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The 50 pips a Day Forex Strategy, which takes advantage of some highly liquid currency pairs' early market movement, is one of the favourite trading methods employed in the forex market. Some of the greatest currency pairs to trade with this particular strategy are the GBPUSD and EURUSD currency pairs. Traders open two positions or two opposing pending orders following the closing of the candlestick at 7am GMT. The other position is immediately cancelled when one of them is activated by price changes.
The stop-loss order is positioned anywhere between 5 and 10 pip above or below the candlestick that forms at 7 AM GMT, and the profit goal is set at 50 pip. This is done to control risk. After these parameters are established, the market must now complete the remaining tasks. Both day trading and scalping are quick-turnaround Forex trading methods. However, keep in mind that shorter-term investments entail higher risk because they typically involve more trades. Thus, it is crucial to guarantee efficient risk management.
See the following picture showing the EURUSD H1 chart
The 7 am bar is highlighted by circles. There may not have been a trading setup in some cases because the subsequent bar did not trade above or below the prior bar's high or low unless the trader kept their orders in the market.
The success of the 50-Pips a Day Forex Strategy depends on the current market situation it is in. As many others, this strategy hasn't been proven to be successful every time; it's only a starting point for your own ideas.
