This 50 pips a-day forex strategy showcases the advantage of compounding profits. You also get a Free download of the 50 pips a day forex strategy PDF.
Let’s be honest here If you are mopping up 50 pips a day in trading, then you are probably on the way to some fortune and, subsequently, a promising trading career.
The question is how. How do you identify potential profit opportunities? When do you make your entry? How long do you stay? And so many other questions?
This article not only answers the questions but exposes more questions to which you may not have an answer.
Mind you, this strategy has been back-tested with real market data, so you best believe it is rock solid.
Let’s dive in!
50 Pips a Day Forex Strategy pdf
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Why Trade the 50 Pips A Day Forex Strategy
The 50 pips a day strategy explained below is very simple in design and implementation.
For example, if you are a scalper and seek to make money every day, you should consider obeying the rules of the strategy.
While this is a roadmap for every trader on the road to a successful trading career, we all know how volatile and uncontrollable the market can be.
Oftentimes, the market goes completely south.
The good thing is that this strategy makes room for potential profit situations even when your stop-loss is hit or when you don’t makeup to 50 pips per day in dollar value.
Forex is a game of probability, and you can’t make a certain number of profits every day for a particular period of time.
For this reason, I added a tweak to ensure that you are always profitable anytime you trade this strategy.
Strategy Tweaks – 50 Pips a Day Forex Strategy
Market structure: Any volatile structure. Preferably trending
Strategy: Trend trading
Recommended lot size: 0.01
Backtest: 100% Backtested with live data
Currency Pair: All Major Currency Pairs
PDF Version: Available For Download
Timeframe: Daily Chart
Expert Advisor: Available on request – Build the expert advisor
Related Expert Advisor: Forex hedging EA
50 pips a Day Forex Strategy Video ( You will get more info from the video)
There is a video uploaded on youtube.
If you are more of a visual learner and want to get a visual representation of the strategy, follow the thumbnail below.
It is clear, concise, and straight to the point.
Entry For the Trade
The fundamental rule of this 50 pips-a-day forex strategy is to wait for the break of previous candles, either high or low.
And this rule applies to both buy and sell situations.
That is the long and short of it.
It doesn’t require any in-depth tool use or indicator.
Just keen attention to detail and patience.
Wait for the break of the previous candle; high or low
For Sell: Low at the previous candle
For Buy: High at the previous candle.
This rule is pretty straightforward and simple. You don’t take an entry position unless there is a break out above the wick of the previous candle.
As we can see in the image, we respected the breakout before considering the trade. This is the one and only rule of the strategy.
It is simple as long as you are attentive and patient enough to obey the rule, you should add 50 pips or more.
How Long Should We Wait Exactly Before Placing An Entry?
Wait for the new candle to cross the wick of the old candle by ten pips.
This is not a standard; you can wait for as much as 15 pips.
By so doing, you have allowed the new candle to form well above the old candle.
We do this because we are trying to hedge against reversals and all that.
This is another example of another area where the market didn’t obey the rules of the strategy.
We want to wait for 10 to 15 pips above the wick of the previous candle to avoid making a bad trade entry in places the market might reverse.
Exit for the trade
The exit strategy is as EASY as the entry strategy.
For the exit, you should follow these two strategies.
In the first exit strategy,
Using the ratio, you put your Stop loss below or after ( depending on your position) the wick of the previous candle.
But the take profit place is 1:1, 1:2 & 1:3, depending on the size of your stop loss.
Looks like gibberish, right? it’s not
First of all, that distance isn’t 60 pips.
It is just an assumption.
But I must pick a figure to buttress how to insert your take profit.
Assuming that distance is 60 pips, using the 1:2 take profit ratio, your take profit should be 120 pips.
The same for a 1:3 take profit.
It should be at 180 pips above your market entry.
It all depends on the ratio you want to use.
The second Exit Strategy
This second exit strategy uses the principles of hedging + lot multiplier + profit in money.
This strategy centers mostly on hedging.
Surely after going through that article, you will get the fundamentals of hedging.
Relating that idea to this strategy simply means that when a trade is going against you, you simply trade in the market’s direction and increase your lot size.
For example, if you place a buy trade on a 0.01 lot size and the market starts dipping, simply place a counter trade in the new position of the market and increase your lot size x 2.
That way, you make up for your loss.
Do this continuously until you achieve your desired profit in money.
A profit in money is your desired profit goal.
It could be $20; it could be $50.
Once you hedge your trade with the x 2 multiplier, ensure you place an achievable profit in money where the market will take you out.
Conclusion- 50 Pips a Day Forex Strategy
This strategy is definitely guaranteed to help scalpers scale the tides of day trading. You should use the PDF as a reference.
Paying attention is always key to a successful trading strategy, and this 50 pips a-day forex strategy is not an exception to that.
Enjoy and practice and contact us for any questions and collaborations.