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Strategies / Volatility / Reversal Pattern With Chaikin Volatility

Reversal Pattern With Chaikin Volatility

The system buys when a stochastic-based close reversal agrees with a falling 12-period rate of change of the 10-period EMA of the bar range, and sells short on the mirror condition. Positions close when the states no longer agree.

VolatilityLong & shortSwingSilver1 hour
2.26Profit factor
510,090Net profit USD
42.68%Win rate
6,872Trades
-62,147Max drawdown
74.23Avg trade

Best run of 2. Silver, 1 hour, spread 2, from run pf:2026-10-13-SILVER-1h.tsv:8.

Entry rules, long

  1. The close is above the prior close, and the prior close was below the close 2 bars earlier.
  2. The Stochastic %K (14 periods) is below its 3-period SMA and above 50 on the same bar.
  4. When both states are bullish and no long is open, the system buys 1 contract at market.

Entry rules, short

  1. The close is below the prior close, and the prior close was above the close 2 bars earlier.
  2. The Stochastic %K (14 periods) is above its 3-period SMA and below 50 on the same bar.
  4. When both states are bearish and no short is open, the system sells 1 contract short at market.

Exit rules

  2. When they no longer agree, an open short is bought back at market.

Test conditions

PeriodUp to 2026-10-13
InstrumentSilver, 1 hour
Spread2 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 tested2026-10-13

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run1 hour2.26 6,87242.68510,090 USD-62,147
Brent CrudeDailyn/a 43347.818,558 EUR-6,485

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal Pattern With Chaikin Volatility
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Volatility
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE stoch = 50
ONCE posrev = 0
ONCE postwo = 0

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

43 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

EMAStochastic
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Reversal Pattern With Chaikin Volatility 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 2 market and timeframe combinations. The best run was Silver, 1 hour, with a profit factor of 2.26 over 6,872 trades.

How large was the drawdown?

The best run had a maximum drawdown of 62,147 USD at the tested position size, against a net result of 510,090 USD.

Does it trade long, short or both?

It trades both long and short.

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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