Mean Reversion15m Higher Timeframe + 3m ExecutionComplexity: Intermediate
Multi-Timeframe Dual Stochastic Filter
15-min Stochastic dictates higher timeframe trend bias, while 3-min Stochastic executes pullbacks within the dominant trend.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
Higher Timeframe Stoch_15m > 50 (Bullish Context); Lower Timeframe Stoch_3m dips < 25 then crosses up
Deterministic Entry Rules
Long Entry (BUY)
- ✓15m Stochastic is rising and above 50 (Higher Timeframe Bullish).
- ✓3m Stochastic dips below 25 and crosses back above %D line.
Short Entry (SELL)
- ✓15m Stochastic is falling and below 50 (Higher Timeframe Bearish).
- ✓3m Stochastic rallies above 75 and crosses back below %D line.
Exit Criteria & Stop Loss Protection
Initial Stop LossRecent 3m swing low.
Target Profit1.5% - 2.2% target.
Risk/Reward Expectancy1 : 2.2
Strategy Configuration Specs
Market Segment:BankNifty Futures & Weekly Options
Candle Timeframe:15m Higher Timeframe + 3m Execution
Risk-to-Reward Ratio:1 : 2.2
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
Stochastic (14, 3, 3) 15mStochastic (14, 3, 3) 3mEMA (50)
Risk Management Controls
- •Automatic cancel if 15m Stochastic reverses.
Target Trader Profile:Multi-timeframe traders looking for aligned high-probability entries.