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Strategies / Pattern / Stochastic Reversal With Price Volume Trend

Stochastic Reversal With Price Volume 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. It also needs a cumulative volume price trend above its 23-bar average for longs, or below it for shorts.

PatternLong & shortSwingUSD/JPY1 hour
n/aProfit factor
537,060Net profit USD
30.63%Win rate
5,938Trades
-283,120Max drawdown
90.44Avg trade

Best run of 5. USD/JPY, 1 hour, spread 1, from run sweeps:2026-10-11-USDJPY-1h-opt.tsv:25.

Entry rules, long

  2. The price volume trend, a running sum of percent price changes scaled by volume divided by 50000, is above its SMA(23).
  3. Both states must be +1 to buy 1 contract at market.

Entry rules, short

  2. The price volume trend, a running sum of percent price changes scaled by volume divided by 50000, is below its SMA(23).
  3. 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, 1 hour
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 run1 hourn/a 5,93830.63537,060 USD-283,120
Nikkei 225Dailyn/a 14634.2514,421 USD-11,802
DAX 40Dailyn/a 13636.035,800 EUR-4,720
GoldDailyn/a 19438.661,325 EUR-951
Gold4 hoursn/a 1,26431.571,189 EUR-1,008

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Price Volume Trend
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

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

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

53 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

StochasticSMAVolume
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 283,120 USD is large next to the net profit of 537,060 USD.

Questions

About this strategy

Can I run Stochastic Reversal With Price Volume 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 by trade count was USD/JPY, 1 hour, with 5,938 trades.

How large was the drawdown?

The best run had a maximum drawdown of 283,120 USD at the tested position size, against a net result of 537,060 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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Breakout Reversal

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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