30 Pips A Day Forex Strategy

Some strategies for trading the financial markets, unlike some others, have a specific number of pips targeted for each day. The 30-pips-a-day strategy is one of such strategies. It can be employed by both newbie and advanced traders.

What is the 30 Pips A Day Forex Strategy?

30-pips-a-day is a trading method that is employed with volatile currency pairs. This is due to the fact that this technique necessitates a large amount of room for trading moves in order to achieve the required profit margin. Furthermore, volatile currencies frequently present clearer market reversal moments. This strategy employs a 10-period EMA and a 26-period EMA.

Setting up the 30 Pips A Day Forex Strategy
Setting up the 30 Pips A Day Forex Strategy

30 Pips A Day Forex Strategy

This technical system is quite easy to understand. When using the 30-pips-a-day strategy, you would have to wait for the 10-EMA to cross over the 26-EMA. This will alert you to the need to prepare for opening a position. Furthermore, the direction of trade opening is defined by how the 10-EMA crosses the 26-EMA. To confirm your market interpretation, you could wait for the price to move in the direction indicated by the EMAs. You may have to wait for a local reversal of the observed trend. You could enter a trade at the high/low of this retracement. Your goal here could be to catch the range that the price will go in after exiting the correction and returning to the observed trend.

Buy Signal

The following could be your checklist for a buy trade:

  • When the asset being traded is in an uptrend.
  • When the 10-EMA crosses the 26-EMA upwards.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when the 10-EMA crosses the 26-EMA downwards.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
30 Pips A Day Forex Strategy Buy Setup
30 Pips A Day Forex Strategy Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the asset being traded is in a downtrend.
  • When the 10-EMA crosses the 26-EMA downwards.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when the 10-EMA crosses the 26-EMA upwards.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
30 Pips A Day Forex Strategy Sell Setup
30 Pips A Day Forex Strategy Sell Setup

30 Pips A Day Forex Strategy Pros & Cons

Pros

  • The EMAs in this strategy may assist the traders in determining market momentum.
  • The strategy could also be used to identify dynamic support and resistance levels.

Cons

  • The EMAs in this strategy may sometimes have lagging issues when generating signals.
  • The strategy may not meet the trader’s expectations when used on smaller timeframes.

Conclusion

The 30 Pips A Day Forex Strategy may be worth a try but keep your expectations in check. It, like any other strategy, is not capable of generating 100% correct indications. As a result, it will occasionally send out erroneous signals. Its performance will be highly variable depending on market conditions and your money management.

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