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
- 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.
- 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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