Table Of Contents
- Timeframes Required For the 10 Pips A Day Forex Trading Strategy?
- Currency Pairs That Can Be Traded?
- Forex Indicators Required For The 10 Pips A Day Forex Trading Strategy?
- Sell Trade Setup For 1o Pips A Day Trading Strategy
- How Does A Buy Trade Setup Looks Like for the 10 Pips A Day Trading Strategy?
- Advantages of The 10 Pips A Day Forex Trading Strategy
- Disadvantages of the 10 Pips A Day Forex Trading Strategy
- Is it Possible To Make 10 Pips A Day With This Forex Trading System And Become Rich?
It is a trading system based on 2 exponential moving averages indicator and and Relative Strength Index indicator.
Timeframes Required For the 10 Pips A Day Forex Trading Strategy?
Preferred timeframes are:
- 5 minutes and the
- 15 minutes.
Currency Pairs That Can Be Traded?
It is suggested that you only trade currency pairs with low spread between 1-2 pips. Currency pairs like the following are you best options:
Forex Indicators Required For The 10 Pips A Day Forex Trading Strategy?
You need 3 indicators:
- 5 EMA
- 12 EMA
Sell Trade Setup For 1o Pips A Day Trading Strategy
On this 15 minute chart of AUDUSD below, you can see what a sell trade setup of 10 pips a day trading strategy would look like:
- 5 ema must cross the 12 ema and go down
- then look at the relative strength index indicator (RSI) to see if the line has crossed down past the 50 level.
- sell at market or place a pending sell stop order 2-3 pips under the low of the candlestick the coincides with the 5ema and 12ema cross over.
- place your stop loss above the high of the previous candlesticks
- take profit target as you know would be 10 pips.
How Does A Buy Trade Setup Looks Like for the 10 Pips A Day Trading Strategy?
For the buy trade setup, you do the exact opposite of a sell trade setup:
- 5 ema must cross 12 ema and go up.
- after that, look at the rsi indicator to see if the line has crossed the 50 level and gone up.
- then buy at market or place a pending buy stop order 2-3 pips above the high of the candlestick the coincides with the ema crossing.
- then place your stop loss below the low of the previous candlestick
- set a 10 pips profit target.
Advantages of The 10 Pips A Day Forex Trading Strategy
- really simple ema cross over forex trading strategy with the use of RSI indicator to measure the strength of a trend to get into trading.
- 10 pips profit target is a relatively easy profit target to hit in a strong trending market
Disadvantages of the 10 Pips A Day Forex Trading Strategy
- you can miss out on bigger profits because you are only setting a 10 pips profit target.
- you may have very short stop loss distances on some occasions and you can get stopped out easily.
- risk to reward ratio of this system is not good.
Is it Possible To Make 10 Pips A Day With This Forex Trading System And Become Rich?
The short answer is: no.
The name of the forex trading system may be misleading but it is not possible to make 10 pips a day, every day.
Because you do not control price: it will go where it wants to go depending on supply and demand.
Some forex traders have this crazy idea that if they can make 10 pips a day, then they can make a lot of money when you put the power of compounding into play in forex trading you can become a forex millionaire overnight.
The reality is that it does not work that way at all.
But why 10 pips a day?
Well, the truth is, 10 pips a day is easily achievable. It is easy to make 10 pips a day.
So what is or what are the problems then? Well, here’s a few that I can think off:
- how much are you going to risk to make only 10 pips a day? are you risking 30 or 40 pips in a trade to make 10 pips a day?
- are you really going to be TRULY satisfied with only 10 pips a day? Would you stop trading as soon as you hit 10 pips profit for the day?
- some currency pairs have huge spreads…if you set a stop loss of 10 pips and a take profit target of 10 pips for each trade, you can easily get stopped out.
- what happens every trade you placed during that day was a loser. What if you placed 10 trades and you lost 10 pips in all of them..100 pips total loss for the day. Do you still keep trading??? Do you keep trading until you wipe all you trading loses for the day and make 10 pips profit for the day? Wouldn’t you be over trading then?
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