30-pips-a-day is a trading strategy used with the volatile currency pairs like GBP/JPY. That is because this approach requires a wide space for trading maneuvers to obtain the required profit margin. Also, volatile currencies often provide clearer market reversal points. The timeframe used in this approach is 5 min.
Indicators used
10-period Exponential Moving Average
26-period Exponential Moving Average
Below you will see how you can find the Moving Average indicator in the MetaTrader menu and where to set the Exponential method for it.
Main idea
The EMAs crossings are used to define the trend.
If the 10-EMA crosses the 26-EMA bottom-up and continues rising, it is a sign of an uptrend.
If the 10-EMA crosses the 26-EMA upside-down and continues falling, there is pressure down on the price.
Opening and closing trades
Step 1
You wait for the 10-EMA to cross the 26-EMA. That will give you an indication to prepare for opening a position. Moreover, the way the 10-EMA crosses the 26-EMA defines the direction of trade opening, as will be explained in the scenarios below.
Step 2
You wait for the price to follow the direction indicated by the EMAs to confirm your market interpretation.
Step 3
You wait for a local correction against the observed trend. You will open a position at the high/low of this retrace. Your intention here will be to catch the range that the price will go through after getting out of the correction and following the observed trend again.
On the M5 chart of GBPJPY, we observe a downtrend. In addition, we see that the 10-EMA has crossed the 26-EMA upside-down and continued going down. Therefore, we decide to sell on the falling trend.
However, we do not sell immediately. Instead, we wait until the price moves up in a correction to reach at least the middle point between the two EMAs. Now we place a sell order.
The stop loss should be placed 15-20 pips above the sell order level. The take profit is 30-40 pips.
Long position
The same logic is applied to the rising market.
On the M5 chart of GBPJPY, we observe an uptrend. Also, we see that the 10-EMA has crossed the 26-EMA bottom-up and continued rising. Therefore, we decide to buy on the rising trend.
However, we do not buy immediately. Instead, we wait until the price moves down in a correction to reach at least the middle point between the two EMAs. Now we place a buy order.
Note: in this scenario, the price not only moved down to the middle point between the EMAs but dropped even lower – that is also acceptable. The idea here is to confirm that the retrace is significant enough to give maximum gain until the take-profit is activated.
The stop loss should be placed 15-20 pips below the buy order level. The take profit is 30-40 pips away.
Pay attention
As you can see, the Take Profit and Stop Loss levels are fairly far away from the position opening level. That is why the volatility of the currency is required to reach these levels and make the strategy work. On the other hand, this approach may be considered relatively risky for the same reason. The Stop Loss (15-20 pips) to Take Profit (30-40 pips) ratio is 1 to 2. The traders need to weigh this against the available equity and risk-management in use.
Making a conclusion, we can say that 30-pips-a-day is an interesting and aggressive strategy to make good profit with each trade. It is easily used but requires a good nerve. Cross-checked with standard trend analysis, it may be a good tool in a trader’s arsenal.
FBS Analyst Team
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Instead, we wait until the price moves up in a correction to reach at least the middle point between the two EMAs. Now we place a sell order. The stop loss should be placed 15-20 pips above the sell order level. The take profit is 30-40 pips.
What kind of trader are you, if you trading intraday, 50 pips should be your target. But I'm a scalper, I quit trading in the day when I already tired and making profit hundreds pips.
In this instance, one pip is a movement of 0.0001, so the trader has made a profit of 30 pips (1.0600 – 1.0570 = 0.0030 which is the equivalent of 30 pip). The pip value in USD is (0.0001 x 10,000) / 1.0600 = $0.94. In this example, the trader made a profit of 30 x USD $0.94 = $28.20.
Focus on the pending order and place a stop-loss. If it is a buy order, the stop-loss should be placed 5 to 10 pips below the 7 am candle's low. If it is a sell order, 5 to 10 pips above the 7 am candle's high. In both cases, your take-profit would be 50 pips above (buy order) or below (sell order) the order.
We open a position size of 10,000 units and calculate the pip value as follows: 10,000 (units) x 0.0001 (one pip) = $1 per pip. When you open a position of BUY and the market acts in your favor every pip movement will earn you $1.00 and the visa versa is true if you SELL.
A standard lot refers to 100,000 units of base currency and equates to $10 per pip movement. A mini lot is 10,000 units of base currency and equates to $1 per pip movement. A micro lot is 1,000 units of base currency and equates to $0.10 per pip movement.
Put Take Profit to 20 pips, but it will be justified to use a trailing stop with a step of 1 pip, or use the standard terminal trawler to reach 10-15 pips; take 30-50 percent of the trade when profits reach 20-30 pips, and leave the rest for trailing. In the case of luck, the profit will be much more than 20 pips!
Forex scalping strategy “20 pips per day” enables a trader to gain 20 pips daily, i.e. at least 400 pips a week. According to this strategy the given currency pair must move actively during the day and also be as volatile as possible. The GBP/USD and USD/CAD pairs are deemed to be the most suitable.
If you want to focus on making 100 pips a day in forex, you will need to adjust your risk-reward ratio and use stop-loss orders to manage your losses. Always ensure you are trading with capital you can afford to lose and always risk a limited percentage of your capital on each trade.
A 0.01 lot size is commonly referred to as a micro lot, which means it represents 1,000 units of the base currency in a trade. To put it into perspective: For major currency pairs like EUR/USD, 0.01 lot size would be 1,000 euros. For USD/JPY, 0.01 lot size would be 1,000 US dollars.
In forex trading, the 10 pips per day scalping strategy is a top pick for quick gains. It uses small market moves for steady profits. This approach is perfect for quick traders, as it involves swift buys and sells. This strategy aims to win with small, exact market moves.
However, most experts agree that between 1 to 10 pips per day is a reasonable goal for most traders. As for trading 0.05 lots per every 100 dollars capital, this is generally considered to be a safe amount. This is because it allows for proper risk management while still providing a good opportunity for profit.
The GBP/USD pair typically experiences an average daily pip movement of approximately 80-120 pips and a monthly pip movement of approximately 700-1000 pips.
Notable currency pairs that move the most pips daily include AUD/JPY, AUD/USD, CAD/JPY, NZD/JPY, GBP/AUD, USD/MXN, USD/TRY, and USD/ZAR. Among highly liquid pairs, EUR/USD and GBP/USD lead the pack, moving between 70 to 120 pips daily.
Traders place buy or sell pending orders 2-3 pips above or below the daily high or low. The stop loss and take profit targets are both set to 20 pips. This strategy suits traders with little time to monitor markets. However, there is a risk of stop-outs if the breakout lacks follow-through.
Making 100 pips a day in forex may be possible, but not everyone can do it. You will have to be an experienced trader who can use more advanced strategies. To achieve this goal you can combine different strategies, such as scalping and swing trading.
How much is 50 pips or 100 pips? A pip usually equals 0.0001 of a Forex pair, so 50 pips equals 0.005, 100 pips—0.01. If one pip is worth $5, 50 pips are worth $250, 100 pips—$500.
If you are trading the most common currency pairs, such as EUR/USD or GBP/USD, a 20-pip move equates to a change of 0.0020 or 0.20%. It might not sound like much, but in forex, small price changes can lead to significant profits or losses depending on your trading position size.
Introduction: My name is Greg O'Connell, I am a delightful, colorful, talented, kind, lively, modern, tender person who loves writing and wants to share my knowledge and understanding with you.
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