/a	949	67.97	6,485 EUR	-3,291
Brent Crude	1 hour	n/a	511	64.19	5,917 EUR	-4,750
Brent Crude	4 hours	n/a	154	68.18	4,921 EUR	-4,279
S&P 500	Daily	n/a	124	81.45	3,987 EUR	-1,238
FTSE 100	4 hours	n/a	241	64.32	3,628 EUR	-3,495
S&P 500	15 min	n/a	1,634	67.93	2,642 EUR	-1,614
S&P 500	30 min	n/a	1,609	66.63	2,581 EUR	-1,260
FTSE 100	10 min	n/a	1,600	65.00	2,459 EUR	-1,737
Gold	4 hours	n/a	267	64.42	2,119 EUR	-1,124
Gold	Daily	n/a	112	63.39	1,193 EUR	-856

Charts

Results by run

Top 10 of 34 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// WaveTrend Crossover Long Only
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE ci = 0

ap = TypicalPrice
esa = ExponentialAverage[9](ap)
de = ExponentialAverage[9](abs(ap - esa))

17 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

EMASMA

Longer historyRe-run on up to 1,000,000 barsDow Jones · Daily · older data 81.20 EUR

Dow Jones had no history beyond the standard run, so both runs used 14,000 bars.

Dow Jones · Daily

Bars available	14,000
Net, standard 200,000-bar run	35,973.40 EUR
Net, long run	36,054.60 EUR
Net on the older data alone	81.20 EUR

Read this firstKnown weaknesses2 points

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run WaveTrend Crossover Long Only 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 34 market and timeframe combinations. The best run was Dow Jones, Daily, with a profit factor of 2.98 over 115 trades.

How large was the drawdown?

The best run had a maximum drawdown of 8,615 EUR at the tested position size, against a net result of 35,973 EUR.

Does it trade long, short or both?

It only takes long trades.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Turtle Trade

Best run on the same market, Dow Jones.

2.42 PF · 6,324 trades

RSI Zone Reversal

Also a mean reversion strategy.

3.00 PF · 120 trades

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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.com Stats Docs