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Strategies / Momentum / WaveTrend Divergence Crossover

WaveTrend Divergence Crossover

The system tracks a WaveTrend oscillator built from the typical price, and holds a long while its fast line is above the slow line, and a short while below. It exits on opposite crosses in extreme zones or on regular divergence in the oscillator.

MomentumLong & shortSwingUSD/JPY4 hours
n/aProfit factor
1,170,630Net profit USD
37.01%Win rate
6,849Trades
-333,500Max drawdown
171Avg trade

Best run of 6. USD/JPY, 4 hours, spread 1, from run sweeps:2026-10-11-USDJPY-4h-opt.tsv:26.

Entry rules, long

  2. If the long was closed by an exit, it is re-entered on the next bar while the fast line remains above the signal line.

Entry rules, short

  2. If the short was closed by an exit, it is re-entered on the next bar while the fast line remains below the signal line.

Exit rules

  2. A long also closes on a bearish signal line divergence at a top fractal of 45 or 15 or higher, with a higher price high.
  3. A short closes when the fast line rises above the signal line, or on a bullish cross with the signal line at -53 or lower.
  4. A short also closes on a bullish divergence at a bottom fractal of -65 or -40 or lower, with a lower price low.

Test conditions

PeriodUp to 2026-10-11
InstrumentUSD/JPY, 4 hours
Spread1 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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run4 hoursn/a 6,84937.011,170,630 USD-333,500
USD/JPYDailyn/a 2,72536.701,095,220 USD-719,700
DAX 404 hoursn/a 5,86336.3817,060 EUR-11,468
GBP/USDDailyn/a 2,77537.6914,781 USD-6,828
Brent Crude4 hoursn/a 3,36836.2511,214 EUR-6,428
Gold4 hoursn/a 6,13834.473,183 EUR-1,513

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// WaveTrend Divergence Crossover
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE ci = 0
ONCE topaset = 0
ONCE topaval = 0
ONCE topapr = 0
ONCE topbset = 0
ONCE topbval = 0
ONCE topbpr = 0
ONCE botaset = 0
ONCE botaval = 0
ONCE botapr = 0
ONCE botbset = 0
ONCE botbval = 0
ONCE botbpr = 0

src = TypicalPrice
esa = ExponentialAverage[9](src)
de = ExponentialAverage[9](ABS(src - esa))

73 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

EMASMA
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run WaveTrend Divergence Crossover 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 6 market and timeframe combinations. The best run by trade count was USD/JPY, 4 hours, with 6,849 trades.

How large was the drawdown?

The best run had a maximum drawdown of 333,500 USD at the tested position size, against a net result of 1,170,630 USD.

Does it trade long, short or both?

It trades both long and short.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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