The Simple 10 Pips A Day Forex Trading Strategy is a simple forex trading system for beginners and even advanced forex traders.
Currency Pairs: only the major pairs
Timeframes: 15minutes
The required indicators are five ema and 12 ema and RSI 14 with 50.
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THE IDEA BEHIND THE Simple 10 PIPS A DAY FOREX STRATEGY AND THE PROBLEMS COMES WITH IT
What if you can only target to make ten pips a day? If you hit ten pips for the day, that’s all. You are done; no trading for the whole day.
The next day, you come and aim for ten pips again. If you hit your ten pips profit for the all day, you don’t trade anymore.
This means that you take the first trade and that first trade gives you ten pips of profit; you will not trade anymore because the whole aim of this trading system is to make ten pips a day.
The problem with this forex system is: what happens if you don’t make ten pips during the day?
What happens if you have ten losing trades in a row? Will you keep trading until you hit ten pips profit for the day?
If that’s the case, you will need to make a profit on the following 11 trades, and the 11th trade will give you the ten pips you need for that day.
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But then, that very thing is a problem because now you are confronted with the issue of overtrading, and you don’t know if the following ten trades will all be winners.
So with this ten pips a day simple forex trading strategy, I think you need to set a limit on the amount of losing forex trades in a row you can take before you can say: “that’s it, no trading for today.”
TRADING RULES OF THE SIMPLE 10 PIPS A DAY FOREX TRADING STRATEGY
Sell Setup:
- Sell when 5 crosses 12 downsides and RSI cross below 50
- place stop loss two pips above the previous high of the previous candlestick closed before the ema crossover.
- Take profit target is ten pips.
Buy setup:
- Buy when 5ema crosses 12ema to the upside and RSI crosses above 50 levels.
- Place stop-loss two pips below the low of the previous candlestick closed before the ema cross.
- Take profit target= ten pips.
DISADVANTAGES OF THE SIMPLE 10 PIPS A DAY FOREX TRADING STRATEGY
- You can’t use the ten pips a day forex trading strategy on pairs that have huge spreads; you will get stopped out very quickly.
- This is a trend trading simple forex strategy, so if the market is flat, you will have a lot of false signals; So, I suggest you only use this strategy during the UK and NY trading sessions.
- You are only holding yourself to 10 pips profit per day when sometimes the entry trade you take, many will see later that it has moved 60 pips or 100 pips, but you only got ten pips profit.
- Feeling to over trade if you are keen on getting your ten pips a day means you can blow your whole forex trading account easily if you do that.
ADVANTAGES OF THE 10 PIPS A DAY FOREX TRADING STRATEGY
- It’s a pretty simple trading system to use for even beginner forex traders.
- works well in strong trending markets
- Ten pips profit target is easily achieved compared to something like 50 pips profit target.
“Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett.
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