Pips A Day Forex Trading System

days back, I had written a post about Millionaire Traders: Ordinary people who made fortunes trading forex. I talked about Hoosain Harneker: The 10 pips a day trader. He just makes 10 pips daily and has made a fortune trading forex over the years. Now you can also practice making 10 pips daily with this simple forex trading system. First practice how to use these indicators on your demo account. Once you get the feel of it and start making 10 pips with each trade than you can switch over to live trading.

Here’s the trading setup, entry rules, stop loss rules, and exit rules of this system. I truly believe it can potentially generate much more than 10 pips a day…but I’m sure like me, you’re probably sick of those unbelievable claims from the self-proclaimed forex ‘gurus’… You know, promises of 1000 pips a day… trillions of dollars overnight… OK, enough of my rants. Let’s get started right away:

Timeframe: 1-hour.
In this system, we use 3 indicators:
1. 5-period Exponential Moving Average (EMA 5) applied to the Close.
2. 12-period Exponential Moving Average (EMA 12) applied to the Close.
3. 21-period RSI (RSI 21)

Entry Rules for Long Trades:
It’s simple. We enter a long trade when EMA 5 crosses EMA 12 to the upside… 
AND our RSI 21 > 50.

Entry Rules for Short Trades:
Enter short when EMA 5 crosses EMA 12 to the downside.
AND RSI 21 < style="line-height: 1.6em; ">Stop loss = 20 – 30 pips… depending on the volatility of the currency pair. For more volatile pair, like GBP/USD, stop loss = 30 . For less volatile pair, like EUR/USD, use stop loss of 20 pips.

Timeframe: 1-hour
Exit Rules for Long Trades:
Exit the trade when EMA 5 crosses back below EMA 12
Or when RSI 21 < style="line-height: 1.6em; ">Or when price stalls at major resistance, trendline, pivot points, Fibonacci projection target.
Or when bearish engulfing patterns or inverted hammer patterns form.

Exit Rules for Short Trades:
Exit our short trade when EMA 5 crosses above EMA 12
OR RSI 21 > 50