Forex Scalping Strategy of 50 Pips Per Day

Forex Scalping Strategy for 50 pips per day

This  is a fairly reasonable target since the ADR of the biggest pairs is at least 50 pips every day. In other words, since the big pairs move at least 50 pips every day, aiming for 50 pips is a highly sensible and smart target.

Another compelling reason to aim for 50 pips every day is that it provides a high Reward to Risk Ratio with a safe Stop Loss. You should always search for setups with a Reward to Risk Ratio higher than one to one. Ideally, you should seek for setups with a Reward to Risk Ratio of 2 to 1. 

So, if your Target Reward is 50 pips, 25 pips would be an appropriate quantity for your Risk. For most of the main pairs, a risk of 25 pips is regarded a safe stop loss. If, on the other hand, your Target Reward is merely 20 pips each day, chances are your Stop Loss is either highly dangerous or your Reward to Risk Ratio is poor. 

If you are going to enter a forex trade with any degree of risk, you should always establish a safe Stop Loss (at least 20 pips or more) while fulfilling a Reward to Risk Ratio larger than one to one, ideally around two to one. 

That is why it is preferable to aim for 50 pips each day rather than simply 20 pips per day, since you will have a safer Stop Loss and a greater Reward to Risk Ratio.

Also Read: Forex Trading Strategy For 50 Pips Per Day

Forex Scalping Strategy of 100 Pips Per Day

There are two methods for achieving 100 pips every day. The first method is to conduct two transactions every day, each with a take profit of 50 pips (two trades multiplied by 50 pips each). This is a fairly attainable goal. 

If you want to simply enter one trade each day, another method to earn 100 pips per day is to concentrate on GBP pairs (also known as Pound pairs). Any pair using GBP as the base or quotation currency often moves at least 100 pips each day.

 In other words, the ADR (Average Daily Range) for Pound pairs must be at least 100 pips. As a result, if you just want to make one trade per day with a profit target of 100 pips, it is best to stick to GBP pairs. It is important to remember, however, that GBP pairs are quite aggressive. 

This indicates that you should use caution while trading them. They move a big number of pips every day and do so quickly, creating a high reward/high risk scenario.

 Personally, I like the first option since I usually aim for 50 pips or more every trade. I am not interested in hitting home runs. Up to 50 pips every trade is plenty for me.

Whether you want to make 50 pips a day or 100 pips a day, it is important to only enter trades at big price levels; otherwise, no approach will work.