50 Pips A Day Forex Trading Strategy Using 1hr Timeframe

Disclaimer: I have not tested this 50 pips a day forex trading strategy apart form just a quick back tested results shown below but  tell you what? It does really look promising.

This is a forex trading strategy that you can use on the EURUSD and GBPUSD currency pairs. We know that these two currency pairs move 100-150 pips or more in any given day. So what this strategy is all about is trying to capture the move early on during the day before the day’s move happens.

In order to do that, you have to place your trade at the close of the 7am GMT candlestick ( 1hr candlestick). You need to check with your forex broker to know what time you are seeing on your charts matches the 7am GMT.



  1. Wait for the 1 hr 7am GMT candlestick to close.
  2. Then a buy stop order 2 pips above the high of the candlestick and similarly also place a sell stop order 2 pips below the low of the candlestick.
  3. When price activates a pending order on one side, you have to cancel the other that has not been activated.
  4. Place you stop loss  anywhere from 5-10 pips pips above the high/low of the 7am GMT candlestick after it closes(or has formed). Sometimes, you will see that If 7am Gmt candlestick length is too short and if placing  stop loss of  5 pips above high/low is too close to the price action, so to avoid getting stopped out prematurely, simply increase your stop loss distance a little bit further to around to maybe 15 pips.
  5. Set your take profit target at 50 pips.
  6. Leave the trade to run and don’t do anything like moving stop loss to breakeven or taking partial profits off.
  7. If your profit target of 50 pips is hit during that day, then the repeat the same process every day at 7am GMT.



Below is a the chart of EURUSD:

  • I’ve just analysed the the most recent 6 days that have passed.
  • Which means if trades were executed following the rules above, there would have been a total 6 trades (excluding the day that is now currently running).
  • and 4 trades would have been  winners and 2 would be losers.
  • each vertical line drawn represents the 7am GMT time and they are spaced 24hrs apart ( 1 day). Check chart below for clarity.

Note: I’m not really sure that the 7am time shown on my chart is the 7AM GMT time…I need to check  and confirm that(but  that does not really matter, you should get the idea of what I’m trying to explain here, ok? that’s the point of the chart below anyway…)

50 pips a day forex trading system


  • it allows you to take only 5 trades a week. This is really good because it stops you from over trading.
  • your stop loss distance would be entirely dependent on the length of the 1hr candlestick plus the 5-10pips you need to add onto to ensure you do not get stopped out prematurely. So in general, your stop loss would be anywhere from 15-25 pips.
  • this is price action trading, no other forex indicators involved here.
  • you only have to go and open up your EURUSD chart and do some analysis for the previous month and see how the profit and loss stacks up??? And would you be profitable at the end of the month if you followed this system???


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10 Responses to “50 Pips A Day Forex Trading Strategy Using 1hr Timeframe”

  1. fasih says:

    i have backtested it over a year on eu and gj.. not a profitable method..

  2. Patrick says:

    There are hundreds of techniques out there and they all work. The main problem lies with the individual trader in making the decision when to buy and when to sell. Trading is a game of battling your demons. When you can control your demons, then you will be a profitable trader. So, it’s not about learning new tricks of the trade.

    • Mangi Madang says:

      Hi Patrick,

      thanks for your comment. You are right in saying what you wrote. Traders have different personalities.

      So if you give 2 traders one trading system with very clear rules on when to buy and when to take profit and where to place stop loss etc…and tell them to trade with the same amount of money in their trading account, both of them will have different results in the end.

      Why is that?

      Because The “human element” comes into play in a trading system( a SYSTEM pretty much has fixed rules!)

      That’s why one trader will say that “oh, this sytem is not working for me” and you will have another trader saying “Guess, what I love this system, its working for me, Im making money with it”.


      Mangi Madang

  3. Russ says:

    Your candle on my chart is the 6-7pm candle .. will check it out , looks simple

  4. Mangi Madang says:

    Hey Russ,

    mate, I was using whatever the 7am time that I saw in my chart(as an example) and as I mentioned it may not be the 7am GMT time.

    depends on where you come from, the 7am gmt time will be different to the local time zone you have, thats why I said better check with your broker to see what the 7am gmt time is in your local time.


    Mangi Madang

  5. Kay says:

    Can you confirm that the 7am GMT is the hour before London Open? That will help because there is a lot of difference between the hour before the open and the 1st hour of the trading. And I noticed that if the 7am candles is either the hour before the open or the 1st hour of the London Open, they are hardly less than 30-40pips, so the 25 pips is hardly ever going to be the high or the low of the candle. Please help.
    Otherwise, it seems a great and simple idea.
    Thank you.

    • Mangi Madang says:


      this is your answer: London opens at 8:00 am and closes at 05:00 pm GMT.

      so yes, the 7AM GMT is the 1hr candlestick before the london markets opens at 8am GMT.


      Mangi Madang

  6. Govert says:

    Kay,Mangi, pls note that GMT (Greenwich Mean Time is constant, but local time may differ, if your country uses summer and winter time. So google greenwhich mean time and see when your local time changes into winter time again. The difference generally is one hour. Best regards. Govert

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