Strategies / Pattern / Stochastic Reversal With Volume Oscillator

Stochastic Reversal With Volume Oscillator

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 percentage volume oscillator below its 9-bar EMA signal line, and shorts need it above.

PatternLong & shortSwingDAX 40Daily

1.35Profit factor

13,172Net profit EUR

48.87%Win rate

442Trades

-2,642Max drawdown

29.80Avg trade

Best run of 3. DAX 40, Daily, spread 3, from run pf:2026-10-12-DAX40-D.tsv:3.

Entry rules, long

The percentage volume oscillator, built from EMA(12) and EMA(26) of volume, is below its EMA(9) signal line.
Both states must be +1 to buy 1 contract at market.

Entry rules, short

The percentage volume oscillator, built from EMA(12) and EMA(26) of volume, is above its EMA(9) signal line.
Both states must be -1 to sell 1 contract short at market.

Exit rules

No stop loss or profit target is set.

Test conditions

Period	Up to 2026-10-12
Instrument	DAX 40, Daily
Spread	3 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
DAX 40Best run	Daily	1.35	442	48.87	13,172 EUR	-2,642
Nasdaq 100	Daily	n/a	456	50.00	7,583 EUR	-4,235
S&P 500	Daily	n/a	417	52.28	2,173 EUR	-924

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Stochastic Reversal With Volume Oscillator
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

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

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

56 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

Results include the spread only. Commissions and overnight financing are not included.
The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Stochastic Reversal With Volume Oscillator 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 3 market and timeframe combinations. The best run was DAX 40, Daily, with a profit factor of 1.35 over 442 trades.

How large was the drawdown?

The best run had a maximum drawdown of 2,642 EUR at the tested position size, against a net result of 13,172 EUR.

Does it trade long, short or both?

It trades both long and short.

Trend Surfer

Uses the same indicator.

1.04 PF · 10,813 trades

Heikin Ashi Color Flip

Best run on the same market, DAX 40.

1.12 PF · 3,692 trades

Turn of the Month Long

Also a pattern strategy.

1.34 PF · 77 trades

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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.com Stats Docs