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.
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.
Below are the examples.
Examples
Short position
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.
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.
For example, some forex pairs move 100 pips per day on average, allowing traders to profit from the movement. If a trader even makes 10 pips per day daily, it can result in significant profit, based on the number of lots traded.
In conclusion, making 20 pips a day in forex is possible, but it requires a sound trading strategy, discipline, and risk management. Traders need to choose the right currency pairs, use a suitable trading strategy, and stay disciplined to achieve this goal consistently.
Earning a consistent 50 pips a day in forex trading is an ambitious but achievable goal. While the forex market is highly dynamic and unpredictable, traders who employ effective strategies and risk management techniques can work towards this target.
Going for 10 pips is a basis on which you can start collecting small gains and confidence. But, in my opinion, going strictly for 10 pips every time is not going to get you very far. Ending up with AVERAGE gains of 10 pips per trade is great, but that implies some of your trades are going to be worth more, some less.
What is the Forex Average Daily Range in Pips is. The forex average daily range in pips is the total number of price movements (in terms of points) a currency pair typically makes throughout the day. For example, the average pip movement per currency pair can range from 30 to 100 pips per day.
In my opinion the only time specific pip amounts can be counted is if you have specific pip targets and stops. IN that case, your percentages will also be the same all the time. You are completely right. I'm familiar with professional traders who make about 10 pips a day.
The number of trades you should make in a day in forex is highly dependent on your trading style, experience, risk tolerance, market conditions, and overall strategy. Quality always trumps quantity, and it's essential to focus on well-planned, high-probability trades rather than trying to meet a specific daily quota.
The calculation of 30 pips is straightforward. If you're trading a currency pair where a pip is the last decimal place, a 30-pip movement means the exchange rate has moved by 30 units in the last decimal place. For instance, if EUR/USD moves from 1.1500 to 1.1530, it has moved 30 pips.
Forex scalpers usually aim to scalp between 5-10 pips from each position, aiming to make a more significant profit by the end of the day. Forex scalping is a form of arbitrage trading. Get tight spreads, no hidden fees and access to 10,000+ instruments.
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.
Professional traders do not trade with a specific number of pips in mind. This is because markets do not move in a predictable manner, so a trader cannot bank on a targeted number of pips per trade. The number of pips per day varies depending on the strategy adopted as well as the unique goals set by the individual.
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.
This lot size accounts for 1,000 base currency units in every forex trade, determining the amount of a particular currency. Suppose you're trading the USDJPY (U.S. Dollar-Japanese Yen) currency pair, and the base currency is the USD. In that case, a 0.01 lot is equivalent to 1,000 U.S. dollars.
What is the Forex Average Daily Range in Pips is. The forex average daily range in pips is the total number of price movements (in terms of points) a currency pair typically makes throughout the day. For example, the average pip movement per currency pair can range from 30 to 100 pips per day.
Let's say the trader places a $10,000 long trade on USD/CAD when it's trading at 1.0570. The value of USD/CAD falls to 1.0540. In this instance, one pip is a movement of 0.0001, so the trader has made a loss of 30 pips (1.0570 – 1.0540 = 0.0030 which is the equivalent of 30 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.
How do I calculate pip size for a lot? The majority of currency pairs have a standard pip value of 0.0001 and are measured to five decimal places. 1 lot is 100,000 units of a currency. If you prefer to open smaller positions, you can choose to trade either mini lots (10,000 units) or even micro lots (1000 lots).
Introduction: My name is Melvina Ondricka, I am a helpful, fancy, friendly, innocent, outstanding, courageous, thoughtful person who loves writing and wants to share my knowledge and understanding with you.
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