Today I decided to tell you about 100 pips a day strategies, which are very popular among traders nowadays.
Description of 100 pips a day strategies
Let me remind you that in the Forex market, a trader can both receive and suffer losses. Whatever profitable strategy you use, further success depends on a huge number of factors. The success of a trader largely depends on factors such as psychological stability, self-discipline, and experience in trading.
If you look at the statistics, it is not difficult to make sure that it is quite possible to earn one hundred pips per day. Usually, professional speculators earn about 80% per year from the amount of money they deposit. In other words, if the trader's initial cash amount is 100 thousand rubles, the annual profit will be 80 thousand. But I want to note right away that even experienced traders have black days. Therefore, on any given day, a trader risks losing part of his savings or even the entire amount of money.
The 100 pips per day strategy assumes the receipt of this income either from the opening of one transaction or throughout the entire trading day.
This trading technique involves trading on a daily chart. And such a time frame was chosen for a reason, since it is much safer to trade on larger time frames, since the rules of technical analysis function much more efficiently on them. It is also worth noting that long-term trading involves less time expenditure, since when trading on long time frames, a trader needs to spend much less time in front of a computer screen.
Today I will tell you about several trading strategies that bring income in the amount of 100 pips per day. The trading techniques that you will learn about later have a lot in common. Which one you choose is up to you.
Profitable strategy 100 points per day
So, the first strategy involves trading on the D1 chart of the euro / yen currency pair. This trading technique involves the use of the AO indicator, which is overlaid with the Stochastic tool with settings of 5,3,3.
Download indicators and template for 100 pips a day strategy
Let's look at the conditions for opening a deal using this strategy. So, it is recommended to open buy orders under the following conditions:
- The Stochastic Oscillator is located in the pius zone.
- The curve below passes through the zero level.
This trading technique is profitable, but at the same time quite risky. But due to the use of the daily time frame, on which the instrument gives more accurate signals, the ratio of profit to risks is turned in favor of the speculator. This vehicle is suitable for use on any steam.
Strategy 100 pips per trade
The second trading method involves taking into account the maximum / minimum price for the previous trading day. This technique is intended for use on the hourly chart on the euro/dollar pair. I want to immediately note that this strategy makes it possible to fix income in the amount of one hundred points in just 1 order, and not per day. The strategy involves the creation of positions during the operation of the exchange in Australia.
At 2 am Moscow time, you need to open a Buy-Stop order ten pips above the daily maximum, as well as a Sell Stop order sixteen pips below the minimum value. Take-Profit must be equal to 100 pips, and stop-loss - 25 points. You can download the indicator for this strategy at the top, along with the template from the first strategy.
As soon as the price passes in the direction favorable for the trader 50 points, the stop should be moved to break even. After that, you need to activate Trailing Stop.
This trading system is called one hundred pips per day, but it allows you to get more serious income. Speculators using this trading technique often earn 800 pips a day.
100 pips per day strategy with MACD
Another strategy of 100 pips per day is preferred by beginners. This order creation technique involves the use of the indicator. This algorithm is based on a pair of simple moving averages and displays the difference between them. This tool is designed to track changes in market sentiment. It is often compared to moving averages, but it boasts a faster response to price impulses and pre-displays signals to create positions on the screen. This feature is used in this method of creating positions.
So, making deals using this method is quite simple. It is developed on the basis of the theory that the price is constantly changing. Based on the MACD indicator, we enter the market and keep trades open for some time. When the indicator's signal curve crosses the histogram located in the zero zone, it is recommended to open buy trades. It is recommended to create sell deals when the signal curve crosses the histogram located in the positive area. As soon as the curve returns to the bar area, you should close the existing positions.
This trading technique is notable for the fact that it does not involve the installation of takes and stops. The trader needs to monitor what is happening in the market on his own, but if you wish, you can still set stops to protect yourself from losses.
This trading technique is universal and is suitable for use on any pair.
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Forex strategies that consistently make a profit and do not require complex chart analysis are highly valued by traders.
When working on such trading systems, a trader does not need to stay in front of the monitor for a long time, analysis of the situation, if performed, takes a couple of minutes at most. Usually, such TSs are not enough stars from the sky, but they can provide a more or less stable result. In this review, we will understand whether the Forex strategy of 100 points per day can be considered reliable and whether it is possible to earn money with it.
