Strategies / Pattern / Stochastic Reversal With Candle Body Trend

Stochastic Reversal With Candle Body Trend

It goes long after two consecutive higher closes while stochastic %K is above 50 and below its 3-bar average, and shorts the mirror setup. Longs also need the 14-bar average of close minus open above zero, and shorts need it below zero.

PatternLong & shortSwingUSD/JPYDaily

1.57Profit factor

3,344,420Net profit USD

36.50%Win rate

863Trades

-441,435Max drawdown

3,875Avg trade

Best run of 5. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:24.

Entry rules, long

The 14-bar simple average of close minus open is above zero.
Both states must be +1 to buy 1 contract at market.

Entry rules, short

The 14-bar simple average of close minus open is below zero.
Both states must be -1 to sell 1 contract short at market.

Exit rules

No stop loss or profit target is set.

Test conditions

Period	Up to 2026-10-12
Instrument	USD/JPY, Daily
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	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	Daily	1.57	863	36.50	3,344,420 USD	-441,435
Nikkei 225	Daily	n/a	685	36.20	34,254 USD	-19,329
Silver	4 hours	n/a	2,006	30.66	27,796 USD	-16,128
Brent Crude	Daily	n/a	322	39.13	12,490 EUR	-11,669
Gold	4 hours	n/a	1,937	31.44	1,110 EUR	-978

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Candle Body Trend
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0

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

50 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

StochasticSMA

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 Reversal With Candle Body Trend 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 was USD/JPY, Daily, with a profit factor of 1.57 over 863 trades.

How large was the drawdown?

The best run had a maximum drawdown of 441,435 USD at the tested position size, against a net result of 3,344,420 USD.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

1.09 PF · 6,194 trades

Lower Low Dip Buyer

Also a pattern strategy.

1.58 PF · 345 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