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Strategies / Pattern / Stochastic Reversal With Signal To Noise

Stochastic Reversal With Signal To Noise

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 signal to noise value above its 29-bar average, and shorts need it below.

PatternLong & shortIntradayUSD/JPY10 min
n/aProfit factor
341,420Net profit USD
35.42%Win rate
3,837Trades
-216,130Max drawdown
88.98Avg trade

Best run of 11. USD/JPY, 10 min, spread 1, from run sweeps:2026-10-11-USDJPY-10m-opt.tsv:36.

Entry rules, long

  2. The signal to noise value, built from the reciprocals of the last 20 closes, is above its 29-bar SMA.
  3. Both states must be +1 to buy 1 contract at market.

Entry rules, short

  2. The signal to noise value, built from the reciprocals of the last 20 closes, is below its 29-bar SMA.
  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, 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 tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest run10 minn/a 3,83735.42341,420 USD-216,130
USD/JPYDailyn/a 25339.532,037,780 USD-518,500
USD/JPY30 minn/a 3,73836.97624,310 USD-371,750
EUR/USDDailyn/a 24539.5966,741 USD-61,661
Nikkei 225Dailyn/a 21239.6227,711 USD-17,161
Brent CrudeDailyn/a 9638.5417,997 EUR-6,721
US Crude OilDailyn/a 20041.5012,103 EUR-11,234
DAX 4030 minn/a 3,82436.798,994 EUR-6,109
Gold30 minn/a 3,75435.142,649 EUR-1,093
GoldDailyn/a 25538.041,811 EUR-1,240
Gold1 hourn/a 2,31235.641,220 EUR-1,186

Charts

Results by run

Top 10 of 11 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000

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

56 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

StochasticSMA
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 216,130 USD is large next to the net profit of 341,420 USD.

Questions

About this strategy

Can I run Stochastic Reversal With Signal To Noise 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 11 market and timeframe combinations. The best run by trade count was USD/JPY, 10 minutes, with 3,837 trades.

How large was the drawdown?

The best run had a maximum drawdown of 216,130 USD at the tested position size, against a net result of 341,420 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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Breakout Reversal

Also a pattern strategy.

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See how ProRealAlgos combines strategies like this into one automated portfolio.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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