The idea of a trading system
In the market, in addition to large players, there are a lot of ordinary traders, and the influence of the crowd on the behavior of the market cannot be neglected. It is curious that although each trader is individual, the logic of actions for many is the same. The point here is that traders read the same literature, use the same data sources.
The 100 pips a day strategy is built on the fact that many see daily support and resistance levels as markers indicating the direction of the market. As soon as, for example, a breakdown of yesterday's high occurs, a huge number of traders immediately begin to consider the market as bullish.
With regard to profit, it all depends on the state of the market:
- If yesterday's level breaks through at a market reversal or when exiting a flat, then the chart can pass 200-300 points for highly volatile pairs.
After the breakdown of the low, the chart went in the right direction for 300 points.
- In a calm market, Forex will not allow you to take 100 points a day. This is the most difficult period for a trading strategy. There may be a series of false breakouts of the previous day's range boundaries.
During a flat, the strategy does not work.
The goal of 100 points per day in this trading system is chosen more as a guide, the maximum that you can count on. The chart often does not reach this number, so you will have to move the stop loss to breakeven, use a trailing stop. It is desirable to provide filters for entering the market.
How is the 100 pips per day traded?
The basic version of the strategy does not need indicators, it is enough just to draw the levels at the High and Low prices of yesterday. You can enter the market:
- At the market price, directly at the close of the breakout Japanese candlestick or wait for a retest of the broken level.
- Pending order. In this case, Buy Stop and Sell Stop orders are placed outside the range of the previous day. For insurance against price overshoot for these levels, pending orders are placed at a distance of 10 points from the levels. This Forex strategy is highly dependent on the volatility of the pair, so the distance from the level to the pending order can be adjusted.
Examples of transactions using pending orders and at the market price.
There is no fixed stop loss in the strategy. Choose its size based on the volatility of the currency pair. If a local extremum was formed before the breakdown of the level, you can place a stop behind it.
Is it realistic to take 100 points a day every time?
Although the trading system is called that, it is far from always possible to take just such a profit. Often the chart simply does not go in the direction of the breakout of 100 points, it may not reach Take Profit a bit, turn around almost immediately after the breakout. There are a lot of options, but our goal is to reduce the risk as quickly as possible and squeeze the maximum out of the transaction.
The 100 pips a day strategy leaves a lot to the trader's discretion. Let's consider several situations:
- Immediately after the breakout, the chart goes in a profitable direction. When the profit reaches 50 points (half of the take profit), we close half of the deal, and move the remaining stop to breakeven.
After fixing half of the deal, we no longer risk anything.
- 100 points per day Forex does not always allow you to take. There are situations when, after a breakdown, the chart goes in a profitable direction by 200-300 points. To take such movements, you can trail the rest of the deal. In the example in the figure below, for the second half of the trade, instead of 100 points of profit, it would be possible to take about 200-230 points of profit (depending on the size of the trailing stop).
The trailing stop increased the profit on the second half of the trade.
- Instead of 100 pips per day, Forex can also bring losses on some transactions. A triggered stop loss is normal, the main thing is not to move it if the chart goes against you.
Stop losses will be triggered very often if you take all the signals without exception. Therefore, it is simply necessary to filter the signals.
Weakness of the strategy
Each trading system has flaws, the Forex 100 pips a day strategy does not perform well during a flat. The worst thing is that it is impossible to predict in advance whether the flat will end the next day or not.
You can try to use the ATR indicator to determine the volatility, but it will just show the volatility on the current candle. Difficult parts of the market will not help to filter.
As an option, this Forex strategy can be supplemented with Bollinger bands. If there was a sharp movement on the previous day, the chart went beyond the BB bands, then such levels should not be taken into work.
Usually, after days of high volatility, there is rarely a breakdown in the same direction. The schedule may start to adjust. Going beyond the range of yesterday's candle, if it takes place, will not lead to strong movements.
Due to this, the strategy of 100 points per day should give fewer signals. Such a filter will also reject a number of profitable signals, but the overall ratio of profitable and losing trades should grow.
In general, despite all the precautions, it will not be possible to completely get rid of stops. Your task is to minimize losses as much as possible and let profits run.
