The forex market has proven itself to be one of the most profitable markets for individual and micro traders. Its decentralized nature has given the opportunity to anyone from anywhere in the world to be able to have access to this financial market and be able to trade.
This decentralized nature of the market has created a sort of open source spirit for it where everyone is also able to tweak it in the way they want. They are also able to add their own twist and style of trading to this market. As a result we have countless personalized and unique trading strategies and trading techniques in the forex market. One of these highly unique strategies developed by an individual is called the Pipo strategy.
In this article we want to take a closer look at the Pipo strategy in the forex market and see how it can be used to bring you more profitable trades. But first, we will take a look at trading in the forex market and what factors contribute to a successful trading experience.
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Why Is the Forex Market a Great Choice for Individual Traders?
There is a reason why there are so many traders being attracted to the forex market and why so many of them decide to even invent their own unique trading approach and trading strategy such as the Pipo trading strategy.
The forex market is a truly decentralized market, which means there is no centralized entity in charge of the market. This further means that this market can be accessed via online terminals which provides an opportunity for everyone to be able to access this market from anywhere in the world. No matter which country you live in, you can begin trading with forex. This is not the case with many of the other markets, such as the stock markets that belong to each country.
Furthermore, the forex market is active 24 hours a day. This also gives people a chance to manage their schedules in such a way that it provides the opportunity for them to trade at any time that is more suitable for them.
Moreover, forex has many small fluctuations in small time frames thanks to the small scale volatility of foreign currencies. It makes this market optimal for short term trading approaches, such as scalping and day trading.
On the other hand, this market has a tremendous daily trading volume which helps with its liquidity. This is a huge advantage for many traders who wish to liquidate their profits at any time they want.
Now let’s take a quick detour before discussing the Pipo strategy and see what factors are influential in the outcome of trades in this market.
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What Factors Influence the Outcome of Trades in the Forex Market?
In order to fully understand the Pipo strategy, we must first look at the factors that influence the outcome in forex.
Perhaps nothing is more important than trading strategy. It is your trading strategy that defines the outcome of every single move in the forex market. Your trading strategy will help you decide where to enter, i.e. the entry point, where to exit, i.e. your exit point, your position size, which is how much money you allocate to every single position, as well as all of your risk management parameters including the stop loss.
This is precisely why your trading strategy is so important. And this is also why so many traders have sought out to create their own unique trading strategy and share it with other traders in this market.
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What Is the Pipo Strategy?
The Pipo trading strategy has been designed and developed by an Iranian market analyst and trader called Nima Azadi who worked on this strategy for more than two years.
The basis of this strategy is to obtain profits in the forex market with the help of moving average indicators. The creator of the Pipo trading strategy worked on more than 500 moving average indicators in order to create this strategy. Moreover, the Pipo strategy only works on 15-minute time frames.
So the basis of the Pipo strategy are the moving averages that are actually some of the most applied and popular technical indicators in the forex market. Moving averages provide an easy-to-understand market analysis and as such they can be very useful to gain an understanding of the market and make profitable moves.
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How Can You Use the Pipo Strategy in Forex?
The very first move in using the Pipo strategy is to determine the overall market condition. This means we need to determine what the general trajectory of the market is. Is the market bullish so we need to take a long position or is the market bearish and so we need to take a short position?
Then we can use the Pipo strategy in order to find the best and more accurate entry points and also exit points to maximize profits and minimize losses.
The Pipo strategy has been designed to have a 50% take profit in the worst case scenario. Basically with the help of this trading strategy you can adjust the trading process based on pivots in global markets within the 15-minute time frame.
Furthermore, three moving averages are used in order to create the Pipo moving average line. The three moving averages are 12-day, 32-day, and 200-day moving average indicators.
And because this strategy was developed by an Iranian trader, as it is claimed by him, it is best used between 10AM and 7PM Iran standard time.
Conclusion
The forex market can be considered one of the best financial markets in the world for individual traders. But the key to profitability in this market is applying the right trading strategy. We discussed one strategy in particular known as the Pipo strategy, which helps traders gain an average analysis of the market through the use of moving average indicators.
