Mastering the 50 Pips A Day Forex Strategy: A Step-By-Step Guide

Mastering the 50 Pips A Day Forex Strategy: A Step-By-Step Guide

Mastering the 50 Pips A Day Forex Strategy: A Step-By-Step Guide

Posted on September 15, 2023 Admin

In the fast-paced world of Forex trading, traders are constantly seeking strategies that can deliver consistent profits. One such strategy that has gained popularity over the years is the “50 Pips A Day” strategy. This approach is renowned for its simplicity and effectiveness in generating a steady stream of profits, making it an attractive option for traders at various skill levels.

Understanding the 50 Pips A Day Strategy

The 50 Pips A Day strategy is a trend-following system designed to capture small, manageable price movements in the Forex market. The goal is to target a modest 50 pips profit each day. While this might seem like a relatively small amount, it’s important to remember that consistency is key in Forex trading.

Key Components of the 50 Pips A Day Strategy:

1. Selecting the Right Currency Pairs:

Not all currency pairs are created equal. The most suitable pairs for this strategy are major pairs like EUR/USD, GBP/USD, and USD/JPY. These pairs typically have higher liquidity and lower spreads, making them ideal for capturing smaller price movements.

2. Time Frame:

The strategy works best on shorter timeframes, such as the 1-hour or 4-hour charts. These timeframes allow traders to identify short-term trends and execute trades with precision.

3. Indicators:

The strategy relies on a combination of indicators to make informed trading decisions. Commonly used indicators include the Moving Average (MA) and the Relative Strength Index (RSI). The MA helps identify the direction of the trend, while the RSI provides insight into overbought or oversold conditions.

4. Setting Stop Loss and Take Profit Levels:

To manage risk, it’s crucial to set appropriate stop loss and take profit levels for each trade. The 50 pips target serves as the take profit level, while the stop loss is typically set at around 20-30 pips.

5. Risk Management:

Maintaining a strict risk management strategy is paramount. Many successful traders advocate risking no more than 1-2% of your trading capital on a single trade.

Implementing the 50 Pips A Day Strategy

Step 1: Analyze the Market

Begin by identifying potential trading opportunities. Look for clear trends on your selected currency pairs using the chosen indicators. Ensure that market conditions are favorable for trading.

Step 2: Entry Point

Wait for a suitable entry point that aligns with the established trend. This could be a pullback in an uptrend or a retracement in a downtrend.

Step 3: Set Stop Loss and Take Profit

Place your stop loss and take profit levels according to your predetermined risk-reward ratio. This ensures that you have a clear exit strategy in place, regardless of how the trade unfolds.

Step 4: Monitor the Trade

Keep a close eye on the trade, but avoid the temptation to constantly adjust your positions. Stick to your original plan unless there are clear signs that market conditions have changed.

Step 5: Evaluate and Learn

After the trade is closed, take time to evaluate the outcome. Identify what worked well and what could be improved. Continuous learning and adaptation are crucial for long-term success.


The 50 Pips A Day Forex strategy is a powerful tool for traders seeking consistent, manageable gains in the Forex market. However, like any trading strategy, it comes with its own set of risks. It’s important to thoroughly backtest and practice this strategy on a demo account before applying it with real money.

Remember, no strategy guarantees success, and the Forex market is inherently unpredictable. Discipline, patience, and a solid risk management strategy are essential components of any successful trading approach. Happy trading!

How To Reduce Forex Trading Risks

Beginner’s Guide: How to Choose the Best Forex Broker

Disclaimer: Trading Forex involves a high level of risk and may not be suitable for all investors. Always consult with a qualified financial advisor and perform your own due diligence before making investment decisions.

Forex Strategies

Unveiling the Carry Trade Strategy: Profiting from Interest Rate Differentials

Posted on September 17, 2023 Admin

In the dynamic world of finance, investors are constantly seeking strategies that offer the potential for substantial returns while managing risks effectively. One such strategy... Red More

FX Trade Online

MyDigiTrade: A New Generation Of Social Trading

Posted on August 16, 2016 Admin

You don’t need to complete a multi-level training and spend time on acquiring practical skills in order to earn in any financial market any more.... Red More

FX Trade Online

Best Forex Strategies For Beginners

Posted on October 9, 2011 Admin

So it appears to a beginner that the market is so easy to win, just buy or sell and take your profits. It’s only after... Red More

FX Trade Online

Bollinger Bands Strategy Forex

Posted on September 15, 2011 Admin

One of the commonly sought Indicators for technical trading and also one of the easiest to use is the Indicator “Bollinger bands”. The indicator is... Red More

FX Trade Online

What is Forex grid trading strategy?

Posted on April 4, 2011 Admin

Forex markets are not always as complicated as they look to the newcomer. It’s mainly the indicators that confuse a trader as an indicator’s application... Red More

FX Trade Online

Forex Scalping Strategies

Posted on March 1, 2011 Admin

Here we learn that traders involved in Forex trading markets engage in different kinds of trading styles depending more on their own trading temperament. While... Red More

Categories List