Thesis
Buy a slow stochastic %K cross above %D inside the oversold zone, exit on the mirror.
Fits Mean reversion setups — works best when the underlying market behavior matches the thesis, and breaks down when it doesn't. Pair with the backtester's walk-forward mode before committing real capital.
Higher trade frequency than RSI mean reversion and louder noise. Fits range-bound regimes; produces fast small wins and small losses. Trend regimes can be expensive — the oscillator stays pinned for many bars.
YAML rule-set
Paste this into the Strategy Designer's Text tab, or use the dashboard button above to load it as a template.
name: stochastic_revert
weight: 1.0
long_only: true
indicators:
stoch: {kind: stochastic, period: 14, smooth_d: 3}
entry:
combine: AND
rules:
- {lhs: {indicator: stoch, field: k}, op: crosses_up, rhs: {indicator: stoch, field: d}}
- {lhs: {indicator: stoch, field: k}, op: lt, rhs: {value: 30.0}}
exit:
combine: OR
rules:
- {lhs: {indicator: stoch, field: k}, op: crosses_down, rhs: {indicator: stoch, field: d}}
- {lhs: {indicator: stoch, field: k}, op: gt, rhs: {value: 80.0}}
risk:
stop_loss_pct: 0.025
take_profit_pct: 0.04
cooldown_bars: 4
Indicators
stochSlow Stochastic (period 14, smooth 3)Two-line oscillator that compares the current close to the high/low range over the lookback. %K is the raw line; %D is its 3-bar SMA smoother. Crosses inside the 0-20 / 80-100 extremes are read as reversal cues.
Entry conditions
The bot opens a position the bar after every condition below has fired.
- %K crosses above %D AND
- Both lines are inside the oversold zone (%K < 30).
Exit conditions
Any of the conditions below will close the position.
- %K crosses back below %D, OR %K pushes above 80 (overbought).
- Hard 2.5% stop; 4% take-profit.
Expected behavior
Higher trade frequency than RSI mean reversion and louder noise. Fits range-bound regimes; produces fast small wins and small losses. Trend regimes can be expensive — the oscillator stays pinned for many bars.
Equity-curve character, not a return forecast. Backtests are not promises about live performance.
Try it on your own data
Open the template in the dashboard to backtest it on BTC, ETH, or any CCXT symbol — or copy the YAML into the Strategy Designer to edit it first.
Past behavior on backtests is not a guarantee of future performance. Markets change; rule sets need re-validation. Trade at your own risk.