Most successful traders develop a strategy of their own and stick to it. Forex Traders who can’t develop a strategy may opt to stick to one developed by some professionals. So if you have any rock-solid strategy, then you could just combine it with 100 pips a day strategy and make your strategy more accurate, and if you don’t have any, then this strategy could be a life-changing opportunity for you. Just hold on and keep reading this piece of content.
Basic Trading rules
For trading this strategy, we need to understand the trend line very effectively as there is always a false break, so we must have to sort out a false break from the right one.
How to buy
Buy when the trendline breaks from the lower to the upper side with a strong bullish candle. If you find and false break before the real break, then your setup will be more valid.
When to sell
Just take a look at the picture I attached.
See how prices touch our trendline for the first time. Then again, touch the trendline for the second time, and the price continues to rise. Then in the third period of time, we find a bearish candle breaks the trendline but slightly. The next candle, we find a bullish candle, and the price continues to rise again. That means this is a false break. So we need to pay close attention here. . finally, at the top, we find a strong bearish candle breaking the trendline. We find the next candle also bearish candle, which confirms the breakout. We can sell here easily.
Time frames: You can use any time frame starting from 1 hour to daily but for getting consistent profit I will suggest you choose 240 minutes chart. This simple trendline-based system turns into a powerful forex trading system if you choose a longer timeframe.
Stop out: just place your stop-out level above the recent high.
Take profit/profit target: place 100 pips profit target. Every time.
Most Traded major pairs
The negative side of this 100 pips per day forex strategy
If you are naïve at finding the trend in the market, then making money with this strategy will be very difficult for you. If you trade in a choppy market and draw trend lines incorrectly, then you will end your account blowing with too many trades. So only trade with strong momentum in a strong trendy market. However, there are too many pairs in the market but stitch to only a handful number of pairs I stated above.
Positive aspects of how to make 100 pips a day strategy
I just gave one example. In a single pair in a single day, you cut more than 140 pips. So just imagine I listed 12 trendy pairs above. If you observe these 12 pairs on a regular basis and find the correct trend in the market, then how many pips can you get in a single day? This is the beauty of this “100 pips a day forex strategy.”
A trading strategy basically consists of three core parts.
Planning for the trades
Execute the trades
In all these 3 parts, you should adapt yourself to the market conditions. Many times, many novices follow technical tools and indicators blindly and have no idea trading experience what’s happening in the financial markets. You need to apply technical tools as well as you should also follow and consider the core fundamentals of the market. If you understand the fundamental events of the forex markets and trade solely depend on 100 pips a day strategy, then making money in forex would be fun for you.