30-pips-a-day trading strategy

30-pips-a-day trading strategy

2023-04-03 • Updated

30-pips-a-day is a trading strategy used with the volatile currency pairs like GBP/JPY. That is because this approach requires a wide space for trading maneuvers to obtain the required profit margin. Also, volatile currencies often provide clearer market reversal points. The timeframe used in this approach is 5 min.

Indicators used

  • 10-period Exponential Moving Average
  • 26-period Exponential Moving Average

Below you will see how you can find the Moving Average indicator in the MetaTrader menu and where to set the Exponential method for it.

13.png

Main idea

The EMAs crossings are used to define the trend.

If the 10-EMA crosses the 26-EMA bottom-up and continues rising, it is a sign of an uptrend.

If the 10-EMA crosses the 26-EMA upside-down and continues falling, there is pressure down on the price.

Opening and closing trades

Step 1

You wait for the 10-EMA to cross the 26-EMA. That will give you an indication to prepare for opening a position. Moreover, the way the 10-EMA crosses the 26-EMA defines the direction of trade opening, as will be explained in the scenarios below.

Step 2

You wait for the price to follow the direction indicated by the EMAs to confirm your market interpretation.

Step 3

You wait for a local correction against the observed trend. You will open a position at the high/low of this retrace. Your intention here will be to catch the range that the price will go through after getting out of the correction and following the observed trend again.

Below are the examples.

Examples

Short position

On the M5 chart of GBPJPY, we observe a downtrend. In addition, we see that the 10-EMA has crossed the 26-EMA upside-down and continued going down. Therefore, we decide to sell on the falling trend.

However, we do not sell immediately. Instead, we wait until the price moves up in a correction to reach at least the middle point between the two EMAs. Now we place a sell order.

The stop loss should be placed 15-20 pips above the sell order level. The take profit is 30-40 pips.

2.png

Long position

The same logic is applied to the rising market.

On the M5 chart of GBPJPY, we observe an uptrend. Also, we see that the 10-EMA has crossed the 26-EMA bottom-up and continued rising. Therefore, we decide to buy on the rising trend.

However, we do not buy immediately. Instead, we wait until the price moves down in a correction to reach at least the middle point between the two EMAs. Now we place a buy order.

Note: in this scenario, the price not only moved down to the middle point between the EMAs but dropped even lower – that is also acceptable. The idea here is to confirm that the retrace is significant enough to give maximum gain until the take-profit is activated.

The stop loss should be placed 15-20 pips below the buy order level. The take profit is 30-40 pips away.

3.png

Pay attention

As you can see, the Take Profit and Stop Loss levels are fairly far away from the position opening level. That is why the volatility of the currency is required to reach these levels and make the strategy work. On the other hand, this approach may be considered relatively risky for the same reason. The Stop Loss (15-20 pips) to Take Profit (30-40 pips) ratio is 1 to 2. The traders need to weigh this against the available equity and risk-management in use.

Making a conclusion, we can say that 30-pips-a-day is an interesting and aggressive strategy to make good profit with each trade. It is easily used but requires a good nerve. Cross-checked with standard trend analysis, it may be a good tool in a trader’s arsenal.

Similar

Frequently asked questions

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

  • Why is FBS the best broker for online trading?

    FBS is a legitimate Forex broker regulated by the Financial Services Commission (Belize), license 000102/460, which makes it trustworthy and reliable. We offer our clients some of the best trading conditions on the market, with convenient trading tools such as 550+ instruments like Forex, Stock CFDs, Metals, Indices and Energies derivatives, Crypto commodities, as well as the FBS IB Program where Partners can earn up to 43% of spread from their clients’ trading. Our 24/7 customer support is always there to help with any questions.

  • How to open an FBS account?

    Click the 'Open account' button on our website and proceed to the Trader Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

 1
 93
 355
 213
 1684
 376
 244
 1264
 672
 1268
 54
 374
 297
 61
 43
 994
 1242
 973
 880
 1246
 375
 32
 501
 229
 1441
 975
 591
 387
 267
 55
 246
 673
 359
 226
 257
 855
 237
 1
 238
 1345
 236
 235
 56
 86
 61
 61
 57
 269
 242
 243
 682
 506
 225
 385
 53
 357
 420
 45
 253
 1767
 1809
 593
 20
 503
 240
 291
 372
 251
 500
 298
 679
 358
 33
 594
 689
 241
 220
 995
 49
 233
 350
 30
 299
 1473
 590
 1671
 502
 224
 245
 592
 509
 39
 504
 852
 36
 354
 91
 62
 98
 964
 353
 44
 972
 39
 1876
 81
 962
 7
 254
 686
 850
 82
 965
 996
 856
 371
 961
 266
 231
 218
 423
 370
 352
 853
 389
 261
 265
 60
 960
 223
 356
 692
 596
 222
 230
 262
 52
 691
 373
 377
 976
 382
 1664
 212
 258
 95
 264
 674
 977
 31
 599
 687
 64
 505
 227
 234
 683
 672
 1670
 47
 968
 92
 680
 970
 507
 675
 595
 51
 63
 64
 48
 351
 1787
 974
 262
 40
 7
 250
 590
 290
 1869
 1758
 590
 508
 1784
 685
 378
 239
 966
 221
 381
 248
 232
 65
 421
 386
 677
 252
 27
 500
 34
 94
 249
 597
 268
 46
 41
 963
 886
 992
 255
 66
 670
 228
 690
 676
 1868
 216
 90
 993
 1649
 688
 256
 380
 971
 44
 1
 1
 598
 998
 678
 58
 84
 1284
 1
 681
 2
 967
 260
 263
00:00
00:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
23:00
23:00
00:00
01:00
02:00
03:00
04:00
05:00
06:00
07:00
08:00
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera