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Strategies / Pattern / Stochastic Reversal With Positive Volume Index

Stochastic Reversal With Positive Volume Index

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 need the positive volume index above its EMA(255), shorts need it below, and no trades occur until after 260 bars.

PatternLong & shortIntradayUSD/JPY10 min
n/aProfit factor
296,990Net profit USD
29.55%Win rate
3,347Trades
-150,230Max drawdown
88.73Avg trade

Best run of 7. USD/JPY, 10 min, spread 1, from run sweeps:2026-10-11-USDJPY-10m-opt.tsv:31.

Entry rules, long

  2. The positive volume index, a running sum of percent price changes on bars with higher volume, is above its EMA(255).
  3. No trades are taken until after 260 bars have passed.
  4. Both states must be +1 to buy 1 contract at market.

Entry rules, short

  2. The positive volume index, a running sum of percent price changes on bars with higher volume, is below its EMA(255).
  3. No trades are taken until after 260 bars have passed.
  4. Both states must be -1 to sell 1 contract short at market.

Exit rules

  2. No stop loss or profit target is set.

Test conditions

PeriodUp to 2026-10-11
InstrumentUSD/JPY, 10 minutes
Spread1 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
USD/JPYBest run10 minn/a 3,34729.55296,990 USD-150,230
USD/JPY30 minn/a 3,12530.30358,870 USD-224,400
Silver4 hoursn/a 55030.1836,364 USD-12,320
GoldDailyn/a 7534.671,521 EUR-1,507
Gold4 hoursn/a 50030.001,518 EUR-1,092
Gold1 hourn/a 1,68230.261,436 EUR-1,326
Gold5 minn/a 3,20927.421,185 EUR-1,045

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Positive Volume Index
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

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

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

54 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

StochasticSMAEMAVolume
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 150,230 USD is large next to the net profit of 296,990 USD.

Questions

About this strategy

Can I run Stochastic Reversal With Positive Volume Index 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 7 market and timeframe combinations. The best run by trade count was USD/JPY, 10 minutes, with 3,347 trades.

How large was the drawdown?

The best run had a maximum drawdown of 150,230 USD at the tested position size, against a net result of 296,990 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