Daily Profit Forex Day Trading Strategy

Trading the forex market doesn’t need to be complicated at all. Applying a simple, logical forex strategy is all you need to reap profits from trading FX.

Here’s a look at how a simple day trading strategy can help you to make┬ádaily profits from currency trading.

Chart Setup

Used indicators: HotPips.ex4
Preferred time frame(s): M1, M5, M15
Trading sessions: London and US
Currency pairs: Low spread pairs

Download

Download The Daily Profit Forex Day Trading Strategy.

Example: EUR/USD M5 Chart

hotpips-forex-scalping-strategy

The figure above is an example of the daily profit forex day trading strategy in action on the 5 minute Euro/US Dollar chart.

You can see 5 trades – all 5 ended up with a profit.

Let’s take a look at the rules below:

Trading Rules

Buy trade:

  • Hotpips red/blue histogram above 0.00, this indicates an uptrend (ignore the green histogram).
  • Hotpips paints a yellow arrow.

==> Open buy trade. The stop is placed slightly below the most recent support level.

Take profits: Exit the buy trade at risk-to-reward 1:1.5. Alternatively, close the buy trade for 20-40 pips (depends on the pair’s volatility).

Sell trade:

  • Hotpips red/blue histogram below 0.00, this indicates an downtrend (again, ignore the green histogram).
  • Hotpips paints a blue arrow.

==> Open sell trade. The stop is placed slightly above the most recent resistance level.

Take profits: Exit the buy trade at risk-to-reward 1:1.5. Alternatively, close the sell trade for 20-40 pips (depends on the pair’s volatility).

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