Sexy Stochastic Strategy – Most Underrated But Best Forex Trading Strategy

The Stochastic Technique is one of the best forex trading methods that I have actually ever discovered online. The person that produced this system is an individual that goes by the manage “Boxingislife.” I personally have evaluated out his approaches and to amaze, it really lives up to its name. I happened to re-post the established and trading rules that he displays here numerous traders will have access to it.

The Set-Up

First Stochastics called the 20:




Format: royal blue density is 4, signal line dotted thickness is 1

2nd stochastics, called the 50, in the same window.




Format: orange red very same density and everything as 20

3rd stochastics, called the 5, in the same window. this one is for entry.




Uptrend: you desire the 20 to be crossed up with its signal line and the 50 to be doing the very same.

Extra hindsight: this is not required however when the 20 is above the 50 then that’s the first hint the trend is up

Attention: sometimes the 20 and 50 are truly near each other which must make you careful about taking trades.

Taking trades


We want the 50 to enter into overbought, essentially, we are searching for a pullback. As quickly as the 5 cross back down we go into. if a nice tiny little combination formed and 20 and 50 are trending down and well then enter at that even if the 5 did not make it to overbought, we get in when it crosses back down.


We desire the 50 to enter into oversold, generally we are looking for a pullback. As quickly as the 50 cross back up we enter. If a nice small little debt consolidation formed and 20 and 50 are trending up and well then get in at that even if the 50 did not make it to oversold, we enter when it crosses back up.



– the cross of the 20 and 50 is not so trusted. like an MA cross it can be challenging. but its good to look at because it can keep u away from bad trades.

– when the 20 cross its signal line, take a look at how high its going up or down and also look at the space between the main line and the signal. The larger the area the much better the trade will be. Same with the slope the steeper it is the much better. This is things that after a couple of examples you will learn to see on your own and you will understand when its great and stylish and when its being naughty.

– the 5 does not need to pull back all the way into oversold or overbought area. wait on a debt consolidation of price or for stochs to cross then go into. in a strong pattern u can easily see when price stalls before continuing.

-I wait on the 5 to cross and the candle to close when it’s not the best setup. for instance, if 20 and 50 are above 80 indicates it’s an uptrend but if they crossed their signals down indicates its beginning to trend down so in that case to be more on the safe side I await the bar to close and the 5 to cross.

Otherwise, if everything is pointing for a great trade then I get in once price has actually consolidated or when I see a reversal bar the 100 stochastic is mainly for time-frames of 1h or longer. it’s simply extra verification

ideal long trade:

20 cross the 50 up.

20 and 50 both crossed their signal line up and are sloped nicely

5 pulls back all the way into oversold while cost is stalling and combining.


For anyone attempting this system I suggest staying with 2-3 couple with 5- and 15-min chart each. You do not need to take a look at more otherwise you will go nuts. I generally view gbpusd and usdchf on 5 and

15 however I look at other pairs and timeframes and take trades. However I highly recommend to stick to 5 and 15 minutes on 2-3 sets I believe the primary thing is to get in GOOD trades and MINIMIZE your losses! Get that under

control and the rest will form

Stops and Exits:

A good and easy method to get out is when the 50 stochastics goes oversold or overbought. You can leave and wait to see if another signal is occurring.

I also take in consideration the time frame I am using if it is 5 or 15 then I go for 15-20 pips primarily 15. Stop is normally 10-15, however given that I only look for the very best setups then my hit rate is quite high.

A common stop on gbpjpy would be 20-25 pips with a target of around the exact same or a bit greater around 30 pips. But trading gbpjpy on 15 minutes chart is a bit scary. You need to include the spreads or at least part of it to an already decent stop or target. Similar to exit methods. Throughout the Asian session or towards the end of the US session I” m just trying to find 10-15 pip gains since there isn” t much action. During the London Open through London Close you get much more action so I attempt to get anywhere from 25-50 pips. Everything depends on what I see establishing on the charts and the candle light formations. If I see hammers, doji” s, railroad track, and so on. Then I go ahead and take my revenues then typically since a reversal could be showing up. I think the primary thing is to get in GOOD trades and reduce your losses! Get that under control and the rest will form.

