50 pips a day forex strategy
50 Pips A Day Forex Trading Strategy is designed to capture the early market move of GBPUSD or EURUSD, but traders can certainly experiment with other major currency pairs.
It is a pretty simple day trading strategy but traders need to remember that, the best day trading strategies that work, are actually simple in design which can make them quite robust.
We think this is a great day trading strategy for beginners because they do not need to learn complicated indicators or price patterns. The trade setup is quite clear but like any trading strategy, risk management is vital for your overall success.
Trading rules of the 50 pips a day forex strategy system
As soon as the 7 a.m. GMT candlestick closes, traders have to place two opposite pending orders: a buy stop order 2 pips above the high and and sell stop order 2 pips below the low of the 7 am GMT candlestick.
When price activates one of the pending orders, they’ll have to cancel the other pending order that has not been activated.
Forex traders must place a stop-loss order anywhere from 5-10 pips pips above the high/low of the 7 a.m. GMT candlestick after it closes(or has formed) to control their trading risk. If they notice that the 7 a.m. GMT candlestick is too short and that placing the stop loss will be too close to the entry price, then increase your stop loss distance to anywhere from 15-20 pips.
Set your profit target to 50 pips
Once traders have entered the trade, they need to let the market do its thing.
If their trade reaches it profit target for the day, it’s excellent, traders will have to repeat the same process the next day.
If their trade has a floating profit or a floating loss, they’ll have to wait until the end of the day and exit their trade, regardless of if they have a profit or loss.