Audusd, 50 pips daily & 3sma strategy

 

50 Pips A Day

If you download a 2020 pdf with forex trading strategies, this will probably be one of the first you see. Beginners can also benefit from this simple yet robust technique since it’s by no means an advanced trading strategy. However, before venturing into any exotic pairs, it’s worth putting it through its paces with the major pairs.

So, when the 07:00 (GMT) candlestick closes, you need to place two contrasting pending orders. Firstly, place a buy stop order 2 pips above the high. Then place a sell stop order 2 pips below the low of the candlestick. As soon as price activates one of the orders, cancel the one that hasn’t been activated.

In addition, make sure you place a stop-loss order anywhere between 5-10 pips above the 07:00 high/low. This will help you keep a handle on your trading risk. Now set your profit target at 50 pips. At this point, you can kick back and relax whilst the market gets to work.

If the trade reaches or exceeds the profit target by the end of the day then all has gone to plan and you can repeat the next day. However, if the trade has a floating loss, wait until the end of the day before exiting the trade.

Simple Moving Averages

Another simple yet popular system, often found in PDFs with ‘1 or 5 minute trading strategies’, is called the 3SMA (simple moving average) crossover system. Most forex trading platforms come with the simple moving average chart tool, which adds lines that follows the average price over given numbers of time periods, the smaller the time-period the shorter-term averages it follows.

This strategy follows the interaction of three moving averages, normally set at around 15 periods, 30 periods and 100 periods. The 100 SMA represents the main trade, and all trades should be made in this direction.

The signals for a buy trade are that the price is above the 100 SMA, both the 15 and 30 SMAs are above the 100 SMA and the 15 SMA has crossed to above the 30 SMA. Trades should be closed when the price closes below the 30 SMA. For a sell trade, the conditions are completely reversed, with the lines stacked upside down and the price below the 100 SMA.

This system can be used with 4hr charts, though the strategy can be modified for shorter time frames with exponential moving averages (EMA), called the MACD 3-line system, which put more emphasis on the more recent price movements.

There are a myriad of other trading strategies and systems online, each with their own pdf guides, success rates and time frames. Many systems have indicators that can be downloaded and installed onto trading platforms, such as the 1-minute scalping, the 4-hour RSI forex trading strategy, the slingshot 30m strategy and System 9 6 Winners.

Other powerful strategies use statistical analysis, for example z-score systems. While many strategies can be effective, and those that crop up in several ‘7 winning strategies’-type PDFs may seem like the best, it is important to truly understand them to minimise risk and maximise profits.

For more detailed examples of top forex trading strategies, see our strategies page on intraday trading techniques.