10 pips a day scalping strategy is a trade plan where trades buy currency pairs and hold onto it for a short period of time, all in an attempt to make 10 pips in a day. Here is a trade strategy developed by reputable traders which anyone at all that care enough to apply it in their trades can use to make 10 pips a day.
- Time frame: The time frame for this strategy should not be more than 15 minutes and not less than 5 minutes.
- Indicators: The Bollinger band and the stochastic oscillator are the two indicators that can be used in this strategy according to the specifications of the developer. Their parameters are 20, 0, 2 for the Bollinger band, and 5, 3, 3 for the stochastic oscillator.
After all the prerequisite have been met, the next thing will be to set up compatible charts and start trading. The deal is not to go for all ten pips in just a trade. The trade can be so good and can give 10 pips in a really short time frame, which is not bad on its own; if not, the best is to take what is available and run with it. Note that this scalping strategy has a really bad risk reward ratio, but with a high accuracy rate. Caution should be applied; great psychological control against fear, greed, and even hope, should be exercised.
GUIDELINES TO SCALPING 10 PIPS PER DAY
Here are the steps to look out for when scalping 10 pips
- Concentrate only on the major pairs
- While in the trade, make sure a close happens on the outside of the Bollinger band indicator
- It is important that the position of the stochastic oscillator indicator is either in oversold (that is below 20), or in overbought (that is above 80)
- The different colors of the candle serve different purposes. If the market is in an uptrend, be on the lookout for a red candle; look for a green candle if it is on a down trend. The red and green candles are known as the signal candles considering their responsibilities
- If the signal candle is seen (depending on the trend of the market), enter in that same direction and scalp
- Stop should be kept at 20 pips
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