Breaking of support or resistance when volume is coming into the market can lead to strong moves in the triggered direction.Ĭan’t we pick a trade direction and trade one side? Often times, the highs and lows also represent both support and resistance although it is on a very limited basis. Why are we using the high and low of the candlestick? Following the trading rules of the 50 pips a day trading system, there would have been a total of 6 trades (excluding the day that is now currently running) resulting in 4 trades becoming winners and 2 losers.Ĭommon Questions About the 50 Pips A Day Trading Strategy.Analyse the “what if” situation of the most recent 6 days that have passed on the EURUSD chart.If you trade has a floating profit or a floating loss, wait until the end of the day and exit your trade, regardless of if you have a profit or loss.ĥ0 Pips A Day Forex Trading Strategy – Daily Trading Strategy.If your trade reaches it profit target for the day then awesome! Repeat the same process tomorrow.Once you have entered the trade, let the market do its thing.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. GMT candlestick after it closes(or has formed) to control your trading risk. You must place a stop-loss order anywhere from 5-10 pips pips above the high/low of the 7 a.m.When price activates one of the pending orders, you cancel the other pending order that has not been activated.GMT candlestick closes, you 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. TRADING RULES OF THE 50 PIPS A DAY SYSTEM Can I use any currency pair? You may want to stick with the major pairs (VS USD) to begin with and especially the EURUSD and GBPUSD.What time frame will you be using? For our purpose, we will use the one hour chart but you can certainly test this on other time frames.This day trading strategy does not require the use of any trading indicator and is a pure price action trading method. You can also use Google to calculate what that time is in your time zone. Make sure that the time you see on your MT4 chart matches that of 7 a.m. GMT candlestick on the 1 hour Forex chart. To keep this standard, this method will be using 7 a.m. Our main goal for our trading day is to capture 1/3 – 1/2 of the daily trading range of the currency pair of choice. We are going to use the major Forex currency pairs and the first thing you will want to do is open up the daily chart to look for the pair that has a decent daily range. It is very similar to the London breakout system that is also on this website. The trade setup is quite clear but like any trading strategy, risk management is vital for your overall success. I think this is a great day trading strategy for beginners because you do not need to learn complicated indicators or price patterns. It is a pretty simple day trading strategy but remember that many times, the best day trading strategies that work are actually simple in design which can make them quite robust. The 50 Pips A Day Forex Trading Strategyis designed to capture the early market move of GBPUSD or EURUSD but you can certainly experiment with other major currency pairs.
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