Strategies / Mean reversion / Stochastic Oversold Recovery Long

Stochastic Oversold Recovery Long

Buys 1 contract when both stochastic lines stay below 10 for at least 5 bars and then rise to 10 or above. Closes the long after both lines stay above 90 for at least 5 bars and then drop to 90 or below.

Mean reversionLong onlyIntradayEUR/USD1 min

n/aProfit factor

3,053Net profit USD

55.82%Win rate

249Trades

-3,019Max drawdown

12.26Avg trade

Best run of 46. EUR/USD, 1 min, spread 1, from run sweeps:2026-10-04-EURUSD-1m-opt.tsv:2.

Entry rules, long

Both smoothed %K and %D have been below 10 for at least 5 consecutive bars.

Exit rules

Both smoothed %K and %D have been above 90 for at least 5 consecutive bars.

Test conditions

Period	Up to 2026-10-04
Instrument	EUR/USD, 1 minute
Spread	1 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	2026-10-04

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
EUR/USDBest run	1 min	n/a	249	55.82	3,053 USD	-3,019
USD/JPY	4 hours	n/a	17	70.59	405,210 USD	-133,330
USD/JPY	15 min	n/a	97	72.16	331,230 USD	-149,330
USD/JPY	1 hour	n/a	51	64.71	282,830 USD	-155,900
Nikkei 225	4 hours	n/a	18	94.44	18,241 USD	-8,226
Nikkei 225	15 min	n/a	160	61.25	17,106 USD	-8,998
Nikkei 225	30 min	n/a	136	61.03	17,104 USD	-12,754
Nikkei 225	10 min	n/a	164	62.80	13,518 USD	-9,181
Nikkei 225	1 min	n/a	171	58.48	11,990 USD	-10,608
DAX 40	30 min	n/a	118	66.10	9,817 EUR	-4,409
EUR/USD	15 min	n/a	129	55.04	9,486 USD	-9,411
Silver	Daily	n/a	7	100.00	8,720 USD	-5,040
Dow Jones	5 min	n/a	138	62.32	8,687 EUR	-4,027
Nasdaq 100	1 hour	n/a	109	68.81	8,332 EUR	-3,235
Nasdaq 100	5 min	n/a	117	61.54	7,628 EUR	-2,386
Brent Crude	30 min	n/a	101	64.36	6,212 EUR	-2,993
DAX 40	4 hours	n/a	21	71.43	5,825 EUR	-3,229
Nasdaq 100	15 min	n/a	117	57.26	5,202 EUR	-4,074
FTSE 100	4 hours	n/a	23	82.61	4,283 EUR	-1,320
DAX 40	1 min	n/a	141	63.12	3,964 EUR	-1,161
Nasdaq 100	2 min	n/a	129	64.34	3,961 EUR	-2,639
Nasdaq 100	1 min	n/a	137	62.77	3,872 EUR	-1,542
Nasdaq 100	4 hours	n/a	25	72.00	3,848 EUR	-3,036
US Crude Oil	2 min	n/a	92	58.70	3,791 EUR	-1,373
Dow Jones	1 min	n/a	123	61.79	3,745 EUR	-2,631
Brent Crude	2 min	n/a	140	50.00	3,614 EUR	-1,648
Dow Jones	Daily	n/a	4	75.00	3,527 EUR	-3,349
DAX 40	Daily	n/a	30	63.33	2,944 EUR	-1,700
S&P 500	1 hour	n/a	109	69.72	2,791 EUR	-849
DAX 40	2 min	n/a	160	63.12	2,637 EUR	-2,559
S&P 500	15 min	n/a	138	66.67	2,359 EUR	-1,072
S&P 500	4 hours	n/a	21	76.19	2,023 EUR	-821
S&P 500	5 min	n/a	127	67.72	1,910 EUR	-526
Gold	30 min	n/a	53	66.04	1,632 EUR	-529
Gold	4 hours	n/a	11	90.91	1,503 EUR	-435
S&P 500	10 min	n/a	152	57.89	1,431 EUR	-925
S&P 500	30 min	n/a	122	69.67	1,367 EUR	-1,090
Gold	5 min	n/a	87	67.82	1,357 EUR	-287
S&P 500	3 min	n/a	120	61.67	1,140 EUR	-498
Gold	1 hour	n/a	39	66.67	1,022 EUR	-482
Gold	15 min	n/a	61	55.74	791 EUR	-489
S&P 500	2 min	n/a	113	55.75	732 EUR	-405
GBP/USD	3 min	n/a	194	58.25	714 USD	-501
Gold	Daily	n/a	5	100.00	694 EUR	-234
S&P 500	Daily	n/a	4	100.00	406 EUR	-114
Nasdaq 100	Daily	n/a	1	100.00	143 EUR	-62.80

Charts

Results by run

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

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Oversold Recovery Long
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Mean reversion
// Direction: Long only
// Timeframe tested: 1 minute
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE inlong = 0
ONCE overbuy = 0
ONCE oversell = 0

myRange = Highest[9](high) - Lowest[9](low)

36 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

Stochastic

Read this firstKnown weaknesses3 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 3,019 USD is large next to the net profit of 3,053 USD.
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 Recovery Long 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 by trade count was EUR/USD, 1 minute, with 249 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,019 USD at the tested position size, against a net result of 3,053 USD.

Does it trade long, short or both?

It only takes long trades.

Reversal Pattern With Chaikin Volatility

Uses the same indicator.

2.26 PF · 6,872 trades

Slow MACD Slope

Best run on the same market, EUR/USD.

6.80 PF · 7,305 trades

ATR Band

Also a mean reversion strategy.

10.31 PF · 53 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.com Stats Docs