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Strategies / Momentum / Stochastic Reversal With RSI Pivot

Stochastic Reversal With RSI Pivot

The strategy buys at market when the stochastic reversal state is bullish and the pivot oscillator is above 50, and sells short when both are bearish with the oscillator below 50. Positions close when the two states disagree.

MomentumLong & shortSwingGBP/USD4 hours
n/aProfit factor
5,085Net profit USD
31.24%Win rate
2,865Trades
-3,483Max drawdown
1.77Avg trade

Best run of 5. GBP/USD, 4 hours, spread 1.5, from run sweeps:2026-10-11-GBPUSD-4h-opt.tsv:13.

Entry rules, long

  2. The pivot oscillator state turns bullish above 50 and bearish below 50, using RSI(14) with a 200-period SMA regime filter.
  3. A long opens at market when both states are bullish and no long position is open.

Entry rules, short

  2. The pivot oscillator state turns bearish when its value is below 50, using RSI(14) with the 200-period SMA regime filter.
  3. A short opens at market when both states are bearish and no short position is open.

Exit rules

  2. An open short closes at market when the two states are no longer both bearish.

Test conditions

PeriodUp to 2026-10-11
InstrumentGBP/USD, 4 hours
Spread1.5 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
GBP/USDBest run4 hoursn/a 2,86531.245,085 USD-3,483
USD/JPYDailyn/a 88830.291,472,250 USD-638,830
Silver4 hoursn/a 2,02229.1323,648 USD-15,516
Brent CrudeDailyn/a 36335.8113,682 EUR-5,871
Gold4 hoursn/a 1,98630.26884 EUR-858

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With RSI Pivot
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: 4 hours
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
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

StochasticRSISMA
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 3,483 USD is large next to the net profit of 5,085 USD.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Stochastic Reversal With RSI Pivot 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 GBP/USD, 4 hours, with 2,865 trades.

How large was the drawdown?

The best run had a maximum drawdown of 3,483 USD at the tested position size, against a net result of 5,085 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