Strategies / Pattern / Stochastic Reversal With Relative Momentum

Stochastic Reversal With Relative Momentum

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 relative momentum index below 40, and shorts need it above 70.

PatternLong & shortSwingSilver1 hour

5.96Profit factor

577,155Net profit USD

44.46%Win rate

830Trades

-12,573Max drawdown

695Avg trade

Best run of 21. Silver, 1 hour, spread 2, from run pf:2026-10-12-SILVER-1h.tsv:15.

Entry rules, long

The relative momentum index, built from 20-bar momentum, is below 40.
Both states must be +1 to buy 1 contract at market.

Entry rules, short

The relative momentum index, built from 20-bar momentum, is above 70.
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	Silver, 1 hour
Spread	2 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
SilverBest run	1 hour	5.96	830	44.46	577,155 USD	-12,573
USD/JPY	30 min	n/a	1,450	43.17	316,460 USD	-171,190
USD/JPY	10 min	n/a	1,449	41.96	180,980 USD	-129,320
Dow Jones	4 hours	n/a	80	58.75	25,617 EUR	-6,675
Nikkei 225	Daily	n/a	79	43.04	22,199 USD	-14,220
Dow Jones	Daily	n/a	99	54.55	21,076 EUR	-9,474
DAX 40	30 min	n/a	1,529	45.45	12,993 EUR	-4,830
Nasdaq 100	30 min	n/a	1,452	44.15	8,653 EUR	-4,023
DAX 40	4 hours	n/a	217	43.78	8,443 EUR	-5,362
DAX 40	Daily	n/a	85	52.94	7,681 EUR	-7,528
Nasdaq 100	Daily	n/a	81	53.09	6,857 EUR	-5,632
US Crude Oil	15 min	n/a	1,558	44.09	6,595 EUR	-3,914
Brent Crude	Daily	n/a	35	45.71	6,096 EUR	-5,285
GBP/USD	4 hours	n/a	293	48.12	5,762 USD	-3,647
FTSE 100	4 hours	n/a	209	48.80	5,621 EUR	-2,097
US Crude Oil	30 min	n/a	1,393	44.01	5,093 EUR	-4,535
GBP/USD	1 hour	n/a	1,319	46.10	4,773 USD	-2,894
S&P 500	Daily	n/a	102	46.08	4,118 EUR	-1,273
S&P 500	1 hour	n/a	929	45.64	2,453 EUR	-988
S&P 500	4 hours	n/a	212	50.47	1,957 EUR	-963
Gold	30 min	n/a	1,459	42.15	1,606 EUR	-837

Charts

Results by run

Top 10 of 21 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0
ONCE xmu = 1
ONCE xmd = 0

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

60 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

StochasticSMAMomentum

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 Relative Momentum 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 21 market and timeframe combinations. The best run was Silver, 1 hour, with a profit factor of 5.96 over 830 trades.

How large was the drawdown?

The best run had a maximum drawdown of 12,573 USD at the tested position size, against a net result of 577,154 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

SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 trades

Turn Of The Month

Also a pattern strategy.

4.86 PF · 47 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