List of 10 to 50 Pips a Day Forex Strategy for Day Traders

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In forex trading, strategy is essential. Before you even look at the chart, you want to know when to open and close your trades. You set yourself up for failure without a plan. There are various tactics, and they all function differently depending on the situation, just as with any other business effort.

For forex trading to be profitable, a really well trading strategy is essential. A trading strategy is a system of rules that, in response to specific conditions in price movement, identifies the exact moment to enter and leave a transaction. It’s a common belief that a plan that doesn’t go according to plan will fail, and forex trading is no exception.

To achieve various trading outcomes, a variety of lucrative forex trading techniques can be applied. A novel 50 pip per day, 10 pip per day, 20 pip per day, and 30 pip per day trading method is described in this article.

50 Pips a Day Set and Forget Strategy

One of the simplest trading techniques is the “50 pips a day forex strategy,” which is used to identify the direction of price movement early in a trading day without the need for careful study and monitoring.

As the name suggests, it is a day trading technique on the 1hr period with the objective of reducing the intraday volatility of a currency pair by around half.

Although other currency pairs are not excluded, the approach was created to trade the major currency pairs, primarily the EUR/USD and GBP/USD. This trading strategy’s implementation is significantly different from most others because it doesn’t employ indicators to analyze or predict the course of price movements.

The technique has been shown to provide successful results on Forex pairs with an average daily range of 100 pip or more without the use of any indicators.

How to trade the 50 pips a day strategy

If the desired currency pair meets the aforementioned requirements (>= 100 Pips ADR) for a 50 pip per day trading strategy. A currency pair’s average daily range (ADR) is simply the average daily range (Pip difference between the high and low) over a predetermined number of trading days. In order to determine the ADR value, you must: Obtain the peak and low prices for each trade day over a certain time period (preferably 5 trading days). Divide the amount by the number of trading days accounted for to get the distance between each daily high and low (in this case 5 trading days).

To put this approach into practice, a straightforward trading plan must be followed in order to generate a high probability buy or sell trade. These are a few of them:

  1. Look for currency pairs with an average daily range of 100 pip or greater by opening the daily chart.
  1. Reduce the timeframe to one hour and set your time zone to GMT.
  1. Watch for the opening and closing of the 1 hour timeframe candlestick at 7 am GMT.
  1. at the end of the hourly candlestick at 7 AM. Open two open orders right away. a sell stop order and a buy stop order, both placed two pip above the candlestick’s high (2 pips below the low of the candlestick). Each has a profit objective of 50 pip and a stop loss of 5 to 10 pip (above and below the candlestick’s peak and low).
  1. Once these four steps have been implemented. One of the pending orders will be activated as the price moves approaching the high or low of the 7am candlestick. Let the price action take care of the rest, or you might choose to close one of the open orders once the other has been executed.
  2. Continue in this manner each trading day. If the method consistently generates gains for you, you should keep using it; but, if at any point outcomes are fluctuating or price movement is stabilizing, you may need to close the trade before the end of the day.

Trading Example

Find a forex pair with an ADR greater than 100 first.

As we can see from the daily chart above, USD/CAD has ADR of 123 which is greater than 100, that means USD/CAD can be use for this strategy.You can use this strategy on other forex pair with ADR greater than 100.

Next, we’ll set the entry point, stop loss, and take profit point.

At the end of the 7 am hourly candlestick on the hourly chart, using USD/CAD from the example below. While the sell stop order (2 pips below the candlestick’s low) is cancelled, a buy stop order (2 pips above the high of the candlestick) is activated and reaches our 50 pip target.

Limit order setup to complement the 50 pips a day trading approach

The peak of the 7 AM candlestick typically serves as a level of support when price action retraces to it after breaking above it. In contrast, the candlestick’s low frequently serves as a level of resistance when price movement retraced to it after breaking below it.

Set a buy limit order at the high of the 7 am candlestick if price movement does trade above that level. This order will have a 50 pip profit target and a stop loss located directly below the candlestick.

Additionally, place a sell limit order at the candlestick’s low if price movement does trade below the candlestick’s low at 7 a.m. This order will have a 50 pip profit target and a stop loss located slightly above the candlestick.

Advantages of this trading approach

  1. The approach is more akin to a set-and-forget approach to forex trading. Nothing else needs to be done until the next day after all the setups have been made. This drastically cuts down on the amount of time you spend staring at charts and using various tools and indicators to analyze price movement, pricing trends, and news events.
  1. This approach doesn’t need any indicators, thus it doesn’t need to be constantly checking to see if and when to stop trades, nor does it need to search for the ideal setup because the setup is already there at 7 am GMT every trading day of the week.
  1. The trading strategy’s tight stop loss and daily setup limit prevent traders from overtrading, which is beneficial for dramatically minimizing risk exposures.
  1. The amount of FX pairs the day trader is considering that match the requirements to trade the method determines how many trades or pending orders can be opened daily. As a result, a trader can only place two trades each day if they concentrate on two forex pairings.

