50 pips a day forex strategy
Make 50 pips a day forex strategy, is it possible? In the forex, the trading industry is very possible to achieve. For several traders that really dedicate their time to trading daily.
A trader can use scalping techniques by spending about 8 hours a day for short-term trading. Indeed, not every day will be achieved and sometimes get a loss. But if a trader has been able to trade with discipline, placing a tight stop loss.
If in day trading he makes 80 orders, with a 15-20 pips risk, the risk will be kept as low as possible, and the opportunity to profit will be greater.
To get 50 pips per day, this does require discipline in all respects. traders must be able to choose the market session that best provides opportunities for profitability. Pay attention to factors spread costs, time discipline, risk management, and money management.
And to be able to work on a schedule, a trader must be able to act professionally. Even though he works without the pressure of others because the trader is to be his own boss.
But the attitude of discipline is something that must be emphasized to be coercion from ownself.
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What strategy can produce 50 pips per day?
In forex, there is no strategy that works 100% in all circumstances, and there will always be gaps in errors that can cause the failure of achieving daily targets.
How to achieving this target will depend on accuracy in determining entry points, and also market volatility.
When the market in high volatility prices can go up and down quickly. So even scalping strategy will enable you to reach the target of 50 pips per day. If you make an order 5 times with a target of 10 pips, then if it’s without loss and all orders are successful with profit. That is enough to reach the target of 50 pips per day.
Even with the intraday trading strategy, it is possible to reach the target of 50 pips per day, if market volatility is high and price changes are wide, say up to 200 pips.
The emotional condition of a trader can determine the outcome of a trade, when a trader gets a loss, especially in a sequence, if the trader cannot control his emotions, it will certainly be chaotic in the next trading strategy.
Things that must be considered to reach the target of 50 pips per day
Forex trading is not a fixed calculation as in mathematics, daily market changes are always dynamic. However, once a trader can take daily moving averages to adjust profit targets if he is an intraday trader.
Then what things do forex traders need to know about?
- Market session busiest hour.
- Price volatility.
- Global economic conditions.
Market session busiest hour
Choosing rush hour on forex trading greatly affects the trading results, the forex market session is divided into four sessions, but the busiest market sessions are London and New York.
By selecting the busiest hours it is possible to obtain 50 pips per day. Traders can create a work schedule at that time by posting a schedule on the wall of your workspace.
Ideally trading during rush hour will make it easy to capture profits, but traders must also see how price volatility is occurring. If price volatility is low, and within a narrow range of movements, it will be difficult and even less profitable because low volatility prices will be difficult to obtain profits.
So pay attention to volatility is very important and does not force entry if the market is low volatility.
Global economic condition
Global conditions can also affect the market, as in March 2020, price volatility is very high as a result of the Covid-19 pandemic. Smart traders can take advantage of the high volatility and get a profit of more than hundreds of percent in just a week.
Keep in mind if news global economic could influence the forex market.
50 pips per day with scalping
All traders know what scalping is, yes this is short-term trading, with an average target of only 10-15 pips, a maximum of 20 pips.
Then is it possible by scalping a target of only 10 -20 pips will reach the target of 50 pips per day? Obviously maybe even more than 50 pips.
But there is a certain requirement that must be met. You must really understand short-term movements, you can choose several pairs with low spreads. For example, EURUSD and GBPUSD. On average this pair has a price movement of more than 100 pips daily.
Utilize the M5 or M15 timeframe to capture short-term movements. In the span of an hour, sometimes the up and down movements of prices can occur several times. Scalping traders can capture that opportunity with these opportunities.
If you can make transactions without loss, five times the order has reached 50 pips profit and you can rest for tomorrow again.
But if you fail several times, it means you often mistake the entry point and have to fix it.
What do I need for 50 pips scalping?
There are many scalping methods that you can learn, either with indicators or with price action, and the easiest way is to understand the concept of candlestick patterns.
This is needed to identify reversal patterns, or trend continuation patterns, if you are not familiar with candle patterns, you can look for them on the forex blog or also here.
With 50 pips scalping, we can make trading rules simply and apply them with discipline, here is the explanation.
- If the bullish candle pattern has begun to weaken and a reversal pattern appears, open Sell.
- After three candles have passed with whatever the result is the parameter for the exit point. Remember that prices always go up and down. Breaking this rule allows reversals that cause more frequent losses. Remember to set rational targets.
- Conversely, if the bearish pattern has weakened and a reversal pattern appears, open buy.
- Exit after the next three candles appears with whatever results, train your skills with discipline.
Even though scalping is a short-term trade, a scalper can be a winner in a trading contest, this is something extraordinary. If it is developed with sincerity and patience, or if possible make trading automatic. Scalping is a surefire way to get profit from forex.
Advantage scalping strategy for 50 pips target
- Suitable for traders who like high trading aggressiveness, in a day can make more than ten times the order even more.
- It allows relatively faster profit earnings, with a target of 10-15 pips allowing targets to be executed immediately.
