Leverage: 1:50
49
Pair: EUR/USD
Volume: For a customer deposit of $100,000, we‘ll set the volume to 5 standard lots. The movement of 1 pip corresponds to $10 when 1 standard lot is traded. The detailed calculation of why we are using 5 standard lots is given in the Maximum Risk section below.
Goal: Earn $500 per week. This means that we need to earn 50 pips every week, which are 10 pips per day on average.
Time frame: Lower time frames like the 1 min or 5 min produce a lot of noises. However I do not have too much time to spare thus too long a time frame is not affordable. Thus my strategy would be using higher time frame chart like the 4 hours to look for trading opportunity as it has less noise and then go to the lower time frame like the 5 minutes chart to look for best entry.
Take Profit: 25 pips. This is meant to be flexible. 1st take profit level can also be set on the nearest trend line or resistance level.
Stop Loss: 35 pips. This is meant to be flexible. There can be other types of considerations:
- putting the stop loss 5 pips below the nearest Support Level for long position or 5 pips above the nearest Resistance Level for short position.
- Or 10 pips below or above previous day‘s high or low.
- Or 10 pips above/below the first Parabolic SAR spot appeared over/below the price candles for short/long trades.
- Remember to modify the open position plan if we choose the other data as our new stop loss – the 35 pips gap shouldn‘t be expanded too much.