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The 20 pips a day simple forex trading strategy is somewhat similar to these two forex strategies:

In case you may be interested: Check out forex trading signals

The Main Idea Behind The simple 20 Pips A Day Trading Strategy

The idea behind the simple 20 pips a day forex trading strategy is straightforward:

  • There are currency pairs that travel 99-150 pips in a day. So why not try to get a small portion of that daily move instead of getting 50 pips or 99 pips plus profit daily, which can be quite hard to get? In addition, it is much easier to make 20 pips profit than a 100 or 150 pips profit.
  • To do that, you will have to trade the previous day’s breakout candlestick’s low or high. So when the price breaks the last day’s candlestick‘s low, you take a sell trade. If the price breaks the high, you can take a buy trade.
  • And you then only aim for 20 pips profit.

So that’s the basic idea of the simple 20 pips a day forex trading strategy.

Forex Currency Pairs Can Be Traded With The 20 Pips A Day Forex Trading Strategy?

Any currency pair can be traded. If you only trade the major forex currencies, that is still ok.

What Are The Suitable Chart Timeframes?

For this forex system, it is suggested that you use the daily forex timeframe.

Any Other Forex Indicators Required?

You don’t need any other forex indicators with the 20 pips a day forex strategy.

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Main Forex Trading Session To Avoid

Forex trading happens 24hrs and follows around the globe.

Having said that, the trading volume is lower or higher based on what part of the world is awake and trading it.

The London forex trading session with New York is the best forex trading session to trade using this system.

But it would help if you avoid trading during the Asian session.


No sufficient trading volume to move price movement either up or down. That’s why.

So what this means is this: if the low or the high of the prior day’s candlestick was broken during the Asian market session, then do not trade that setup.

Simple Example of A Buy Trade Setup

The forex chart below is a daily chart of currency USDCAD. Here are the buy trade rules of how you can trade the simple 20 pips a day forex trading strategy:

  1. The first thing you do is open up your forex chart and place two opposite pending orders; a market buy stop pending order 1-2 pips above the high of the chart daily candlestick and a sell stop market pending order 1-2 pips below the low.
  2. set your trade stop loss at 20 pips
  3. Also, set your trade take profit target at 20 pips.
  4. If the high or low of the forex daily chart candlestick was already broken during the Asian trading session, do not trade. You want to see the breakout of the low or high of the daily chart candlestick happen during the London session or the New York Forex Trading Sessions.
  5. If one market pending order is activated, you must immediately cancel the other order. The chart high was broken in this case below, so the market sell stop pending order should be closed. 20-pips-a-day-forex-trading-strategy

Example of A Sell Trade Setup

The MT4 chart below shows an example of a market sells trade setup based on the simple 20 pips a day forex trading strategy. The strategy trading rules are the same as above but for this case, notice that the low of the daily chart candlestick was broken, so the pending sell stop order would have been activated.

This means the pending buy stop order must be canceled when that happens. 20-pips-a-day-forex-trading-system sell trade
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Advantages of the Simple 20 Pips A Day Forex Trading Strategy

  • It’s a straightforward price action forex trading strategy.
  • You can trade one currency pair daily, just aiming for 20 pips profit.

Disadvantages of the Simple 20 Pips A Day Forex Trading Strategy

  • The risk-reward ratio of 1:1 is not good. This means that if you lose ten times in a row, you need ten winning trades to recover your trading losses or have more wins than losses to recover your losses.
  • Twenty pips stop loss placed on a daily candlestick can be hit easily.

Read More: Counter-Trend RSI Forex Trading Strategy

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