Forex scalping strategy “20 pips per day” allows a forex trader to make twenty (20) pips daily. That is a minimum of four hundred (400) pips every week. In line with this strategy, the given currency pair must move actively throughout the day with high volatility. The EUR/USD, GBP/USD and USD/CAD pairs are deemed to be the most appropriate. Trading can begin around 12.30 GMT as a result of the volatile movements of the US session, as long as there are not any economic news and releases that day.
Just in case there is, it’s necessary to enter the market once the news has already been released.
Within the trading metatrader platform, it’s recommended to trade on the 30-minute time frame, insert the Momentum indicator and set its input to 5. Apply the Simple Moving Average indicator and set it to 20.
A closed candle on top of the 20 SMA and also the Momentum indicator on top of the typical level indicate the market entry signal. Once the market price drops below the moving average and also the Momentum indicator is under the normal level, it’s necessary to position a sell trade on the currency pair. Once a trade is open and also the currency quote is getting ready to cross the 20 SMA line, the position have to be closed.
Stop loss and take profit levels should be placed around twenty-five pips from the open price respectively.
It also advisable to use a 5 pips trailing stop order for your trades in order to maximize profits from winning trades.
Use proper lot sizing and risk management.