Disadvantages of this trading approach

  1. If you prefer to take more than one intraday trade setting, if you trade a number of currency pairings with a variety of moves and trading patterns, then this approach is not for you. This technique only offers one setup during the course of a trading day.
  1. Although there are few forex trading strategies that promise more than 50 pips in profit objective per day, there aren’t many forex trading strategies that guarantee such modest risk and returns. The profit objective of trading this strategy is capped at 50 pips per day, making it a very modest day trading model.
  1. Your trades might lose money on some days, and the strategy won’t let you place another one.
  1. How about the bear and bull traps? When your transaction is activated and immediately stopped out as a bull trap or bear trap, this occurs.

The 50 pip per day forex strategy’s risk management procedures

The 50 pip per day forex trading strategy has a very clear setup and is simple to implement. Although the technique has a history of steady performance, it is also possible to lose money when using it, just like with any other forex trading approach.

In light of this, it is crucial that traders adhere to precise risk management guidelines like the ones listed below.

  1. Never take on more risk than you can bear to lose.
  2. With this forex trading method, you should never risk more than 2% of the value of your trading account. when you are a professional and have been quite accustomed to the technique over a period of time, say three months. No more than 5% of your trading equity should be put at risk.
  3. Leveraging your trades can significantly boost both your profits and losses. Use minimal leverage that won’t deplete more than 5% of your trading account’s equity at all times.

Most brokers enable the use of a trailing stop order to follow a trade that is currently profitable. This feature can be used to protect a transaction that is already profitable so that it does not turn negative in the event of any anticipated or unanticipated unpredictable volatility or reversal of price trend.

The trailing stop goes along with the asset price whenever it shifts in your favor, assisting you in protecting your gains and limiting your losses.

50 Pips a Day Scalping Strategy

Scalping is a task that calls for quick and precise speed. Additionally, scalpers must adhere tightly to their scaling method in order to succeed.

Use momentum indicators for scalping, such as the RSI or another MACD indicator. Additionally, using indicators on price charts is recommended. The pivot points, the Bollinger bands, and the MA are a few popular examples. They can be used to determine both resistance and support levels.

Similar to the 50 pip a day trading technique, the scalping strategy largely relies on the traders’ own technical analysis and short-term price changes. If you don’t have a decent risk management technique, this strategy might be relatively risky because large leverage is employed to increase the profit value of each trade.

How 50 pips a day scalping strategy works

We need a currency pair that moves a lot in order to implement this scalping approach. A fantastic one is GBP/JPY. It may change by 150 to 200 pip changes per day. Pick a stable couple at your peril. When the market is flat or the trend is ambiguous, this method is completely ineffective. Let’s check out the process now:

  • Time Frame: 5 minutes
  • Currency pair: GBP / JPY
  • Technical Indicators: Exponential Moving Average 25 (EMA25)
  • Sessions: London and New York

What exactly is EMA? The EMA is one of the two most prevalent types of Moving Average (MA) that are employed. It is a type of indicator that is often employed in technical analysis. The EMA smooths the price line further by removing random elements by taking the average of the closing price over a given time period. The EMA assists us in identifying market trends as well as resistance and support levels.

Only place buy orders if:

  • The EMA 25 creates an angle of at least 30 degrees.
  • Price surpassed the EMA 25.
  • When the bullish pin bar ends, purchase.
  • Stop Loss: At least 10 pips below the bottom of the pin bar.
  • Profit target: 50 pips.

Do not place sell orders unless:

  • The EMA25 creates an angle of at least 30 degrees.
  • Price dropped below EMA25.
  • When the bearish pin bar has finished, sell.
  • Stop Loss: At least 10 pips above the top of the pin bar.
  • Profit target: 50 pips.

30 Pips a Day Forex Strategy

A trading approach called 30-pips-a-day is employed with choppy currency pairs like GBP/JPY. This is due to the fact that this strategy needs a lot of room for trading maneuvers in order to generate the necessary profit margin. Furthermore, markets often reverse at clearer points when currencies are volatile. This method uses a 5-minute time frame.

