February 1, 2023

Strategy “5 pips a day in forex” in detail

5 min read
Strategy “5 pips a day in forex” in detail

A concept has been developed on the currency market a long time ago that consists of five important points a day at Forex. Traders are interested in this strategy, because it is likely to take a profit of 5 points.

According to statistics, a large number of newbies in trading want to catch trends of 200-500 points. But they do not succeed, because the goals set are really unattainable, but in the end – sheer disappointment and depression.

According to practice, it has long been verified that it is much easier to take the notorious five paragraphs a day, but 100 or more is much more difficult. At the same time, it is necessary to select a system for opening orders, which will be able to issue the necessary 5 points in Forex. It is much easier and faster than starting to develop a medium-term strategy.

For people who are unstable emotional mentality, this strategy is a real cure, because sometimes they can not stop, their greed literally eats. Everyone knows that over-selling is a known side effect that can occur in scalping. So it turns out that 5 drops of a “miraculous” elixir is just like 5 points for a scalper, which is simply exhausted from exhausting trade. It is quite possible to carry out from 5 to 10 transactions in a day, this is normal, but they have both positive and negative results. The beginning of the formation of the business will be five paragraphs per day. Such expected stability appears – one can talk about some kind of moral satisfaction, and this is already a significant advance towards the intended goal.

5 points per day without risk. Forex Trading Strategy

Suppose a newbie has a small deposit, it is only 10 thousand y. e. With a lot equal to 1, a shoulder of 1: 100 and a slot – Standart, the resulting profit from one successful transaction for a given 5 pp will reach: 1 lot * 10 cu * 5 points = 50 cu It turns out that within one working day the deposit does not exceed 1%, but in 20 days to your own deposit you can earn about 20% of the profits. It turns out that only one deal is fixed with the help of five points. The official bank in which your funds are kept, in turn, gives 1% for keeping it, as a result it turns out that your work is twenty times much better than a bank. Five points Forex – a widely discussed topic in Skype chat rooms and on the forums of traders.

How the system works and what you need to do

It is necessary to analyze the intersection of price extremes, this allows the strategy itself to be made possible. A lot of experienced speculators are trying to place orders and feet beyond the level of the extremes of the day. There is a breakdown of prices, and then large volumes are triggered and simply 10-30 pp are captured by inertia (the effect is exerted by the average volatility of the instrument).

Initial parameters that help implement the strategy of 5 points per day without risk in forex: The parameters allow you to select the indicator indicators you need for a trader – a graphic pattern of the continuation of the trend movement, reversal patterns; You can customize the sound of a new figure; Assign a number of candles for analysis; On the price chart, you can choose options for receiving signals.

  • Instrument: euro / dollar, or similar pair characterized by medium volatility (GBP / JPY, USD / CAD, AUD / USD, USD / JPY, CHF / JPY, NZD / USD,).
  • The timeframe that is suitable for opening trades is M15; for doing business – from H1 and more.
  • The best bidding period is “Europe” and the beginning of “America”.
  • Type of system – on breakdown, without indicator, scalping.
  • The ratio takeprofit / stoploss is 10-20 PP.

A simple Forex strategy of 5 points per day is a fairly well-known system, it is supposed to work on the euro / dollar pair, first there is movement at night, and “Europe” opens in the morning, and a rather sharp jump in price appears. Due to the fact that this pair is distinguished by high liquidity, many brokers have the opportunity to set the lowest spread.

The start of work falls on the H1 period, with the highest and lowest daily levels being indicated. This is necessary for smooth switching by timeframes – it is estimated how relevant they are in this period. “Europe” starts by switching to M15, while it is necessary to place 2 set orders at intervals of 2-5 pp from the lines that are above the maximum — to buy (BuyStop), below the minimum — we sell (SellStop). Protective order and profit – in ten paragraphs.

Signals for Buy and Sell

Sometimes pending orders do not work for today, which means that they must be removed or adjusted for tomorrow, while taking into account the trading range of today. According to such a system, one can enter the market maximum once a day, no more. In the event that one of the orders triggers, the other order must be removed.

Options for the development of events to complete the breakdown of these levels.

  • Breakdown is considered the most appropriate and frequent, in which significant volumes were triggered, and thanks to this, our order was able to capture an estimated 5 profit points.
  • The price has not reached TP, but it has interrupted the extremum, the movement continues there and the stop is triggered, sometimes you have to risk opening up and still pick up your 5 points. But with confidence in the second breakdown.
  • If stoploss worked on a pullback, the key level is crossed and the price moves to the 2nd order, you can wait for its execution and take your hard-earned money.
  • The most unfavorable option is when stoploss triggers on two orders. This situation is observed when the news is released immediately after the order is opened (or before). Because of the news there are jumps on both sides. However, breaking through important levels is not observed, and the price goes further in the range. Alas, today is not a good day for our strategy, it is better to delve into the calendar of economic news and choose a better day.

In fact, the system of 5 points is an ordinary scalping, which imposes significant requirements on the fast execution of commands in the terminal and the quality of communication.

Key strategy recommendations:

  1. We start trading at least at 12:30 GMT. There should be no important news. But if there are any, we are waiting for the news.
  2. We take the usual indicator Momentum 5 and the average SMA line with a period of 20.
  3. A signal to Buy is the closing of the candle, Momentum must be above the moving average.
  4. To open on Sell, wait for the candle to close under SMA with a period of 20, Momentum – under SMA.
  5. To close the deal, wait until the SMA is crossed in the opposite direction.
  6. Sl and Tp set in 20 points. If possible, switch on a trading stop of 1 pp or you can move your hands to breakeven after 10 pp.
  7. You can open a deal once a day.