Strategies / Pattern / Stochastic Reversal With Money Flow Filter

Stochastic Reversal With Money Flow Filter

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. It also needs a money flow reading above zero for longs, or below zero for shorts.

PatternLong & shortSwingDAX 40Daily

n/aProfit factor

5,614Net profit EUR

53.54%Win rate

198Trades

-3,830Max drawdown

28.35Avg trade

Best run of 1. DAX 40, Daily, spread 3, from run sweeps:2026-10-11-DAX40-D-opt.tsv:70.

Entry rules, long

Each bar's money flow term is (close minus open) divided by (high minus low), times volume.
The EMA(10) of the 10-bar money flow sum is above the EMA(3) of the 3-bar sum.
Both states must be +1 to buy 1 contract at market.

Entry rules, short

Each bar's money flow term is (close minus open) divided by (high minus low), times volume.
The EMA(10) of the 10-bar money flow sum is below the EMA(3) of the 3-bar sum.
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 2026-10-11
Instrument	DAX 40, Daily
Spread	3 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	2026-10-11

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	Daily	n/a	198	53.54	5,614 EUR	-3,830

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Money Flow Filter
// 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)

59 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

StochasticSMAEMAVolume

Read this firstKnown weaknesses3 points

No profit factor is available, because only sweep results exist for this strategy.
The maximum drawdown of 3,830 EUR is large next to the net profit of 5,614 EUR.
It was only tested on DAX 40, so there is no evidence from other markets.

Questions

About this strategy

Can I run Stochastic Reversal With Money Flow 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 one combination, DAX 40, Daily, with 198 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,830 EUR at the tested position size, against a net result of 5,614 EUR.

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

Heikin Ashi Color Flip

Best run on the same market, DAX 40.

1.12 PF · 3,692 trades

Breakout Reversal

Also a pattern strategy.

n/a PF · 459 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