Conclusion
The 100 pips a day Forex strategy is very simple and at first glance resembles the 10 pips a day TS. But in that strategy, the bet was made on the fact that due to the triggering of the accumulation of orders, the price would pass 10-15 points towards the breakdown. Here the logic is completely different - we are counting on a full-fledged movement towards the breakdown of yesterday's candle range. The weak point of the TS is the sections of the chart without strong movements. It is impossible to predict in advance whether there will be a confident movement the next day, and therefore the effectiveness of the system is in question. Everything looks good on history, but there are no reviews that this Forex strategy is profitable.
Forex strategy for 100 points per day is a kind of breakout TS based on the search for entry points for the breakdown of one of the key levels. At the same time, the offensive will be successfully developed, which will bring the trader from 100 to 200 points of profit per day, in contrast to a similar breakdown system, which modestly promises the stock speculator 10 pips of profit per day session.
TOP 3 Forex brokers in the world:
- It is quite volatile and liquid.
- During the Asian session, the asset is mainly in a flat, gaining potential, but when the European exchanges open, the pair makes a breakthrough.
- The spread for this currency pair is smaller than for most trading instruments.
To work on the strategy, the time interval H1 is taken, which takes into account the price extremes of the previous trading day.
Before the start of trading at two o'clock in the morning in Moscow, two pending stop orders are placed in both directions. Buy-stop is recommended to be placed at the level of ten pips from the previous maximum quote, and sell-stop - below the minimum level of the previous closing price. Stops in both directions are 25 pips, and take profit is certainly 100 pips.
There is still a rational grain here:
- When the profit reaches the level of 50 points, the protective stop order moves to breakeven and half of the position is closed.
- Setting a trailing stop of 50 pips in anticipation of a coveted 100 pips profit for the remaining half of the position.
To work on the strategy, you can install the following tools as additional filters:
- Stochastic with settings 5,3,3;
- AS Bill Williams.
Important! A short position should be opened when the red bar of the AC histogram crosses the zero level with its subsequent downward movement when the Stochastic is below the zero mark. With opposite values of the indicators, purchases are made.
Features of the trading strategy
This strategy is designed to maximize profit from a single impulse, which also entails additional risks. If, when trading on the TS with a target of 10-20 pips, the probability of closing on the take is high enough, then the chances that the price will pass more than 100 pips do not exceed 10%.
This means that trading according to the "100 pips per day" strategy only makes sense if a hard stop loss of no more than 10 pips is set (which already contradicts the original intention of the authors).
The 100 pips target may not be reached for several reasons:
- The breakdown may turn out to be false, and the price, having passed 5-10 pips outside the range, will turn around and again go into flat mode.
- The channel can break through, but the momentum is not enough to move a whole figure. As a result, the trend will turn out to be too short, which will allow, at best, to get half the profit from one of the two transactions, and close the second at breakeven.
The profitability of the strategy directly depends on the presence of a trend in the market. Only in this case is it permissible to open a transaction. During flat periods, trading according to the strategy will not only not bring profit, but will also force the trader to catch “moose” over and over again.
Forex strategy "100 pips per trade"
The goal of the strategy is to receive profit from 100 to 800+ points works on daily charts (D1), this interval was chosen because trading on long-term time frames is actually much easier, because. the rules of technical analysis work better and more often on them, and besides, you will not be thirsty to sit at the monitor all day.
Essence of Forex Strategy:
- Open the daily chart (D1) for the EURJPY currency pair (despite the fact that this Forex strategy works on other currency pairs, and if you want, you can try to apply it for other time periods)
- We place the Bill Willam’s Accelerator Oscillator (AC) indicator on the chart
- We impose the Stochastic Oscillator indicator on the AC indicator with settings 5,3,3 (if you don’t know how to do it, you can download the template for Metatrader 4 at the end of the strategy)
More than 100% profit in 6 days per month
Many of us have heard over the years that the last few days of the month and the first few trading days of the new month tend to be bullish. I first heard this when Kevin Haggerty wrote about it on TradingMarkets about six years ago. Kevin was the head of trading at Fidelity Capital Markets for many years, so he had a better opportunity to observe this market behavior than most of us.
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