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Strategies / Momentum / Stochastic Reversal With RSI Price Level

Stochastic Reversal With RSI Price Level

The strategy buys at market when the stochastic reversal state is bullish and the close is above a price level that would set RSI(14) at 50, and sells short when both are bearish. Positions close when the two states disagree.

MomentumLong & shortSwingUSD/JPYDaily
1.33Profit factor
2,066,040Net profit USD
24.94%Win rate
846Trades
-506,450Max drawdown
2,442Avg trade

Best run of 4. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:32.

Entry rules, long

  2. The RSI price level state turns bullish when the close is above the price that would put RSI(14) at 50, and bearish when below it.
  3. A long opens at market when both states are bullish and no long position is open.

Entry rules, short

  2. The RSI price level state turns bearish when the close is below the price that would put RSI(14) at 50.
  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 2026-10-12
InstrumentUSD/JPY, Daily
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 runDaily1.33 84624.942,066,040 USD-506,450
Silver4 hoursn/a 1,86722.8234,190 USD-17,643
Nikkei 225Dailyn/a 67128.6131,201 USD-14,857
Brent CrudeDailyn/a 33526.5715,884 EUR-9,778

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With RSI Price Level
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Momentum
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE postwo = 0
ONCE sincebad = 1000
ONCE auc = 1
ONCE adc = 1

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

66 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

StochasticSMARSI
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Stochastic Reversal With RSI Price Level 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 4 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.33 over 846 trades.

How large was the drawdown?

The best run had a maximum drawdown of 506,450 USD at the tested position size, against a net result of 2,066,040 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