The 50 Pip a Day Strategy


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Video Transcription:

Hello, traders. Welcome to the Pro-Trading course and the eighth module, “Professional FX and CFD Trading.” In this session, we are going to learn about the “50-Pips A Day” strategy. And what we’re going to do here is we’re going to use some of the concepts you learn in this course to develop a strategy that is going to yield 50 pips a day. We’re going to go through the chart and I’m going to show you what we are going to look for.

Now, right here we are looking at the 30-minute Euro/US dollar chart. But if you want a better entry, it is actually better to use the 50-minute chart. Now, let’s go back to the 30-minute chart because I want to show you the levels we are going to be looking. And then I’m going to show you the 50-minute chart, the actual entry of this strategy. We are going to use a MACD. This is going to be our momentum indicator. And we are going to use a 7147 MACD. When the histogram is pointing up or printing up, the momentum is bullish, and when it is printing down, the momentum is bearish.

The 50 Pip a Day Strategy

The first thing we are going to do is we are going to locate the previous daily high, and the reason that we are going to locate the previous daily high or the previous daily low for that matter is because that is going to be the entry area for this strategy. In this case, price is going up and it is rebounding on the previous daily high. So we are going to use the previous daily high as our entry zone. We can see that we have the Daily Resistance 1, also in confluence. Basically what we are going to do here is we are going to go and find confluence between the period or the Daily Resistance 1, 2 and 3, Daily Support 1, 2 and 3, or the actual daily period. And the previous daily high or low.

In this case, we have the Daily Resistance 1, that is also going to confluence with the previous daily high. So basically what we are going to do here, is we are going to look for a bounce of the previous daily high or a bounce of the previous daily low. That’s it. That is our entry. That is what we are aiming at. In this case, we are going to look at this zone right here. As I told you before, we have the Daily Resistance 1, and the previous daily high, low.

The 50 Pip a Day Strategy1

We are going to use the MACD indicator for our entries. Now, I am going to put on a stop-loss for this trade and of course, the entry for that trade. When the MACD is starts to point down, we have a reversal in play right here at the previous daily high in confluence with the Daily Resistance 1. So we are going to put our stop-loss above the confluence of zones or the confluence of level. In this case, we are going to put our stop-loss at the 13.97 level and our entry is about the 13.73 level. Our target is also going to be in confluence with the previous daily low.

Because we are trading the bounce of the previous daily high, we are going to target the previous daily low. And right here we have confluence with the Daily Support 1, which means that our target is going to be just above this zone right here. Just above the confluence zone. And the reason we want to be just above the confluence zone is because we want to get field. And in this case, from the entry to our targets, we have 59 pips. So basically, this is the setup that you are going to be looking for day-trading the 50-pip per trade or the 50-pip a day strategy, because we are going to get 50 pips per day, per instrument.

The 50 Pip a Day Strategy2

If we go to the US dollar/Japanese yen chart, you can see that we have the previous daily low right here. Now on the US dollar/Japanese yen, you can see that we have the previous daily low right here at around 18.73. And we have confluence with the Daily Support 1. Which means that this going to be the area that we are going to look for a bounce. Obviously, price starts to trade here on the date. And we don’t know if price is going to be bouncing from the previous daily low or the previous daily high. It could have been that price moved all the way to the previous daily high, which confluences with the Daily Resistance 1.

In this case, we would have had a short trade to the downside. But because price moved to the previous daily low, which is in confluence with the Daily Support 1, we are going to look for a by-trade. And when the histogram on the MACD starts to point up, we’re going to go long, right about at this level and our stops are going to be below this zone. And we are going to target the previous daily high and Daily Resistance 1 area just around this level. Which means that we have a 25 pip stop-loss and we made on this trade 50 pips exactly. And basically, this is the 50-pip a day strategy that you are going to be using.

The 50 Pip a Day Strategy3

When price starts to trade on the beginning of the session, you wait for it to move down to the previous daily low or move up to the previous daily high. You look for confluence with your pivot level and then you wait for the trigger on the MACD to go either low at the previously daily low, or short at the previous daily high.

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