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Strategies / Mean reversion / RSI Stochastic Oversold Higher High

RSI Stochastic Oversold Higher High

Buys one contract after an oversold bar, where RSI(14) was at or below 30 and Stochastic %K at or below 20, when the current high exceeds the previous high. Exits when %K reaches 90 or the price falls 0.6% from entry.

Mean reversionLong onlyIntradayDow Jones2 min
n/aProfit factor
3,504Net profit EUR
63.13%Win rate
933Trades
-2,527Max drawdown
3.76Avg trade

Best run of 5. Dow Jones, 2 min, spread 3, from run sweeps:2026-10-04-DOW30-2m-opt.tsv:22.

Entry rules, long

  2. Stochastic %K (raw 14-period, smoothed by a 3-period SMA) on the previous bar was at or below 20.
  3. The current high is above the previous bar's high.
  4. A long is opened at market only when no position is open.

Exit rules

  2. A stop loss 0.6% below the entry price is set.

Test conditions

PeriodUp to 2026-10-04
InstrumentDow Jones, 2 minutes
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 tested2026-10-04

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest run2 minn/a 93363.133,504 EUR-2,527
USD/JPY4 hoursn/a 32336.53215,250 USD-90,790
Dow JonesDailyn/a 13210.616,395 EUR-2,556
Dow Jones1 minn/a 85462.653,550 EUR-2,360
FTSE 100Dailyn/a 9913.131,588 EUR-766

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// RSI Stochastic Oversold Higher High
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 2 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE rawk = 50

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

19 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

RSIStochasticSMA
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 2,527 EUR is large next to the net profit of 3,504 EUR.

Questions

About this strategy

Can I run RSI Stochastic Oversold Higher High 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 5 market and timeframe combinations. The best run by trade count was Dow Jones, 2 minutes, with 933 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,527 EUR at the tested position size, against a net result of 3,504 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

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ATR Band

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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.comStatsDocs