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Strategies / Momentum / WaveTrend Signal Line Crossover

WaveTrend Signal Line Crossover

The strategy buys when the WaveTrend line crosses above its signal line and sells when it crosses below. A 25% stop loss is set on each entry and no profit target is used.

MomentumLong onlySwingGold4 hours
1.31Profit factor
3,994Net profit EUR
37.99%Win rate
2,311Trades
-777Max drawdown
1.73Avg trade

Best run of 13. Gold, 4 hours, spread 0.6, from run pf:2026-10-10-GOLD-4h.tsv:2.

Entry rules, long

  1. The WaveTrend line, a 21-period EMA of a channel index on the 10-period typical price, crosses above its 4-period SMA.

Exit rules

  2. A 25% stop loss applies to each trade.

Test conditions

PeriodUp to 2026-10-10
InstrumentGold, 4 hours
Spread0.6 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 tested2026-10-10

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
GoldBest run4 hours1.31 2,31137.993,994 EUR-777
USD/JPY4 hoursn/a 2,63837.30735,590 USD-232,240
USD/JPYDailyn/a 1,01436.59711,120 USD-599,500
Nikkei 2254 hoursn/a 1,88537.8825,835 USD-9,447
Dow JonesDailyn/a 1,10838.4520,148 EUR-7,920
DAX 404 hoursn/a 2,26439.6214,735 EUR-4,293
DAX 40Dailyn/a 1,17537.6213,053 EUR-4,630
Nasdaq 1004 hoursn/a 2,34136.1811,619 EUR-4,864
Nasdaq 100Dailyn/a 85437.476,651 EUR-4,614
Brent Crude4 hoursn/a 1,28137.245,082 EUR-3,103
US Crude Oil4 hoursn/a 1,70137.515,011 EUR-4,362
GoldDailyn/a 1,02637.622,671 EUR-1,083
S&P 500Dailyn/a 1,16736.591,684 EUR-1,455

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

// ==============================================================
// WaveTrend Signal Line Crossover
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ap = (high + low + close) / 3
esa = ExponentialAverage[10](ap)
absdiff = ABS(ap - esa)
myD = ExponentialAverage[10](absdiff)
ci = 0

15 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
Longer historyRe-run on up to 1,000,000 barsGold · 4 hours · older data 0.00 EUR

Gold had no history beyond the standard run, so both runs used 30,000 bars.

Gold · 4 hours

Bars available30,000
Net, standard 200,000-bar run3,994.30 EUR
Net, long run3,994.30 EUR
Net on the older data alone0.00 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 Signal Line 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 13 market and timeframe combinations. The best run was Gold, 4 hours, with a profit factor of 1.31 over 2,311 trades.

How large was the drawdown?

The best run had a maximum drawdown of 777 EUR at the tested position size, against a net result of 3,994 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Uses the same indicator.

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CCI Breakout

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1.08 PF · 6,065 trades

RSI Momentum Thrust

Also a momentum strategy.

1.33 PF · 273 trades

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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