The following Day-Trading strategies are characterized by the high Take Profit / Loss (P/L) Ratio

Introduction to Day-Trading Strategies

The day-trading strategies are very popular among Forex traders as they provide the chance of making fast and good profits on a daily basis. Day-traders are using high capital leverage and therefore they are exposed to high levels of market risk. Day-Traders are trading any pair among the Forex majors (USD, EUR, JPY, CHF, CAD, AUD, NZD) but they prefer three particular pairs EURUSD, GBPUSD and USDJPY as these pairs are offered with the tightest spreads in the market.

Characteristics of a Day-Trading Strategy

The following Day-Trading strategies are characterized by the high Take Profit / Loss (P/L) Ratio. The P/L ratio in Day-Trading strategies is far greater than in scalping strategies and exceeds it may even exceed P/L=2. Moreover, in contradiction with the scalping strategies you get a far less number of trades on a daily basis (3-6).

■ Daily Trades: 3 – 6 trades

■ Profit/Loss Ratio: 1.5 – 2.5

■ Leverage: 1:50 – 1:200

■ Spreads: very important (max 2.0-2.5 pips)

■ Slippage: very important

■ Overnight Charges: Day-Traders should not keep open positions overnight, therefore irrelevant

■ Upcoming News: they generally avoid trading 30 minutes before and after important news

As in the case of scalping, day-trading should be limited only in low-cost trading opportunities. That means a Forex Day-trader usually selects to trade only the Forex Majors. In the case of a Metals Day-Trader, he selects to trade Gold and Silver.

The trading cost of any Day-Traded can be limited by joining a Trading Rebate Plan Information about our free Rebate Plans

Day-Trading Strategies

TRADING STRATEGIES

ASSET AND TIMEFRAME

INDICATORS

TAKE PROFIT AND STOP-LOSS

MORE INFO

THE STOCHASTIC DAY-TRADING STRATEGY

■ M5 time frame

■ EURUSD and GBPUSD

■ 2-4 daily trades

Stochastic Oscillator

Settings at 5,3,3

Fibonacci Retracement

Standard settings

■ Take Profit:

40-50 pips

■ Stop-Loss:

15-20 pips

 

■ Profit/Loss Ratio:

2.5

The Stochastic Trading Strategy

BOLLINGER-RSI DAY-TRADING STRATEGY

■ M5 time frame

■ Forex Majors

■ 5-7 daily trades

Bollinger Bands

(i) 12 Periods

(ii) Deviations 2

(iii) Shift 0

 

■ RSI

The standard settings (14,9)

■ Take Profit:

50-70 pips

■ Stop-Loss:

20-25 pips

 

■ Profit/Loss Ratio:

2.5

Bollinger-RSI Day-Trade Strategy

BREAKOUT STRATEGY

■ Multiple Timeframes

■ Forex Majors

■ Metals and Energy

■ Stocks and Indices

■ 1-3 daily trades

■ Support/Resistance

■ Chart Patterns

■ MACD/RSI

MACD or RSI charts divergences

■ Variable Stop-Loss and Take-Profit levels

■ Profit/Loss Ratio:

Higher than 3

► The Breakout Strategy

TRADE THE FALSEBREAK CANDLE

■ Multiple Timeframes

■ Forex Majors

■ Metals and Energy

■ Stocks and Indices

■ 2-4 daily trades

■ Closest support and resistance levels

■ A Falsebreak candle.

■ Take Profit:

200-250 pips

 

■ Stop-Loss:

80 pips

■ Profit/Loss Ratio:

2.5

Falsebreak Candle Strategy

 

FIND ALSO: ► EA BUILDER TESTER | ► GET STARTED WITH FOREX | ► TRADE SYSTEMS

STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX REBATES | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

 

 

Day-Trading Strategies

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