Set and Forget 10 pips a day Strategy For MT4
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Set and Forget 10 pips a day Strategy For MT4 is a simple price action-based day trading strategy. The strategy uses a custom-made Trade Day indicator and Gann levels which identifies the potential breakout zone. Usually, the traders aim for 10 pips profit while using this trading strategy and the preferred time is the 4-hour chart.
At the initial stage, start using this strategy to trade the major currency pairs only. As you get comfortable with the new system, you may trade with minor currency pairs also.
The Set and Forget 10 pips a day Strategy For MT4 – Overview
The Set and Forget 10 pips a day Strategy For MT4 uses the Trade Day indicator as a prime filter which determines the potential direction of the breakout. The indicator usually determines the breakout after the opening of the new candles in the 4-hour candle. The users of this trading strategy may place pending buy and sell stop orders so that the trades get triggered as soon as the conditions are filled.
To understand how the breakout direction is identified and why the Gann level works as an entry triggering point, we should try to understand the functions of these two indicators.
Trade Day Indicator: The Trade Day indicator marks the starting of the D1 candle using a vertical red line. It also marks the high and the low of the day using a horizontal red line, which creates box patterns representing the high and low for that particular day.
The Trade Day indicator draws a line from the opening of the H4 candle of the day to the closing of the last H4 candle of the day. For our convenience, we will call these signal lines. If the line has a positive slope, we can expect a bullish breakout. On the contrary, if the slope is negative, we can expect a bearish breakout.
The first H4 candle of a new day closing above this Signal Line gives us the upward Gann level breakout direction. Similarly, the first H4 candle of a new day closing below this Signal Line gives us the downward Gann level breakout direction.
Gann Square of 9 Indicator: The Gann Square of 9 indicator uses the Gann forecasting method to determine the support and resistance levels, also known as Gann Levels. We will be using a +22.5- and - 22.5-degree to calculate the Gann Levels using this Gann Square of 9 indicators. Note that, the key function of the Gann level is to determine the potential stop-loss zone for the trades.
The Set and Forget 10 pips a day Strategy For MT4 – Buy Setup
Long trade setup:
The first H4 candle of a new trading day closes above the Trade Day indicator’s signal line gives us the indication for a bullish breakout.
We will then place a buy stop pending order above the nearest Gann Level and it should be close to the first H4 candle.
If our pending buy stop order doesn’t get triggered, we should delete the order and look for a new trade setup.
Take Profit:
According to the developer of this system, it is better to place a 10 pips target distance.
Stop Loss:
We place our stops 5 pips below the entry point.
The Set and Forget 10 pips a day Strategy For MT4 – Sell Setup
Short trade setups:
The first H4 candle of a new trading day closes below the Trade Day indicator’s signal line gives us the indication for a bearish breakout.
We will then place a sell stop pending order below the nearest Gann Level and it should be close to the first H4 candle.
If our pending sell stop order doesn’t get triggered, we should delete the order and look for a new trade setup.
Take Profit:
According to the developer of this system, it is better to place a 10 pips target distance.
Stop Loss:
The stop loss should be placed above the resistance level. Try not to use more than 5 pips Sl for the trade.
The Set and Forget 10 pips a day Strategy For MT4 – Conclusion
The Set and Forget 10 pips a day Strategy For MT4 is a simple strategy that finds the direction of the breakout by using some simple metrics. Being a novice trader, you should be learning this strategy in the paper trading account as you won't have to risk any real money. While learning the functions of this strategy, try to maintain a 1:2 risk to reward ratio. At times, you might get trade setups with a 1:1 risk to reward ratio but it is better to avoid such trade signals.
Note that, no trading system in the world is perfect. You have to trade with caution and manage the losing trades with strong confidence. Though the system is not that complex, you do have the liberty to use other trading method as different trading strategy tends to suit different types of traders.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
