Scalping system #7 (Great GBP/JPY 1M scalping strategy)

Submitted by Chelo
So here is a strategy I have trying to work out fot the past month, and I seem to be getting better at it. What would be very nice, is if anyone can help me tune it a bit more.

Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:

1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)

(the template for this bollinger bands can be downloaded form this post)

Once you load your template you will notice the three sets of bollinger bands. Now, price will constantly range between these lines.

Sell strategy:

When price crosses the upper red band , at least half way to the orange band (if it gets to the yellow band is better but not as usual) Then the price will tend to retrace towards the center of the bollinger bands, you profit form this retracing.

Buy Strategy, it is the same as selling, the difference is that we will wait for the price to range between the lower red and yellow bands, and trade the retracing towards the center.

Tips: do not trade on ranging ,or quiet markets, do not trade previous to news releases. Go for 5 to 10 pips. Great system to trade between opening of london session and the closing of the japan session.

Stop Loss: since this strategy requires you to look at the screen (remember this is the 1M time frame) I tend to have two kinds of stops: time based and loss based.

Time based: Try and figure out how long will it take the market to get in your expected direction, if the time that you planned is already due, then close the order. No point on waiting for a loss...

Stop Loss: Since you are trading a very tight time frame your stops should also very very tight. Sometimes, you will profit from a 3 minute trade and you wont be able to set a proper S/L. So your stops will be given to you by your money management system...

What I would like to do is to study wether to add or not some extra indicators. I attach the results from my last week 102% profit, +80% of profitable trades.

Any help is welcome


Template is attached as Rar file and goes in your templates folder in the MT4 directory...


Edward Revy,

Copyright © Forex Strategies Revealed

What could be more confident for this system is the RSI divirgence ....

Before entering in the market you should make sure that it does RSI Divirgence and stochastic is in the extreme ...

Well, to be sure that you're going in in the right moment, I recommend to add RSI (3, Close) and look if it goes down the 70 level line (sell) or it crosses 30 line upwards (buy). That's the way you can see, if the price hits the bottom. Hope this helps a bit. (Sorry if bad English)
Best regards,

Anyone was succesfull in creating Expert Advisor for this strategy?

yes this is still working rajrech ;) i sent you an email today

Add daily pivot points to spotlight S/R levels

yes this is still working rajrech ;) i sent you an email today

hello every body,

i am new in please give me a reliable and secure scalping system to [email protected]

hi every body,

is any one having good strategy for 2012. please send me a copy to [email protected]

What broker and platform are you using? I'm kinda new to this and i can't find other brokers than

I will like to try this Trading System.
Can someone please summarize this Scraping Strategy for me.

I found that if using stochastic, 14-3-3 was the best setting to filter false signals. I also tried 5,8 and 21. But 14 was best in my back test observation.

If anyone can find a way or indicator that can help where price starts to "WALK THE BAND" this strategy would be a gold mine. This is the biggest issue. The next biggest issue is price not converging back towards middle moving average/band. Please post ideas regarding these if you have any. Thanks!

Also, I use bollitoucher indicator that gives me an alert when price touches 50,3 BB. So I can do things around the house and just wait for my loud speakers to sound off.

hi can this be used in a ranging market on a higher timeframe, 1minute provides good action even in a ranger


Are you still using this method. I just ran across it and so far it is working very well for me.


Dear Gentlemens,

I didn't had time to read all the posts about this topic, but answering to Chelo, I believe you may get one great fine tunning for this strategie if you add the stochastic oscillator with the following settings: (5,3,3), close/close, simple moving average. This settings have been of great use for me as a scalper for the last 3 years. They are very sensitive to overbought/oversell levels, just try it. Use the bigger timeframes to see the best trend. If you enter the market when the M5 and M15 are running for the same side and use the M1 to enter market using your signals and to confirm it, use the stochastic M1 when is leaving out the overbought ou oversell levels.

I really that this may help you all!

Best Regards,
Rui Monteiro

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