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.
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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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.
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.
To achieve 20 pips a day, selecting the right currency pairs to trade is crucial. Some currency pairs are known for their higher volatility and are better suited for short-term trading. EUR/USD and GBP/USD are popular choices for day traders due to their liquidity and tight spreads.
To implement the 50 pips a day strategy, traders usually set a profit target of 50 pips and a stop loss to limit potential losses. They carefully monitor the market and open positions when they believe there is a high probability of achieving the target profit.
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.
Most currency pairs are priced out to four decimal places, and a single pip is in the fourth decimal place (i.e., 1/10,000th). For example, the smallest whole unit move the USD/CAD currency pair can make is $0.0001, or one pip.
Chasing profits: Trying to make more than 20 pips a day can lead to risky trading decisions and potential losses. Not having a solid risk management plan: Risk management is crucial in forex trading, and not having a proper plan in place can result in significant losses.
Making 100 pips a day in forex is possible, but it requires more advanced strategies. You can go after short-term price movements but also hold your position for longer periods to go after bigger profits.
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.
Scalpers like to try and scalp between five and 10 pips from each trade they make and to repeat this process over and over throughout the day. Pip is short for "percentage in point" and is the smallest exchange price movement a currency pair can take.
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.
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.
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.
According to my definition, the 50% Rule in trading states that any trade has a 50% chance of not reaching your target. That means the trade also has a 50% chance of reaching your target. The thing is, we cannot predict the market as traders.
Currency pairs like GBP/JPY, EUR/JPY, AUD/JPY, and USD/ZAR are notable for their substantial pip movements. Traders seeking opportunities in these pairs must tailor their strategies to the inherent volatility, prioritize risk management, and stay vigilant about economic developments.
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.
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