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Strategies / Momentum / KDJ J Line Momentum Long

KDJ J Line Momentum Long

The system buys 1 contract when the J line of a KDJ stochastic rises above the D line. It exits when J turns down while in profit, or when J falls below D, and places a stop 2 times the 14-period ATR below entry.

MomentumLong onlySwingUSD/JPYDaily
4.17Profit factor
4,005,500Net profit USD
5.49%Win rate
6,135Trades
-334,460Max drawdown
653Avg trade

Best run of 3. USD/JPY, Daily, spread 1, from run pf:2026-10-05-USDJPY-D.tsv:3.

Entry rules, long

  2. K is a 3-period average of the 9-period raw stochastic, D is a 3-period average of K, and J equals 3K minus 2D.

Exit rules

  1. The trade closes at market when the close is above the entry price and J has fallen from the prior bar.
  3. A stop loss sits 2 times the 14-period ATR below the entry price.

Test conditions

PeriodUp to 2026-10-05
InstrumentUSD/JPY, Daily
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 tested2026-10-05

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily4.17 6,1355.494,005,500 USD-334,460
DAX 404 hoursn/a 4,86050.1012,048 EUR-4,596
Dow JonesDailyn/a 2,37549.7311,447 EUR-8,377

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// KDJ J Line Momentum Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE raw = 50

hh = highest[9](high)
ll = lowest[9](low)

21 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

StochasticATR
Longer historyRe-run on up to 1,000,000 barsUSD/JPY · Daily · older data -220.00 USD

USD/JPY had no history beyond the standard run, so both runs used 12,000 bars.

USD/JPY · Daily

Bars available12,000
Net, standard 200,000-bar run4,005,500.00 USD
Net, long run4,005,280.00 USD
Net on the older data alone-220.00 USD
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 KDJ J Line Momentum 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 3 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 4.17 over 6,135 trades.

How large was the drawdown?

The best run had a maximum drawdown of 334,460 USD at the tested position size, against a net result of 4,005,500 USD.

Does it trade long, short or both?

It only takes long 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.comStatsDocs