There are a number of forex trading strategies on our site and '20 pips per day' is a free and simple forex scalping strategy. As you can probably work out from the name, you can make 20 pips per day with this strategy.To use this forex scalping strategy you should look for a forex broker that is reliable and provides the MT4 4 trading platform.
Description of Forex Scalping Strategy '20 Pips per Day'
1. When using this forex strategy only open transactions after 1100 GMT
2. It is very important to look through the news calendar beforehand to check if there is some important news for today
3. If you find out that some important news is due to be released today, you should wait until it has been communicated before opening the transaction It should be noted that this rule also applies to any other trading strategy, because many Forex strategies react after the release of important economic data
4. However if there is no news then you can trade from 1230 GMT
5. First of all, put a simple moving average with period 20 (SMA) and a momentum indicator with period 5 on a chart of a chosen currency pair
6. You should use a M30 (30 minute) timeframe for this forex scalping trading strategy. I would also advise using the GBP/USD currency pair when trading with the '20 Pips per Day' strategy but you can use any other instruments, which will be presented in the terminal of your Forex broker. When using high volatility trading instruments, '20 pips per day' just like a lot of other forex trading strategies can bring high profits.
7. When the candle closes above the SMA (20) and the momentum indicator goes above the average level a buy trade can be opened. The conditions are exactly the opposite for a sell trade.
8. Place a take-profit of 20 points when profit-taking. You always have the option to make a partial close of a trade when the set profit of the trade is reached and then use a trailing stop for the second section. This is a way to make more than 20 pips per day.
9. The majority of Forex trading strategies use stop-loss, and '20 Pips per Day' is no exception. Stop-loss can be placed in a number of ways. You can place it at a distance of 20 points, or a bit lower (higher) of a moving average, or beyond the last local maximum (minimum).
10. Please note that the position should be closed immediately if the price crosses the SMA (20) in the opposite direction once a transaction has opened. And it's important to remember that, just like a lot of other forex trading strategies, you can make a profit if you closely follow all of the instructions and rules.