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Strategies / Pattern / Stochastic Reversal With RSI Momentum

Stochastic Reversal With RSI 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 20-period RSI of the 20-bar rate of change above 70, and shorts need it below 30.

PatternLong & shortIntradayUSD/JPY10 min
1.20Profit factor
547,430Net profit USD
39.68%Win rate
1,434Trades
-99,540Max drawdown
382Avg trade

Best run of 10. USD/JPY, 10 min, spread 1, from run pf:2026-10-12-USDJPY-10m.tsv:4.

Entry rules, long

  2. The RSI(20) of the 20-bar rate of change is above 70.
  3. Both states must be +1 to buy 1 contract at market.

Entry rules, short

  2. The RSI(20) of the 20-bar rate of change is below 30.
  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 2026-10-12
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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run10 min1.20 1,43439.68547,430 USD-99,540
USD/JPYDailyn/a 9340.861,744,710 USD-448,700
USD/JPY30 minn/a 1,43538.82441,170 USD-249,630
Silver4 hoursn/a 23541.7042,052 USD-14,357
Nikkei 225Dailyn/a 8242.6839,123 USD-26,869
DAX 4030 minn/a 1,52439.9012,018 EUR-5,359
US Crude Oil1 hourn/a 69940.776,457 EUR-5,538
S&P 500Dailyn/a 10445.193,685 EUR-1,273
Gold30 minn/a 1,41240.081,939 EUR-637
Gold5 minn/a 1,45636.471,496 EUR-803

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
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

StochasticSMARSIMomentum
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 RSI 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 10 market and timeframe combinations. The best run was USD/JPY, 10 minutes, with a profit factor of 1.20 over 1,434 trades.

How large was the drawdown?

The best run had a maximum drawdown of 99,540 USD at the tested position size, against a net result of 547,430 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