Strategies / Mean reversion / RSI Stochastic Mean Reversion

RSI Stochastic Mean Reversion

Buys when RSI(14) is below 20, stochastic %K(14) is below 25 and price is above 90% of the 200 EMA. Sells short when RSI(14) is above 65, %K(14) is above 75 and price is below the 200 EMA.

Mean reversionLong & shortSwingNasdaq 1001 hour

1.56Profit factor

18,582Net profit EUR

49.54%Win rate

216Trades

-4,383Max drawdown

86.03Avg trade

Best run of 46. Nasdaq 100, 1 hour, spread 3, from run pf:2026-10-05-NAS100-1h.tsv:12.

Entry rules, long

Raw stochastic %K(14) is below 25.
The close is above 90% of the 200 EMA.

Entry rules, short

Raw stochastic %K(14) is above 75.
The close is below the 200 EMA.

Exit rules

A 6% profit target from the fill price closes the trade.

Test conditions

Period	Up to 2026-10-05
Instrument	Nasdaq 100, 1 hour
Spread	3 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	2026-10-07

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
Nasdaq 100Best run	1 hour	1.56	216	49.54	18,582 EUR	-4,383
Nasdaq 100	30 min	1.54	212	47.64	23,934 EUR	-4,942
USD/JPY	2 min	n/a	4	75.00	169,470 USD	-116,370
EUR/USD	1 hour	n/a	89	46.07	58,058 USD	-32,869
Silver	2 min	n/a	120	51.67	48,250 USD	-16,707
Silver	3 min	n/a	126	51.59	47,928 USD	-14,942
Dow Jones	1 hour	n/a	53	60.38	38,762 EUR	-6,442
EUR/USD	10 min	n/a	11	72.73	37,717 USD	-8,851
EUR/USD	15 min	n/a	20	55.00	34,394 USD	-19,282
Nikkei 225	10 min	n/a	93	48.39	31,452 USD	-14,742
Silver	1 min	n/a	52	55.77	29,918 USD	-6,636
Nikkei 225	3 min	n/a	51	52.94	26,991 USD	-20,500
Silver	5 min	n/a	126	47.62	25,326 USD	-9,379
Nikkei 225	5 min	n/a	63	49.21	23,722 USD	-17,395
EUR/USD	3 min	n/a	3	100.00	18,525 USD	-5,938
Silver	10 min	n/a	173	46.82	17,614 USD	-7,619
Nasdaq 100	15 min	n/a	146	47.95	16,132 EUR	-5,171
Dow Jones	10 min	n/a	44	47.73	13,890 EUR	-11,599
Silver	15 min	n/a	208	42.79	13,645 USD	-11,371
DAX 40	1 hour	n/a	179	45.25	11,878 EUR	-4,804
Dow Jones	4 hours	n/a	27	51.85	10,594 EUR	-8,906
Nasdaq 100	3 min	n/a	29	55.17	10,511 EUR	-4,524
GBP/USD	30 min	n/a	47	57.45	9,864 USD	-3,373
GBP/USD	4 hours	n/a	63	49.21	9,610 USD	-3,242
DAX 40	15 min	n/a	90	47.78	8,609 EUR	-7,907
GBP/USD	1 hour	n/a	85	48.24	8,471 USD	-5,282
Brent Crude	10 min	n/a	199	45.73	8,228 EUR	-4,304
Brent Crude	5 min	n/a	119	47.90	8,144 EUR	-4,644
US Crude Oil	15 min	n/a	300	41.67	6,392 EUR	-5,597
US Crude Oil	30 min	n/a	361	42.38	6,137 EUR	-3,724
US Crude Oil	10 min	n/a	237	43.04	5,859 EUR	-4,815
S&P 500	15 min	n/a	94	53.19	5,093 EUR	-1,504
GBP/USD	10 min	n/a	17	64.71	4,942 USD	-2,129
Nasdaq 100	1 min	n/a	9	55.56	4,368 EUR	-3,698
US Crude Oil	1 hour	n/a	261	42.53	3,998 EUR	-3,603
S&P 500	30 min	n/a	149	42.95	2,969 EUR	-2,258
FTSE 100	3 min	n/a	14	57.14	2,263 EUR	-1,178
FTSE 100	5 min	n/a	18	55.56	2,077 EUR	-1,719
S&P 500	1 hour	n/a	161	42.24	2,068 EUR	-1,406
Gold	3 min	n/a	43	51.16	1,709 EUR	-881
Gold	2 min	n/a	41	51.22	1,577 EUR	-1,199
DAX 40	Daily	n/a	40	40.00	1,379 EUR	-1,333
S&P 500	5 min	n/a	30	50.00	1,301 EUR	-975
S&P 500	3 min	n/a	20	50.00	1,236 EUR	-769
S&P 500	2 min	n/a	6	66.67	937 EUR	-740
Gold	Daily	n/a	46	45.65	385 EUR	-163

Charts

Results by run

Top 10 of 46 runs. The full list is in the table above.

Above 1.0 made money, below 1.0 lost money.

The code

ProBuilder code, as tested

// ==============================================================
// RSI Stochastic Mean Reversion
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE stochk = 50

ema = ExponentialAverage[200](close)
myRsi = RSI[14](close)
hh = highest[14](high)
ll = lowest[14](low)

21 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

RSIStochasticEMA

Longer historyRe-run on up to 1,000,000 barsNasdaq 100 · 1 hour · older data 419.20 EUR

Nasdaq 100 had no history beyond the standard run, so both runs used 114,000 bars.

Nasdaq 100 · 1 hour

Bars available	114,000
Net, standard 200,000-bar run	18,581.80 EUR
Net, long run	19,001.00 EUR
Net on the older data alone	419.20 EUR

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 RSI Stochastic Mean Reversion 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 46 market and timeframe combinations. The best run was Nasdaq 100, 1 hour, with a profit factor of 1.56 over 216 trades.

How large was the drawdown?

The best run had a maximum drawdown of 4,383 EUR at the tested position size, against a net result of 18,582 EUR.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Volatility Spike Regression Long

Best run on the same market, Nasdaq 100.

1.22 PF · 1,850 trades

Double Sevens

Also a mean reversion strategy.

1.58 PF · 743 trades

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

Copy trading on US indices is available to ProRealAlgos members as spots open.

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