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Strategies / Momentum / MACD Stochastic RSI Reversal

MACD Stochastic RSI Reversal

Goes long when MACD is above its signal line, smoothed stochastic %K is above 50 and RSI is above 50. Goes short on the mirror conditions, and an opposite signal reverses the position.

MomentumLong & shortSwingUSD/JPY1 hour
n/aProfit factor
595,630Net profit USD
36.23%Win rate
8,865Trades
-357,320Max drawdown
67.19Avg trade

Best run of 7. USD/JPY, 1 hour, spread 1, from run sweeps:2026-10-12-USDJPY-1h-opt.tsv:33.

Entry rules, long

  2. The 3 period SMA of 14 period stochastic %K is above 50.
  3. RSI(14) is above 50.

Entry rules, short

  2. The 3 period SMA of 14 period stochastic %K is below 50.
  3. RSI(14) is below 50.

Exit rules

  2. A short closes when the MACD line rises above its signal line.

Test conditions

PeriodUp to 2026-10-12
InstrumentUSD/JPY, 1 hour
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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run1 hourn/a 8,86536.23595,630 USD-357,320
USD/JPYDailyn/a 88936.332,165,810 USD-583,130
USD/JPY4 hoursn/a 2,26338.71593,690 USD-286,040
SilverDailyn/a 83435.7341,033 USD-23,715
GBP/USDDailyn/a 92739.7013,013 USD-7,072
DAX 401 hourn/a 7,06836.797,025 EUR-4,562
Gold4 hoursn/a 2,01938.042,128 EUR-867

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// MACD Stochastic RSI Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE raw = 50

myMacd = ExponentialAverage[12](close) - ExponentialAverage[26](close)
signal = ExponentialAverage[9](myMacd)
ll = lowest[14](low)
hh = highest[14](high)

24 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

MACDEMAStochasticSMARSI
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 357,320 USD is large next to the net profit of 595,630 USD.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run MACD Stochastic RSI Reversal 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 7 market and timeframe combinations. The best run by trade count was USD/JPY, 1 hour, with 8,865 trades.

How large was the drawdown?

The best run had a maximum drawdown of 357,320 USD at the tested position size, against a net result of 595,630 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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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