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Strategies / Momentum / Stochastic RSI Ratio Reversal

Stochastic RSI Ratio Reversal

The strategy goes long while a 21-period average of a stochastic and RSI ratio rises, and goes short while it falls. It closes any position when the average is unchanged from the prior bar.

MomentumLong & shortSwingSilver1 hour
n/aProfit factor
870,676Net profit USD
35.36%Win rate
29,110Trades
-568,760Max drawdown
29.91Avg trade

Best run of 4. Silver, 1 hour, spread 2, from run sweeps:2026-10-11-SILVER-1h-opt.tsv:21.

Entry rules, long

  1. The 21-period average rises compared with the previous bar.

Entry rules, short

  1. The 21-period average falls compared with the previous bar.

Exit rules

  2. A rising or falling average reverses an opposite position.

Test conditions

PeriodUp to 2026-10-11
InstrumentSilver, 1 hour
Spread2 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
SilverBest run1 hourn/a 29,11035.36870,676 USD-568,760
USD/JPYDailyn/a 3,30046.451,114,500 USD-912,760
Dow JonesDailyn/a 3,26542.4817,658 EUR-15,464
GBP/USDDailyn/a 3,41546.8811,993 USD-6,764

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

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

DEFPARAM CumulateOrders = false

ONCE myK = 50

mom = close / close[9] * 100
myRsi = RSI[9](open)
ll = lowest[9](low)
hh = highest[9](high)

29 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 568,760 USD is large next to the net profit of 870,676 USD.
  • 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 RSI Ratio Reversal 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 by trade count was Silver, 1 hour, with 29,110 trades.

How large was the drawdown?

The best run had a maximum drawdown of 568,760 USD at the tested position size, against a net result of 870,676 USD.

Does it trade long, short or both?

It trades both long and short.

Related

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Trend Surfer

Uses the same indicator.

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SMA Crossover With RSI Exit

Best run on the same market, Silver.

2.13 PF · 8,999 trades

ATR Momentum

Also a momentum strategy.

n/a PF · 15,021 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.comStatsDocs