Improved Forex Strategy «10 points Per Day for EURUSD»

Forex strategy «10 points a day» is a simple, but at the same time very effective system. It can be successfully traded by both a beginner and a professional. In fact, it is a modernized version of the «Strategy 10-40».

It has many varieties, and is somewhat similar to the Session Breakout strategy.

A little background

It is believed that the «10-40 Strategy» came from the world of gambling. Some traders, having stumbled upon this system, decided to adapt it for trading in the foreign exchange market. Quite successful, I have to admit.

The essence of the system is simple: a deal is opened with a fixed profit of 10 points, and a loss of 40 points. You need to open two opposite deals on two pairs — EUR/USD and GBP/USD. For example, we buy euro-dollar and sell pound-dollar.

But I managed to find a much more profitable trading option, which will be discussed below…

The essence of the strategy «10 points a day»

The strategy is based on breakouts of the high and low of the previous trading day. Most traders believe that if the previous day’s high is broken, the price will go up, and vice versa for the low.

Based on this, usually these two extremes are used by most traders as stop-loss orders. If the price breaks the low of the previous day, stop losses will be triggered and the price will fall for some more time. If the price breaks the maximum, then the price will rise for some more time!

Knowing these facts, we will earn by BUYing the previous day’s high and SELLing the previous day’s low.

But another category of FOREX traders use the same 2 points as a support and resistance level, and the price does not always move towards breaking the high and low of the previous day. Therefore, we need to use a fixed stop loss.

  • Recommended currency pair: EURUSD.

Forex Strategy "10 points for the EURUSD"
The placed pending orders are valid from 00.00 GMT until 00.00 GMT the next day.

1) We place 2 pending orders at 00.00 GMT — 1 for Buy (above the previous day’s high +2 points) and 1 for Sell (below the previous day’s low — 2 points).

2) Set Take Profit — 10 pips.

3) Safety Stop Loss — 30 pips.

4) An important feature: you need to pay attention ONLY to the 1st crossing of the maximum or minimum during the trading day (i.e. if pending orders were closed by stop loss or profit, then we do not place more orders on this day!)

5) The recommended risk is 2-5% of the deposit for each trade.

Video forex strategy «10 points on EURUSD»:

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