Sometimes the simplest forex trading strategies can allow you to make daily profits in the forex market and once such forex trading strategy is the Daily Profit Forex Trading Strategy.
It is a very simple forex trading system really suitable for beginners as well as even advanced forex traders can find it useful.
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What You Need
To trade this daily profit forex trading strategy,
- you need to have this indicator, hotpips. Here’s the download link: HotPips
- the timeframes for trading: preferably the 1 minute, 5 minute and 15 minute charts
- the trading sessions: only the London and US
- Currency pairs: only low spread currency pairs like EURSUD, GBPUSD, USDJPY, AUDUSD, USDCHF
Buying Rules
- Hotpips indicator red/blue histogram must be above the 0.00 level. This means its an uptrend (completely ignore the green histogram)
- next thing is wait till you see a yellow arrow pointing up.
- open a buy trade.
- place your stop loss a few pips (2-3) pips below the most recent support level. This ensures that you do not get stopped out prematurely.
- For your take profits, exit the trade when the risk to reward is 1:2 so if you risked 10 pips, then your take profit should be 20 pips.
Selling Rules
- Hotpips indicator red/blue histogram must be below the 0.00 level. This means its a downtrend (completely ignore the green histogram)
- next thing is wait till you see a light blue arrow pointing down.
- open a sell trade.
- place your stop loss a few pips (2-3) pips above the most recent resistance level. This ensures that you do not get stopped out prematurely.
- For your take profits, exit the trade when the risk to reward is 1:2 so if you risked 20 pips, then your take profit should be 40 pips.
Daily Profit Forex Trading Strategy Trade Setup Example
Here’s a chart showing you the trade setups and should give you an idea of how to trade this forex trading system:
Disadvantages of the Daily Profit Forex Trading Strategy
- this is a trend trading strategy so if you encounter a ranging market, you will get false signals so if you think you are in a trending market, don’t trade.
- you can notice on the chart above that buy and sell signals come in late after price has moved a great deal.
- your stop loss distance can be quite large therefore this can reduce the amount of contracts you trade as well as reduce your risk:reward ratio a fair bit
Advantages of This Daily Profit Forex Trading Strategy
I can see only one good advantage of this forex trading strategy:
- in a solid trending market, you can make a lot of profitable pips very easy.
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