Applied indicators

  • 10-period Exponential Moving Average
  • 26-period Exponential Moving Average

How the strategy works

The trend is identified using the EMAs’ crossings. An uptrend is indicated if the 10-EMA crosses the 26-EMA bottom-up and keeps climbing. Price pressure is downward if the 10-EMA crosses the 26-EMA upside-down and keeps falling. Here is a step-by-step explanation of how to initiate and end a trade:

  1. The 10-EMA crosses the 26-EMA as you wait. That will serve as a cue for you to get ready to fill a position. Additionally, as will be seen in the situations below, the direction of trade opening depends on how the 10-EMA crosses the 26-EMA.
  2. To verify your market analysis, you wait for the price to move in the direction suggested by the EMAs.
  3. You watch for a regional reversal of the apparent trend. At the high/low of this retracement, you will open a position. When the price exits the correction and resumes following the observed trend, your goal is to capture the range it will move in.

Trade Example

Short position

The GBPJPY M5 chart shows a downward trend. Furthermore, the 10-EMA has crossed the 26-EMA upside-down and is still moving downward. As a result, we choose to sell during the downward trend.

The GBPJPY M5 chart shows a downward trend. Furthermore, the 10-EMA has crossed the 26-EMA upside-down and is still moving downward. As a result, we choose to sell during the downward trend.

15–20 pip-plus above the sell order level is where the stop loss should be placed. 30–40 pip take profit is the target.

Long position

The rising market follows the same reasoning. We see an upswing on the GBPJPY M5 chart. We can also see that the 10-EMA has continued to rise after crossing the 26-EMA bottom-up. Consequently, we choose to buy as the trend is rising.

We do not, however, buy right away. Instead, we watch for a correction in which the price falls to at least the midpoint between the two EMAs. We are now placing a buy order.

It should be noted that in this case, the price declined even farther than the EMAs’ halfway point, which is also appropriate. Confirming that the retrace is significant enough to provide the maximum gain up to the take-profit is initiated is the goal here.

Place the stop loss 15-20 pip below the buy order level. Take profit is between 30 and 40 pip away.

The Take Profit and Stop Loss levels are, as you can see, quite a distance from the position opening level. To achieve these levels and make the method effective, the currency’s volatility is therefore necessary. On the other hand, for the same reason, this strategy can be viewed as somewhat dangerous. The ratio between the stop loss (15–20 pip) and take profit (30–40 pip) is one to two. The traders must compare this to the equity that is available and the risk-management strategy being used.

As a conclusion, we can state that trading 30 pip increments every day is an engaging and aggressive approach that will yield good profits on each deal. It is simple to use but takes nerves of steel. It might be a useful tool in a trader’s toolbox when cross-checked with conventional trend analysis.

20 Pips a Day Forex Scalping Strategy

The given currency pair must move aggressively throughout the day and be as volatile as feasible in order to follow this method. The best pairs are thought to be GBP/USD and USD/CAD. Given the erratic fluctuations of the American session, trading should start no earlier than 12.30 GMT, assuming there are no scheduled economic data or news releases that day. It is vital to enter the market following the news announcement if there are. It is advised that a trader select a 30-minute window, set the default Momentum 5 indicator in the trading platform, and set the 20 SMA moving average.

The market entry point for additional purchases is indicated by a closed candle above the 20 SMA and the Momentum indicator above the average level. It is important to enter a short trade on the pair when the price falls below the moving average and the momentum indicator is below the average level. The position should be closed when a trade is underway and the price is about to cross the 20 SMA line. Orders for stop loss and take profit are set at the level of 20 pip. It is possible to utilize the trailing stop because the interval is so brief (from 1 pip). Placing the order at zero when the price is 10 pip away is an additional choice.

10 Pips a Day Forex Scalping Strategy

Pair : All Forex Pair
Strategy Time Frame : 5 to 15 Min Charts
Indicators : Bollinger Bands (20, 0, 2) and Stochastic Oscillator (5, 3, 3)

To start, put up your charts in a manner similar to the one shown above. Now, the goal should not be to make 10 pip in a single transaction or shot. So be it if the trade gains 10 pip increments and soars. Take what you can get if not. This scalping approach has a poor risk to reward ratio but a greater accuracy rate. Therefore, please trade at your own risk.

Steps to look for to scalp your 10 pips

– Look solely at the significant pairs. (USDJPY, GBPUSD, EURUSD, USDCHF)
– There must be a close outside of the Bollinger Band indicator.
– It must be either oversold (below 20) or overbought for the stochastic oscillator indicator to be considered (above 80)
– Look for a red candle if the market is in an upswing. Look for a green candle if the market is in a decline.
– We’ll call them “Signal Candles” from now on.
– When you see your signal candle, enter the market in that direction and scalp your pips.
– Stops should be held at 20 pips.

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