20 Pips A Day Forex Strategy

The xx pips a mean solar day forex trading strategy is somewhat similar to these ii forex strategies:

x pips a day forex trading strategy -you aim to make 20 pips a twenty-four hour period with this trading organisation.
50 pips a day forex trading strategy-you lot are aiming to make l pips a day

In case you may be interested: Check out my free forex trading signals and trade setups based on price action. (Click that link)

The Thought Behind The 20 Pips A Twenty-four hours Trading Strategy

The main thought behind the twenty pips a twenty-four hour period forex trading strategy is actually simple:

at that place are currency pairs that travel 100-150 pips in a mean solar day. So why no try to get a small portion of that daily motion instead of trying to become 50 pips or 100 pips plus turn a profit daily which can be quite hard to get? In add-on, it is much more easy to make twenty pips profit than a 100 or 150 pips turn a profit.
in order to exercise that, you take to trade the breakout of the previous mean solar day'due south candlestick'due south low or loftier. And then when price breaks the prior day'due south candlestick'southward low, yous take a sell trade. If price breaks the loftier, and so y'all accept a purchase trade.
And you merely aim for twenty pips profit.

So that's the basic idea of the 20 pips a twenty-four hours forex trading strategy.

Currency Pairs That Can Be Traded With The 20 Pips A Twenty-four hour period Trading Strategy?

Any currency pair tin be traded. Or if yous only trade the major currencies, that still ok.

What Are The Suitable Timeframes?

For this arrangement, information technology is suggested that you use the daily timeframe.

Any Forex Indicators Required?

No, y'all don't need any forex indicators with the twenty pips a day forex trading strategy.

Forex Trading Session To Avoid

Forex trading happens 24hrs and follows the sun around the globe.

Having said that, the forex trading volume is lower or higher based on what part of the world is awake and trading it.

The London forex trading session with the New York are the best forex trading sessions to trade using this system.

But you should avoid trading during the Asian forex trading session.

Why?

No sufficient trading volume to advance price motion either up or down. That'southward why.

So what this really means is this: if the low or the high of the prior day's candlestick was broken during the Asian session then do not trade that setup.

Instance of A Purchase Trade Setup

The chart below is a daily chart of USDCAD. Here are the buy rules of how yous can trade the 20 pips a solar day forex trading strategy:

first matter you exercise is open up up your chart and identify two contrary pending orders; a buy stop pending guild 1-ii pips above the high of the daily candlestick and a sell terminate pending order 1-2 pips beneath the low.
set your stop loss at 20 pips
also prepare your take profit target at 20 pips.
if the high or low of the daily candlestick was already broken during the asian trading session, practice not trade. What you want to run into is to see the breakout of the low or high of the daily candlestick happen during the London or the New Your Forex Trading Sessions.
If one pending club is activated, yous must immediately cancel the other. In this example beneath, the loftier was cleaved and then the sell stop pending order should be cancelled.

Instance of A Sell Trade Setup

The chart below shows an example of a sell trade setup based on the twenty pips a day forex trading strategy. The trading rules are the aforementioned as given higher up only for this case, detect that the low of the daily candlestick was broken and then the awaiting sell stop order would have been activated.

Which ways the awaiting purchase stop lodge must exist cancelled when that happens.

Advantages of the 20 Pips A Day Forex Trading Strategy

really uncomplicated price activeness forex trading strategy.
you tin just trade one time currency pair daily, just aiming for 20 pips profit.

Disadvantages of the 20 Pips A Day Forex Trading Strategy

risk reward ratio of ane:1 is not good. this ways that if you lose 10 times in a row, you really need ten winning trades in a row to recover your trading loses or have a more than wins than loses to recover your loses.
20 pips cease loss placed on a daily candlestick tin can exist hit easily.

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