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Strategies / Mean reversion / Stochastic Oversold ADX Filter

Stochastic Oversold ADX Filter

Buys when ADX is below 20, %K or %D is below 10, and the close rose 2 bars in a row. Sells the long when ADX is above 50, %K or %D is above 90, and the close fell 2 bars in a row.

Mean reversionLong onlyIntradayNasdaq 10030 min
n/aProfit factor
13,410Net profit EUR
80.36%Win rate
56Trades
-3,112Max drawdown
239Avg trade

Best run of 67. Nasdaq 100, 30 min, spread 3, from run sweeps:2026-10-03-NAS100-30m-opt.tsv:66.

Entry rules, long

  1. ADX(14) is below 20.
  3. The close rose 2 bars in a row.
  4. Enter long at market when flat and all conditions above are met.

Exit rules

  2. The sell signal closes the long at market.

Test conditions

PeriodUp to 2026-10-03
InstrumentNasdaq 100, 30 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
Nasdaq 100Best run30 minn/a 5680.3613,410 EUR-3,112
USD/JPY30 minn/a 3971.79485,550 USD-251,090
USD/JPY15 minn/a 4372.09416,170 USD-314,480
USD/JPY2 minn/a 2975.86120,560 USD-96,180
Nikkei 2254 hoursn/a 6100.0039,866 USD-11,811
Nikkei 2251 hourn/a 2085.0039,736 USD-8,402
Nasdaq 100Dailyn/a 3100.0030,375 EUR-5,914
EUR/USD5 minn/a 3958.9729,839 USD-25,516
Nikkei 2253 minn/a 4470.4529,155 USD-9,927
Nikkei 22530 minn/a 4077.5028,227 USD-11,535
Nikkei 22515 minn/a 5273.0827,763 USD-11,652
DAX 40Dailyn/a 1100.0024,485 EUR-5,862
Nikkei 2252 minn/a 5074.0024,418 USD-10,558
Nikkei 22510 minn/a 4459.0921,329 USD-10,782
Silver30 minn/a 3770.2720,798 USD-6,975
Nikkei 225Dailyn/a 450.0019,561 USD-18,975
Silver5 minn/a 4067.5017,117 USD-12,883
Dow Jones30 minn/a 2060.0016,315 EUR-9,271
Dow Jones1 hourn/a 977.7816,309 EUR-4,749
Silver15 minn/a 3158.0615,196 USD-6,349
Dow Jones15 minn/a 4669.5714,831 EUR-9,943
Nikkei 2255 minn/a 3971.7914,237 USD-13,467
DAX 401 hourn/a 3174.1914,215 EUR-4,550
Dow Jones10 minn/a 4365.1213,756 EUR-8,192
Nasdaq 10015 minn/a 4772.3413,689 EUR-3,734
DAX 4030 minn/a 4057.5012,491 EUR-4,973
DAX 4010 minn/a 4479.5512,031 EUR-4,167
Nasdaq 1004 hoursn/a 6100.0011,825 EUR-4,569
Dow JonesDailyn/a 3100.0011,765 EUR-7,617
DAX 4015 minn/a 4369.7711,252 EUR-5,814
Dow Jones5 minn/a 4566.6711,088 EUR-7,823
Dow Jones2 minn/a 4269.059,613 EUR-3,492
US Crude Oil10 minn/a 3464.718,745 EUR-6,817
DAX 405 minn/a 4465.918,700 EUR-4,463
Nasdaq 1001 hourn/a 2993.108,642 EUR-6,156
Dow Jones4 hoursn/a 3100.008,414 EUR-6,737
FTSE 100Dailyn/a 1100.007,873 EUR-3,643
Brent Crude3 minn/a 3865.797,328 EUR-2,442
Brent Crude30 minn/a 3467.657,068 EUR-6,149
S&P 500Dailyn/a 3100.006,626 EUR-1,238
Nasdaq 1003 minn/a 4376.746,504 EUR-4,630
Dow Jones1 minn/a 3863.166,502 EUR-3,769
DAX 404 hoursn/a 5100.005,971 EUR-5,779
US Crude Oil15 minn/a 3560.005,715 EUR-5,013
US Crude Oil5 minn/a 3461.765,259 EUR-2,532
S&P 50030 minn/a 4877.085,056 EUR-1,201
FTSE 10030 minn/a 3666.674,881 EUR-2,959
FTSE 1004 hoursn/a 475.004,520 EUR-3,319
S&P 5001 hourn/a 2875.004,018 EUR-1,410
S&P 50015 minn/a 4580.003,973 EUR-1,104
FTSE 10015 minn/a 4178.053,890 EUR-2,888
DAX 401 minn/a 3863.163,237 EUR-1,501
S&P 5004 hoursn/a 5100.003,175 EUR-1,061
S&P 50010 minn/a 4470.453,170 EUR-1,322
FTSE 10010 minn/a 4667.392,788 EUR-1,184
GBP/USD15 minn/a 3557.142,575 USD-2,494
FTSE 1005 minn/a 4866.672,243 EUR-1,295
Gold4 hoursn/a 580.002,187 EUR-738
S&P 5005 minn/a 4075.002,179 EUR-896
FTSE 1003 minn/a 3571.431,812 EUR-1,208
Gold15 minn/a 3863.161,806 EUR-488
S&P 5003 minn/a 2263.641,551 EUR-1,010
Gold10 minn/a 4264.291,459 EUR-723
GoldDailyn/a 3100.001,274 EUR-403
Gold30 minn/a 3759.461,224 EUR-918
S&P 5001 minn/a 2860.71915 EUR-347
S&P 5002 minn/a 3256.25674 EUR-573

Charts

Results by run

Top 10 of 67 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Oversold ADX Filter
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 30 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

hh = Highest[13](high)
ll = Lowest[13](low)
raw = 0

21 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

ADXStochasticSMA
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The best run has only 56 trades, which is a small sample to judge it on.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Stochastic Oversold ADX Filter 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 67 market and timeframe combinations. The best run by trade count was Nasdaq 100, 30 minutes, with 56 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,112 EUR at the tested position size, against a net result of 13,410 EUR.

Does it trade long, short or both?

It only takes long trades.

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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