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Strategies / Pattern / Stochastic Reversal With Fast Stochastic

Stochastic Reversal With Fast Stochastic

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 7-bar stochastic %K above 20, and shorts need it at or below 20.

PatternLong & shortSwingSilver4 hours
n/aProfit factor
21,086Net profit USD
30.09%Win rate
2,599Trades
-18,705Max drawdown
8.11Avg trade

Best run of 3. Silver, 4 hours, spread 2, from run sweeps:2026-10-11-SILVER-4h-opt.tsv:36.

Entry rules, long

  1. The 7-bar stochastic %K is above 20.
  2. Both states must be +1 to buy 1 contract at market.

Entry rules, short

  1. The 7-bar stochastic %K is at or below 20.
  2. Both states must be -1 to sell 1 contract short at market.

Exit rules

  1. No stop loss or profit target is set.

Test conditions

PeriodUp to 2026-10-11
InstrumentSilver, 4 hours
Spread2 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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
SilverBest run4 hoursn/a 2,59930.0921,086 USD-18,705
USD/JPYDailyn/a 1,18333.981,510,400 USD-648,090
DAX 404 hoursn/a 2,44133.278,332 EUR-4,859

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Fast Stochastic
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

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

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

52 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 18,705 USD is large next to the net profit of 21,086 USD.

Questions

About this strategy

Can I run Stochastic Reversal With Fast Stochastic 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 3 market and timeframe combinations. The best run by trade count was Silver, 4 hours, with 2,599 trades.

How large was the drawdown?

The best run had a maximum drawdown of 18,705 USD at the tested position size, against a net result of 21,086 USD.

Does it trade long, short or both?

It trades both long and short.

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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