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Strategies / Momentum / Stochastic MACD RSI Sequence

Stochastic MACD RSI Sequence

Buys once stochastic %D has fallen below 20, then MACD crosses above its signal line and RSI(14) rises above 50, with no reading above 80 in between. The stop sits 0.25% below the 14-bar low, with a target 1.5 times the stop distance.

MomentumLong onlySwingDAX 404 hours
1.29Profit factor
13,217Net profit EUR
43.52%Win rate
301Trades
-3,309Max drawdown
43.91Avg trade

Best run of 36. DAX 40, 4 hours, spread 3, from run pf:2026-10-10-DAX40-4h.tsv:1.

Entry rules, long

  1. Stochastic %D (14, 3, 3) has dropped below 20 since the last reset.
  2. After that, the MACD line (12, 26, 9) crosses above its signal line.
  4. Both %K and %D are below 80 on this bar.
  5. Any %K or %D reading above 80 resets all three steps.

Exit rules

  2. The target is 1.5 times the stop distance above entry.
  3. No other exit is used.

Test conditions

PeriodUp to 2026-10-10
InstrumentDAX 40, 4 hours
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 tested2026-10-10

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
DAX 40Best run4 hours1.29 30143.5213,217 EUR-3,309
DAX 4030 min1.14 1,40242.0114,002 EUR-3,031
Nikkei 2254 hoursn/a 23446.1530,038 USD-10,387
Dow JonesDailyn/a 15446.1026,664 EUR-9,692
Nikkei 225Dailyn/a 9044.4424,981 USD-16,951
Nikkei 22510 minn/a 1,37640.2620,904 USD-7,809
Nikkei 22515 minn/a 1,40739.5918,190 USD-10,532
Nikkei 2253 minn/a 98141.1817,860 USD-9,477
Nikkei 2255 minn/a 1,17840.3216,010 USD-11,399
Dow Jones4 hoursn/a 9745.3613,864 EUR-6,204
Nikkei 2252 minn/a 90140.7312,456 USD-8,413
Nasdaq 1004 hoursn/a 31744.1611,206 EUR-6,590
Nasdaq 100Dailyn/a 10855.5610,511 EUR-5,524
Dow Jones1 hourn/a 32342.4110,456 EUR-7,814
DAX 4010 minn/a 1,17842.3610,123 EUR-3,057
DAX 4015 minn/a 1,33340.969,120 EUR-2,912
Dow Jones5 minn/a 70541.708,687 EUR-6,834
Nasdaq 1001 hourn/a 98041.737,461 EUR-3,742
Nasdaq 1005 minn/a 93541.186,912 EUR-3,788
Brent CrudeDailyn/a 5246.156,775 EUR-6,270
Dow Jones1 minn/a 32044.696,437 EUR-2,553
DAX 405 minn/a 89243.836,164 EUR-2,549
Nasdaq 10030 minn/a 1,38040.295,993 EUR-5,820
Nasdaq 10015 minn/a 1,39140.265,978 EUR-4,649
DAX 40Dailyn/a 16445.125,531 EUR-5,335
DAX 401 hourn/a 94241.404,714 EUR-4,089
FTSE 100Dailyn/a 10551.434,521 EUR-2,600
S&P 500Dailyn/a 15642.952,051 EUR-947
S&P 5004 hoursn/a 29344.031,910 EUR-1,367
S&P 5001 hourn/a 98541.521,793 EUR-1,088
S&P 50030 minn/a 1,27241.271,544 EUR-1,264
Gold4 hoursn/a 28645.801,409 EUR-1,228
Gold30 minn/a 1,41839.921,287 EUR-830
Gold15 minn/a 1,29340.291,231 EUR-736
S&P 50010 minn/a 1,07340.17930 EUR-915
GoldDailyn/a 15844.94912 EUR-850

Charts

Results by run

Top 10 of 36 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

// ==============================================================
// Stochastic MACD RSI Sequence
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long only
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE stepa = 0
ONCE stepb = 0
ONCE stepc = 0
ONCE resumed = 0

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

51 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

EMAMACDRSISMAStochastic
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 Stochastic MACD RSI Sequence 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 36 market and timeframe combinations. The best run was DAX 40, 4 hours, with a profit factor of 1.29 over 301 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,309 EUR at the tested position size, against a net result of 13,217 EUR.

Does it trade long, short or both?

It only takes long trades.

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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