20 PIP STRATEGY PER DAY
A scalping Forex strategy of “20 pips per day” allows a trader to reach 20 pips per day, which is at least 400 pips per week. According to this strategy, the given currency pair must move actively for 1 day and also be as volatile as possible. GBP / USD and USD / CAD pairs are rated as the best.
Trading starts at a minimum of 12.30 GMT due to volatile movements in the American session, provided there are no important news releases related to the economy today. But if there is, immediately enter the market after the news release.
A trader is advised to choose a setting with a time interval of 30 minutes on the standard Momentum 5 standard indicator in the trading terminal and 20 moving average SMA.
Smooth Moving Average
A close candle is located above the 20 SMA and the Forex Momentum indicator is set above the average level. This shows the market entry point for further purchases. Open a SELL Position immediately when the price falls below the moving average. And the Momentum Indicator is lower than the average level.
When a transaction is opened and the price is ready to cross the 20 SMA line, the position must be closed. Stop loss and Take profit are set at the level of 20 pips. Because the interval is quite small, it is possible to use trailing stops (from 1 pip).
For other options, orders can be placed to zero when the price has passed 10 pips. These forex strategists believe that the 20 pip strategy per day is only profitable if each of the recommendations above is followed.