The main idea behind the 20 pips a day forex trading strategy is really simple:
there are currency pairs that travel 100-150 pips in a day. So why no try to get a small portion of that daily move instead of trying to get 50 pips or 100 pips plus profit daily which can be quite hard to get? In addition, it is much more easy to make 20 pips profit than a 100 or 150 pips profit.
in order to do that, you have to trade the breakout of the previous day’s candlestick’s low or high. So when price breaks the prior day’s candlestick’s low, you take a sell trade. If price breaks the high, then you take a buy trade.
And you only aim for 20 pips profit.
So that’s the basic idea of the 20 pips a day forex trading strategy.
Currency Pairs That Can Be Traded With The 20 Pips A Day Trading Strategy?
Any currency pair can be traded. Or if you only trade the major currencies, that still ok.
What Are The Suitable Timeframes?
For this system, it is suggested that you use the daily timeframe.
Any Forex Indicators Required?
No, you don’t need any forex indicators with the 20 pips a day forex trading strategy.
Forex Trading Session To Avoid
Forex trading happens 24hrs and follows the sun around the globe.
Having said that, the forex trading volume is lower or higher based on what part of the world is awake and trading it.
The London forex trading session with the New York are the best forex trading sessions to trade using this system.
But you should avoid trading during the Asian forex trading session.
No sufficient trading volume to accelerate price movement either up or down. That’s why.
So what this really means is this: if the low or the high of the prior day’s candlestick was broken during the Asian session then do not trade that setup.