Strategies / Trend / Stochastic Reversal With Volume Index

Stochastic Reversal With Volume Index

The strategy buys at market when the stochastic reversal state is bullish and the Negative Volume Index is above its 50-period EMA, and sells short when both are bearish. Positions close when the two states disagree.

TrendLong & shortIntradayUSD/JPY10 min

1.16Profit factor

591,740Net profit USD

36.56%Win rate

2,262Trades

-145,030Max drawdown

262Avg trade

Best run of 13. USD/JPY, 10 min, spread 1, from run pf:2026-10-12-USDJPY-10m.tsv:5.

Entry rules, long

The Negative Volume Index state turns bullish when its running sum sits above its 50-period EMA and bearish when below.
A long opens at market when both states are bullish and no long position is open.

Entry rules, short

The Negative Volume Index state turns bearish when its running sum sits below its 50-period EMA and bullish when above.
A short opens at market when both states are bearish and no short position is open.

Exit rules

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

Test conditions

Period	Up to 2026-10-12
Instrument	USD/JPY, 10 minutes
Spread	1 points
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-10-12

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
USD/JPYBest run	10 min	1.16	2,262	36.56	591,740 USD	-145,030
USD/JPY	15 min	n/a	2,246	35.40	601,420 USD	-162,850
USD/JPY	30 min	n/a	2,223	33.83	339,940 USD	-269,150
USD/JPY	1 hour	n/a	1,358	36.67	311,540 USD	-229,820
Dow Jones	4 hours	n/a	123	45.53	13,011 EUR	-7,416
DAX 40	Daily	n/a	31	48.39	5,752 EUR	-4,047
US Crude Oil	15 min	n/a	2,314	35.00	5,178 EUR	-4,345
S&P 500	Daily	n/a	26	46.15	2,030 EUR	-1,717
Gold	Daily	n/a	46	32.61	2,002 EUR	-1,136
Gold	4 hours	n/a	359	37.33	1,917 EUR	-1,025
Gold	30 min	n/a	2,186	34.35	1,671 EUR	-872
Gold	10 min	n/a	2,263	32.61	1,263 EUR	-877
S&P 500	4 hours	n/a	179	41.90	1,162 EUR	-1,091

Charts

Results by run

Top 10 of 13 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Volume Index
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: 10 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE posrev = 0
ONCE sincebad = 1000
ONCE postwo = 0
ONCE nres = 0

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

55 more lines: the entry and exit rules.

Setup

How to load it

Copy the code with the copy button on the code block.
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".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

StochasticSMAEMAVolume

Read this firstKnown weaknesses2 points

A profit factor of 1.16 leaves little room for costs beyond the spread.
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 Volume Index 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 13 market and timeframe combinations. The best run was USD/JPY, 10 minutes, with a profit factor of 1.16 over 2,262 trades.

How large was the drawdown?

The best run had a maximum drawdown of 145,030 USD at the tested position size, against a net result of 591,740 USD.

Does it trade long, short or both?

It trades both long and short.

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EMA 8 21 RSI Filtered Bracket

Best run on the same market, USD/JPY.

1.09 PF · 6,194 trades

Parabolic SAR Two-Way Crossover

Also a trend 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.com Stats Docs