Strategies / Breakout / Reversal Pattern With Daily Pivot Levels

Reversal Pattern With Daily Pivot Levels

The system buys when a stochastic-based close reversal agrees with the close trading above the first resistance level from the prior daily bar, and sells short when the close is below the first support level. Positions close when the states disagree.

BreakoutLong & shortSwingUSD/JPYDaily

1.21Profit factor

1,874,810Net profit USD

37.98%Win rate

1,506Trades

-414,150Max drawdown

1,245Avg trade

Best run of 13. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:61.

Entry rules, long

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

Entry rules, short

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

Exit rules

When they no longer agree, an open short is bought back at market.
No stop or profit target is set.

Test conditions

Period	Up to 2026-10-13
Instrument	USD/JPY, Daily
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-13

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	1.21	1,506	37.98	1,874,810 USD	-414,150
USD/JPY	30 min	n/a	2,242	36.44	631,390 USD	-218,920
USD/JPY	1 hour	n/a	2,173	37.05	609,260 USD	-234,240
USD/JPY	10 min	n/a	1,583	38.66	542,550 USD	-144,380
USD/JPY	15 min	n/a	1,766	35.84	357,430 USD	-175,590
Silver	4 hours	n/a	1,201	34.05	35,598 USD	-12,399
US Crude Oil	1 hour	n/a	1,491	38.63	11,306 EUR	-3,757
US Crude Oil	30 min	n/a	2,156	37.29	10,127 EUR	-4,823
DAX 40	30 min	n/a	2,626	35.26	8,672 EUR	-6,016
US Crude Oil	15 min	n/a	1,942	37.33	5,944 EUR	-4,737
Gold	4 hours	n/a	1,174	37.90	2,062 EUR	-658
Gold	1 hour	n/a	2,060	36.89	1,379 EUR	-1,303
Gold	30 min	n/a	2,419	35.97	1,260 EUR	-757

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

// ==============================================================
// Reversal Pattern With Daily Pivot Levels
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Breakout
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0

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

54 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
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".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Stochastic

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 Reversal Pattern With Daily Pivot Levels 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 USD/JPY, Daily, with a profit factor of 1.21 over 1,506 trades.

How large was the drawdown?

The best run had a maximum drawdown of 414,150 USD at the tested position size, against a net result of 1,874,810 USD.

Does it trade long, short or both?

It trades both long and short.

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Uses the same indicator.

2.26 PF · 6,872 trades

Trend Surfer

Best run on the same market, USD/JPY.

1.04 PF · 10,813 trades

Bollinger Band Trend Breakout

Also a breakout strategy.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

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.com Stats Docs