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Strategies / Pattern / Key Reversal Up With Stochastic

Key Reversal Up With Stochastic

The strategy buys at market after the close has risen for two bars, the 14-period stochastic %K is above 50 and below its 3-period average, and a key reversal up bar forms. It closes the long when either condition no longer holds.

PatternLong onlySwingBrent CrudeDaily
n/aProfit factor
3,408Net profit EUR
51.66%Win rate
422Trades
-1,966Max drawdown
8.08Avg trade

Best run of 1. Brent Crude, Daily, spread 3, from run sweeps:2026-10-11-BRENT-D-opt.tsv:53.

Entry rules, long

  1. The stochastic reversal state turns bullish when the close rises for two consecutive bars, %K(14) is above 50, and %K is below its 3-period average.
  3. A long opens at market when both states are true on the same bar and no long position is open.

Exit rules

  1. The long closes at market when the stochastic state or the key reversal up condition is no longer true.

Test conditions

PeriodUp to 2026-10-11
InstrumentBrent Crude, 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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Brent CrudeBest runDailyn/a 42251.663,408 EUR-1,966

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Key Reversal Up With Stochastic
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long only
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000

ll = lowest[14](low)
hh = highest[14](high)

38 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

StochasticSMA
Read this firstKnown weaknesses4 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 1,966 EUR is large next to the net profit of 3,408 EUR.
  • It was only tested on Brent Crude, so there is no evidence from other markets.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Key Reversal Up With Stochastic 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 one combination, Brent Crude, Daily, with 422 trades.

How large was the drawdown?

The best run had a maximum drawdown of 1,966 EUR at the tested position size, against a net result of 3,408 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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Trend Surfer

Uses the same indicator.

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Hull Trend With ADX Filter

Best run on the same market, Brent Crude.

1.27 PF · 1,400 trades

Breakout Reversal

Also a pattern strategy.

n/a PF · 459 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