Trade77; A Profitable Scalping Strategy Revealed

Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.

This is one of my personal scalping methods and I call it “5 Minute Silence Time”.
First of all I want to note that I’m not using Stochastics in my analysis and also my swing trades and I don’t like indicators at all but in this scalp method we are going to use this famous indicator as I had worked with stochastics almost 3 years before.

Method Profile:
1. EURUSD M5 Chart
2. Stochastic 14,3,3
3. 80 and 20 levels on the stochastics indicator
4. Profit target are 7 pips and 10 pips
5. Stop loss is 15 pips

How to Trade:
General rule of trading is to trade only once a day and after 15:00 New York time. After 3 pm we wait for stochastics to go above 80 or below 20 and exactly at the close of that candle we will go short or long respectively.
Look at the chart below, this was the previous signal for last day:

This is another example of this method:

There is another rule here: If at 15:00 stochastic was already above 80 or below 20 then you should wait for it to go around 60 (for the first case) and go around 40 (for the second case) and then wait for a buy or sell signal.
This is called Stochastic neutral zone in this method, so if stochastic was already in the strike zone then you should wait for it to go in the neutral zone and then wait for a signal.
Here I have to note that all signals are based on K% in stochastics, so you should wait for the K% to go above 80 or below 20 for a signal.

This method works great in low volatility market, I choose after 15:00 NY time because of this issue. So we can use this method whenever we find out price action is narrow and volume is too low such as this week and also holidays.I will write about my general idea about this issue later.

Comments are open so if you have got any ideas and opinions please do not hesitate to write it down.

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  • The second example had an entry 15 1.2975 the target would have been 7 pips which would make the target 1.2968

    According to the chart the price went to 1.2965 before bounce so it may have hit the target, it depends on the spread if it would have hit or not. Either way it would have been close.

  • Mark Toews

    Just to clarify, in the second example when you shorted after receiving the signal (>80) it would have resulted in a 30 pip loss (15 pips x 2 positions) as the positions would have been stopped out? Thanks.

  • Ken

    Does this work on the emini

  • Jdeep78

    Dear Mani,
    can u explain what  is k% in stochastics. I cant understand that.

  • 7 or 10 pips minus or plus spread?

  • Anonymous

    You are welcome Jone. No I don’t change anything. Just stick with the rules.

  • Anonymous

    Thank you Gerardo for reading my article. I would be happy if you write comments about it and also tweet back to me. Thanks and have a great WE too.

  • Thanks Mani for share, it sounds very good, and some trader said it works nice!!!!
    I will try it, and commento tu you.
    Have good WE!!

  • Anonymous

    Thank you for you comment. No as I mentioned in the article only K% is important to determine a signal. No Fridays is not recommended in my rules as market is dead 🙂
    Yes I take only the first signal as I’ve tested that first signal is the best one.

    Thank you again.

  • fx13

    Very nice strategy 🙂
    Mani, do you wait for both lines of the Stochastic to cross the 80/20 line, or just one is a valid signal as well? Do you use the strategy in Fridays as well? Are you only taking the first signal?
    Thank you for the elucidation!

  • Swolpippen

    Mani, This is a great way to take low risk trades. To date I winning 80% +. I’m testing other major pairs. The market just goes into a dead zone after about 1pm est. Talk with you soon.

  • Anonymous

    Thank you Jopito.

  • Anonymous

    Thank you too Casey. I enjoy helping traders to make pips, exactly the same as what you do in Winners Edge Trading.

  • Anonymous

    Thanks Harry, it’s really my pleasure.

  • Anonymous

    Yes Conrad, Stochastic might be a little bit different in different platforms, this is because of spreads and also platform time. Maybe the best chart is FXCM or IBFX.
    No moving averages have no impact in this method. Those were my default template.
    I’m currently working on how to find other times for this method and will inform you about that.

    Thanks for your comment.

  • Harry Leonard

    I like this one a lot Mani. I’m adding it to my arsenal of targeted systems. Thanks.

  • Stochastic looks different on my chart? perhaps you could explain?
    Also you seem to have some moving average on your chart or is that part of your stochastic indicator?

    As I’m on London time, that would be 9pm onwards or as you say days with low-volitility/volume

    I like the idea of getting in and out quickly for some profit!

    Thank you for sharing

  • Anonymous

    hahaha ,lol. Thanks Imran for your comment. I do appreciate it.



  • Anonymous

    Thank you Tim. I think we can fine tune this method and use it in other times as well. It needs more works.
    I want to thank you Tim for trying this method and I appreciate your time and supports.

  • Anonymous

    Really thanks for your comment. Yes I know some great traders who their goal is only 10pips per day. Money is money and Profit is profit. The most important thing here is to have a profitable strategy and a plan.

  • thanks Mani for sharing this strategy it is truly useful and it works.