Join waitlist
The books... not free though
10 Strategier Som Slår BörsenSvenska10 Strategier Som Slår Börsen10 Strategies That Beat the MarketEnglish10 Strategies That Beat the MarketProRealTime Coding Made SimpleEnglishProRealTime Coding Made Simple
600+StatisticsMarket statistics and edges1,327StrategiesBacktested strategy library18Research papersThe study behind the algos301DocsProBuilder coding reference27Algo development programCourses and lessons24Everything here feeds the 24 algosSee the algos
Strategies / Mean reversion / Stochastic Crossover With Stop and Target

Stochastic Crossover With Stop and Target

Buys when the smoothed %K crosses above %D while %K is below 20, and sells when %K crosses below %D with %K above 60. Each long also has a 2.5% stop loss and a 6% profit target from the entry price.

Mean reversionLong onlySwingNasdaq 1001 hour
n/aProfit factor
3,952Net profit EUR
59.65%Win rate
1,700Trades
-3,628Max drawdown
2.32Avg trade

Best run of 8. Nasdaq 100, 1 hour, spread 3, from run sweeps:2026-10-03-NAS100-1h-opt.tsv:26.

Entry rules, long

  2. %K is below 20.

Exit rules

  2. A 2.5% stop loss from the entry price.
  3. A 6% profit target from the entry price.

Test conditions

PeriodUp to 2026-10-03
InstrumentNasdaq 100, 1 hour
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 tested2026-10-03

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nasdaq 100Best run1 hourn/a 1,70059.653,952 EUR-3,628
Dow Jones4 hoursn/a 19064.7413,021 EUR-5,249
Dow Jones1 hourn/a 56561.9511,420 EUR-5,488
DAX 40Dailyn/a 40744.478,108 EUR-2,285
Nasdaq 1004 hoursn/a 57358.816,164 EUR-4,343
FTSE 100Dailyn/a 24953.015,303 EUR-2,957
Nasdaq 100Dailyn/a 25034.802,614 EUR-2,170
S&P 5004 hoursn/a 53059.811,464 EUR-1,231

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Crossover With Stop and Target
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE raw = 50

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

20 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

StochasticSMA
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 3,628 EUR is large next to the net profit of 3,952 EUR.

Questions

About this strategy

Can I run Stochastic Crossover With Stop and Target 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 8 market and timeframe combinations. The best run by trade count was Nasdaq 100, 1 hour, with 1,700 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,628 EUR at the tested position size, against a net result of 3,952 EUR.

Does it trade long, short or both?

It only takes long trades.

Related

Strategies like this one

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

ATR Band

Also a mean reversion strategy.

10.31 PF · 53 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.comStatsDocs