50 Pips A Day Forex Trading Strategy

(and 100)

50 Pips

50 Pips A Day Forex Trading Strategy

Aiming for 50 pips a day is a very realistic target because the Average Daily Range (ADR) of the major pairs is at least 50 pips a day. In other words, the major pairs travel at least 50 pips a day, which means aiming for 50 pips is a very logical and strategic target.

Another excellent reason to aim for 50 pips a day is because it offers a very good Reward to Risk Ratio with a safe Stop Loss. You always want to look for setups that offer you a Reward to Risk Ratio greater than 1 to 1. Ideally you want to look for setups around a Reward to Risk Ratio of 2 to 1. So if 50 pips is your Target Reward, then 25 pips would be an ideal amount for your Risk. Having your Risk at 25 pips is usually considered a safe Stop Loss for most of the major pairs. Contrarily, if you’re only aiming for 20 pips a day as your Target Reward, then chances are that your Stop Loss is either extremely risky, or your Reward to Risk Ratio is not good. If you’re going to enter into a forex trade, incurring any amount of risk, then you always want to make sure to set a safe Stop Loss (at least 20 pips or above), while satisfying a Reward to Risk Ratio greater than 1 to 1, and ideally around 2 to 1. That’s why it’s smarter to aim for closer to 50 pips a day, as opposed to only 20 pips a day, because you’ll have a safer Stop Loss with a better Reward to Risk Ratio.

100 Pips A Day Forex Trading Strategy

There are two ways you can achieve 100 pips a day. The first method is to execute two trades per day, each at 50 pips Take Profit (two trades multiplied by 50 pips each). This is very realistic to achieve. However, if you prefer to enter into only one trade per day, then another method to achieve 100 pips a day is by focusing on GBP pairs (also known as Pound pairs). Any pairs with GBP in either the base or quote currency, usually travel at least 100 pips a day. In other words, the Average Daily Range (ADR) for Pound pairs is at least 100 pips. Therefore, if you want to take only one trade per day with a target of 100 pips, then it’s highly recommended to focus on GBP pairs. However, it’s very important to note that GBP pairs are very aggressive pairs. This signifies that you need to be careful when trading them. They move a very large amount of pips per day and they move fast, which creates a very high reward and high risk environment. I personally prefer the first option, because I always aim for up to 50 pips per trade. I couldn’t care less about hitting home runs. Up to 50 pips per trade works for me.

Regardless if you’re aiming for 50 pips a day or 100 pips a day, it’s very important to make sure you’re taking trades only at major Price Levels, otherwise no strategy will work. If you’re interested to learn more about this, I offer a course specifically about Price Levels. It’s the ultimate secret to forex.

Forex Price Levels

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