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Strategies / Momentum / Stochastic Reversal With StochRSI Filter

Stochastic Reversal With StochRSI Filter

The strategy buys at market when the stochastic reversal state is bullish and the smoothed Stochastic RSI is above 80, and sells short when both are bearish with the reading below 20. Positions close when the two states disagree.

MomentumLong & shortSwingDAX 401 hour
n/aProfit factor
5,394Net profit EUR
39.71%Win rate
3,979Trades
-5,299Max drawdown
1.36Avg trade

Best run of 6. DAX 40, 1 hour, spread 3, from run sweeps:2026-10-11-DAX40-1h-opt.tsv:38.

Entry rules, long

  2. The Stochastic RSI state (RSI 14, stochastic 14, smoothing 3) turns bullish when its smoothed value is above 80 and bearish below 20.
  3. A long opens at market when both states are bullish and no long position is open.

Entry rules, short

  2. The Stochastic RSI state turns bearish when its smoothed value is below 20 and bullish when above 80.
  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
InstrumentDAX 40, 1 hour
Spread3 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
DAX 40Best run1 hourn/a 3,97939.715,394 EUR-5,299
USD/JPYDailyn/a 45542.202,071,350 USD-522,400
Nikkei 225Dailyn/a 38042.1123,748 USD-16,347
Silver4 hoursn/a 1,10638.1623,319 USD-13,614
GoldDailyn/a 47142.462,201 EUR-1,010
Gold4 hoursn/a 1,13339.811,219 EUR-757

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE possrsi = 0
ONCE sincebad = 1000
ONCE sincebadr = 1000

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

61 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 5,299 EUR is large next to the net profit of 5,394 EUR.
  • 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 StochRSI Filter 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 6 market and timeframe combinations. The best run by trade count was DAX 40, 1 hour, with 3,979 trades.

How large was the drawdown?

The best run had a maximum drawdown of 5,299 EUR at the tested position size, against a net result of 5,394 EUR.

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