The forex market is huge. Almost 7 trillion dollars is traded here every single day. So in proportion to that, your trading capital would seem tiny here. But with this tiny amount of money, you could also make a living if you use the 20 pips a day forex strategy correctly.
At any particular time frame, every trader takes a decision whether to buy or sell any particular currency pair. And for taking this decision, if any use any techniques or methods then that is called strategy. Almost every successful trader has had a winning strategy. If you still don’t have nay then this 20 pips a day forex strategy can help you a lot.
Top traded Currency pairs best suitable for this strategy
Use only 30 minutes time frame in this strategy
Use 50 ema
First, the price has to break 50 exponential moving average from the lower side to the upper side. When this happens, then we will wait eagerly for a retracement. We will not place any buy order at the instant breaking of the price. Next time when the price again comes to near 50 ema and rejects from it, then will open buy order at the close point of the bullish candle.
Place your stop loss at the low of recent low
Although these strong setups can produce you more than 60/70 pips but always fix your take profit point at 20 pips.
When to sell
First, the price has to break 50 ema from the upper side to the lower side. Then we will wait for any upcoming retracement. When the price comes again near to 50 ema, then we will open the sell order if any rejection is found from 50 ema. Open a sell order at the next strong bearish candle.
Stop loss must be above the recent high point. Take profit fixed 20 pips.
Back test result of 20 pips a day forex strategy
Traders trading on their own trading systems should test their strategies. And 20 pips a day is not different. If you don’t back-test your strategy, rather commit live trading with your hard-earned money following this strategy; no matter how professional you are, you will blow your trading capital sooner or later. So first backtest it, then write down the last 3 months’ data, and only if you are satisfied with the result, then invest real money.
Or you can open a demo account and front test this awesome strategy.
20 pips a day vs. complicated forex strategy
Many forex traders start trading with a simple strategy, but time passes by, and they start to add different fancy indicators and many automated robots in their chart make things complicated. They think that if a strategy doesn’t look complicated, that strategy is not a good one, which is a complete lie. Although 20 pips a day forex strategy looks very simple, and we don’t use any custom indicator but don’t doubt its accuracy.
A perfect strategy should have to have a clear entry point, a perfect exit system, and last but not least, stop loss. In that case, “20 pips a day” has all the 3, so if you use this system correctly, then you will find fun in forex trading.