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I like the idea of making 20 pips a trade, multiple times a day!
Because it’s not too much and not too less and is perfect for day trading, in and out of the markets by the end of play.
This way, you have less exposure and risk in the market, without having to have overnight open positions
Also, many pairs can easily move 20 pips and more on a typical trading day.
This of course creates multiple potential opportunities to catch 20 pips, many times in a day!
With my mission to find some 20 pip strategies, I’ve just done a backtest on one particular strategy that resulted in a 26% gain on a trading account in 1 day.
Let’s go through the strategy and its rules.
You will need Trading View charting software, which you can start for free here.
1. Open 15 Min chart,
2. Trading View Indicators: – Search for the following indicators and add them to your chart:
Fluid Trades (Pmgjiv), Q-Trend – tarasenko_
Rules for buy trades
1. For the asset/country, make sure there’s no upcoming news at https://www.dailyfx.com/economic-calendar
2. Price must bounce off the demand zone at least once
3. A new Buy or Strong Buy signal and green candlestick must be printed after the price bounced away from the demand zone
4. If all conditions are met, open buy trade, with 20 pips tp, 15 pips sl (Risk/Reward 1:1.3)
Here’s an example of a buy trade, which was the result of one of my backtest trades…
Rules for sell trades
1. For the asset/country, make sure there’s no upcoming news at https://www.dailyfx.com/economic-calendar
2. Price must bounce off the supply zone at least once
3. A new sell or Strong sell signal and red candlestick must be printed after the price bounced away from the supply zone
4. If all conditions are met, open sell trade, with 20 pips tp, 15 pips sl (Risk/Reward 1:1.3)
Here’s an example of a sell trade, which was the result of one of my backtest trades…
My quick backtest results.
I carried out a backtest for on date: 5th July 2023.
I searched for trade setups on multiple forex major and minor pairs.
I found the trade setups in a total of 24 different assets in one day.
Here are the results of my quick backtest.
As you can see, we gained a total of 335 pips, and grew the account by 26%, with a 95% win rate!
However, I wouldn’t get too much excited as the backtest data is very small, being 24 trades only.
I aim to further test this strategy as the initial backtest results are looking good so far.
What’s even more amazing is that I was able to find 24 setups in 1 day! Crazy.
Why not try it out for yourself and see what you get,.
To run this strategy, you will need Trading View app online, which you can start on the free plan.