Look for a few things:

· time of day

· set” s daily range

· how excellent of a setup it is

· combination

· for 5 to get to a extreme number

Which sets

I primarily concentrate on gbpusd usdchf gbpjpy, eurjpy, while checking some others from time to time like eurusd, usdjpy, audusd. However, I try to stick to 2-3 pairs. No more otherwise I will go ridiculous. I have actually been trading this for a number of months using just the very best setups and adhering to the rules.

Overbought and Oversold

When it comes to the pull backs when the 20 and 50 are oversold or overbought that’s the slingshot system by buffy. It’s a high portion trend trade. I also try to find those but my primary setup and best trade is the examples I have actually published in here.

Numerous amount of time

Usually, the longer time frame is the one with the better results however that is not constantly the case.

Two things off the top of my head:

1. If the 1h is not up or down and the 15 is down then you are going to seek to short and

vice versa.

2. If there’s opposite signals then search for how cost is behaving: is price trending up strongly? is there any divergence? things like that however an even easier method to prevent all this mess is do not trade that pair easy as that. Which is what I do often.

The more confirmation the much better however in some cases looking into it too much, well to me it makes me want to not trade anymore.

There is lots of pairs with at least 1 ideal setup every day that concurs with a greater amount of time. No requirement to take a trade and fidget the entire time.

(Issue: My main problem is attempting to determine the very best timespan to take the signal, due to the fact that not only exists at least 1 perfect set up in many sets per day, however there likewise seems to be a minimum of more than 1 best setup in various timeframes for the same pair, e.g. going

short on a 4H chart, and going long on a 15M chart!!)

There is no perfect timeframe. Each has its own characteristics and what not. Each timeframe has its own stops and targets and all this stuff. It can depend on your availability. If you are

available around volatile times for a while then trade off the 15 min unless there is a great 1h signal. If you can periodically inspect then the 1h chart should give nice trades pretty often. It likewise depends on the pair. Do not trade a couple with a 15-pip spread off the 5 min chart. That is simply asking to lose money. And do not trade the euro for instance off the 5 or 15 minutes during the Asian session. Your opportunities of that trade making pips is really low. So, it truly depends on all this stuff and I can’t really inform u what to do and when and what to

trade since one thing may work for me however not for you. But in the end, you can make all timeframes work and any set. I suggest you begin with 15 min and 1h and if you do not have a lot of time study the 1h and 4h charts. When it comes to contradicting signals on various amount of time, do not puzzle yourself with too many timeframes. If you are uncertain simply do not trade! Simple as that! It’s what I do. Even if the 15 is pointing down however the 1h is pointing up does not suggest one is going to win. The price could go down according to 15 then increase. Keep in mind different time frames are various timeframes and they will oppose each other in some cases. Also try not to take a look at a 5 minutes chart then a 4h chart for verification, that’s simply ridiculous! For 15 min attempt validating with 1h and for 1h attempt confirming with 4h. Also trading the 5 min chart can be satisfying. I consider it sophisticated and do not take a look at it excessive. A lot of incorrect signals.

Individuals keep it simple. Trust me do not look into it excessive there is nothing perfect! If the trade fails it stops working even the very best traders will have bad trades, it occurs.

The everyday amount of time

The everyday is a completely various story. I will be honest: taking trades off the day-to-day is hard and confusing and challenging. Even if I am gone nonstop, I would rather take trades off the 4h. Believe me the 4h is fantastic and it gives you lots of time to get in a trade and exit a trade and it moves in big amounts. But if you need to trade the daily then yeah, I guess you can simply compromise the 5 stochastic with verification from 20 and 50. However I indicate the settings are fine however what I see is the truly excellent setups are really unusual and you normally require to look for reversal bars, pin bars, hidden divergence and things like that and either method you’re going to have a huge stop. Sorry I really do not trade the everyday frequently. I simply look at it sometimes for pattern direction.

Another thing you can do is wait just for the ideal setups and trade like 10 various pairs. I make sure the best setup will happen on a pair fairly typically.

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