- Traders that register under the umbrella of IB allows them to get more rebates.
Disadvantages of scalping strategy for 50 pips target
- Scalping trading can cause emotional tension to be higher, maybe not all traders match this strategy.
- Need more concentration, can’t set and forget orders.
50 pips day trading strategy
Besides the scalping strategy, there are also other strategies that also allow traders to get 50 pips per day. This is a day trading strategy, where day trading is a way of trading which is carried out on a daily basis. The trader will open and close a position not to pass a trading day.
This day trading strategy of 50 pips targets utilizes the EURUSD and GBPUSD pairs, but can also experiment with other major pairs such as AUDUSD, CADUSD.
This strategy is trying to take 1/3 or 1/2 of the daily range of price movements. Risk management is very emphasis on this strategy. This is something vital that brings traders to success.
Day trading set up 50 pips target
The important thing to note is to make sure that you use the standard time of 07.00 am GMT, maybe you need to adjust your platform, for further information ask your broker. You can also do a simple google search to find out 7 am GMT in your country’s time zone.
- What indicators are used? This strategy purely utilizes price action so it does not use any indicators.
- What timeframe is used? This strategy uses H1 timeframes or hourly.
- Which pairs are traded? GBPUSD or EURUSD is recommended, but you can try other pairs. But there should be a USD as a counter currency and has average movement 100 pips daily.
Trading rules day trading 50 pips target
- Focus on 07.00 am, when the candle closes at the H1 timeframe, soon you place a pending buy stop order 2 pips above the high and sell stop 2 pips below the low at the H1 candle.
- Wait for one pending order buy stop and sell stop to activate, if one of the two is active, cancel another pending order. For example, a buy stop order opened because prices are rising up then remove the sell stop order.
- Place a stop loss of 5-10 pips above the high H1 candle 07.00 am for Sell orders and 5-10 pips below the low H1 candle 07.00 am for Buy orders.
- Set a target of 50 pips from the open position.
- Let the market determine the outcome. If your order has been reached, this is great, try again tomorrow and don’t force to open the order again.
- If your order in floating profit or loss. if possible modify stop loss at the break-even point and wait until the last day to close your order with profit or loss outcome.
Example backtest result for day trading 50 target strategy
From the EURUSD chart above it represents six trading days, where each day is limited by the daily period line, with the results of 4 winning orders and 2 losing orders.
So the conclusion is that this strategy is not perfect, but it is still possible to provide profits. The important thing is to do it with discipline, then you can evaluate the whole trade for a certain period of time.
Advantage day trading strategy 50 pips target
- Simple strategy, set and forget strategy, after one pending order is opened, delete another pending order.
- Prevent over trading, because this day trading strategy only makes one order each day.
- Not bother with reading indicators or news because you have used stop loss as vital risk management.
Disadvantage day trading strategy 50 pips target
- This day trading strategy is not suitable for traders who are looking for more trading positions.
- This strategy only uses fixed 50 targets, while there may be movements of more than 200 pips a day.
- If you lack concentration, maybe both pending orders can be opened when you are negligent because you do not pay attention to the position of your order.
Is day trading strategy 50 pips target profitable?
Taking the example of the backtest in the picture above, we can conclude that, this strategy is still quite effective as a profitable strategy.
But in that example only choose one pair, whereas that in a week means it will only make an order 5 times. But if you choose two pairs then within a week will open the order 10 times.
If in all transactions the average winning trades are 3 times, out of 5 orders, a week still gets more than 100 pips if you set a stop loss of 10-15 pips.
Indeed, the achievements of each trader are sometimes varying, this is due to the influence of the broker. For example the quality of trading server latency, also whether the broker is a market maker or no dealing desk.
Why use pending order buy stop and sell stop?
This uses the concept of support and resistance at high and low candles. With a clue, if the price of the breakout will become a new trend, pending orders are a trap to be able to catch the breakout.
Can we pick one direction of the side pending order?
Of course it can be in accordance with the rules of working with trends, by placing one pending order in one direction of the trend, allowing for a breakout and profit. However we don’t know for sure, with two pending orders we can catch if there is a trend reversal.
Can we use a limit order for 50 pips day trading strategy?
This strategy is a breakout by utilizing support and resistance, although it may occur after a break then pullback, limit orders can be another alternative if needed.
Is there any ebook for the 5o pips day trading strategy?
One of the authors of the 50 pips day forex strategy ebook is Laurentiu Damir, an experienced trader of more than 14 years, with several user reviews that provide positive feedback on the contents of the book.
Get it on Amazon
One thing that becomes the bottom line in 50 pips a day forex strategy is the use of risk management, it is important to choose the total risk according to the trader’s convenience.
Which strategy is best whether scalping or day trading methods will depend on the psychological condition of each trader, some may be suitable for scalping and they enjoy it. But some others might prefer 50 pips day trading strategy because it is more comfortable and relaxed.
Whatever the choice is the trader adjusts to the ability to hold emotions, scalping requires extra patience, but day trading can leave the chart with a set and forget.
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