Gaining 100 pips in a single trade is a popular milestone for forex traders seeking high-impact results. This article explores a practical, high-probability forex trading strategy focused on capturing 100 pips using proven techniques, sound risk management, and strong trading discipline. Whether you’re new to currency trading or looking to sharpen your edge, this guide outlines everything you need to know to pursue consistent 100-pip moves.

The phrase forex trading strategy 100 pips refers to a planned approach aimed at capturing a 100-pip gain from a trade, typically using swing trading or intraday breakout setups. In this article, we explore the structure, execution, and refinement of such strategies.

What Is a 100-Pip Forex Strategy?

A 100-pip strategy is designed to take advantage of high-volatility moves, usually over a few hours to a few days. These trades are not scalps but rather structured plays based on price action, trend confirmation, and fundamental context.

Who is it for?

• Intermediate to advanced traders
• Swing traders and breakout traders
• Forex traders who prefer 4H, Daily, or Weekly charts

Core Components of a 100-Pip Trading Strategy

1. Pair Selection and Volatility

Not all forex pairs are created equal when it comes to movement. Target pairs with historically strong average daily ranges (ADR) such as:

• GBP/JPY
• GBP/USD
• EUR/JPY
• EUR/USD
• USD/JPY

A high ADR (above 80 pips) is essential to provide enough room for a 100-pip move.

2. Timeframe Selection

Use multi-timeframe confluence:

• Daily chart: Identify overall trend and support/resistance zones
• 4H chart: Spot breakout patterns or trend continuation zones
• 1H chart: Time entries based on price action or news catalysts

3. Entry Triggers and Confirmation

Look for:

• Breakouts from consolidation with volume confirmation
• Retests of previous support/resistance after a breakout
• MACD and RSI alignment with trend direction
• Candlestick reversal patterns like engulfing or pin bars

4. Risk-Reward and Stop Placement

To justify a 100-pip target, use:

• Stop loss of 30–50 pips (based on technical structure)
• Risk-reward ratio of at least 1:2
• Position sizing based on total risk per trade (usually 1–2% of capital)

5. Trade Management Techniques

• Move stop loss to breakeven after 50 pips
• Trail stop manually using the 20 EMA or previous candle lows
• Avoid premature exits unless fundamentals shift

Example Setup: GBP/JPY Daily Breakout Strategy

• Identify a 3-day consolidation under key resistance (e.g. 200.00)
• Price breaks above with high volume
• Enter on a 1H pullback at 200.10
• Stop loss: 199.60 (50 pips below entry)
• Take profit: 201.10 (100 pips above entry)

This setup aligns technical momentum with a clear structure to target a 100-pip move.

Strategy Enhancement With Fundamentals

Traders who combine technicals with economic catalysts tend to gain a stronger edge. Examples include:

• BoE or BoJ policy announcements
• US Non-Farm Payrolls (NFP)
• Eurozone CPI or interest rate statements

Pairing these events with a Forex Course can dramatically boost your results by deepening your understanding of macro drivers and market psychology.

Key Takeaways

• Focus on volatile currency pairs with large average daily ranges
• Use confluence of timeframes and technical indicators for confirmation
• Aim for a 2:1 reward-to-risk ratio with proper stop-loss placement
• Integrate fundamental catalysts for high-conviction trades
• Practice strict discipline and review each trade for continuous improvement

Case Study: Applying the Strategy in a Trading Course

During a recent Traders MBA live mentorship session, students applied the 100-pip strategy on EUR/USD after a dovish Fed announcement. By identifying consolidation on the 4H chart and confirming a breakout on the 1H timeframe, one trader entered at 1.0700 with a stop at 1.0650 and took profit at 1.0800. The structured approach yielded a full 100-pip gain, reinforcing the power of combining technical insight with real-time market events.

Frequently Asked Questions

What is the best time to trade for a 100-pip strategy?

The London and New York sessions offer the most volatility, making them ideal for 100-pip strategies. Trading during news releases can also create rapid price movements.

Which forex pairs are best for 100-pip targets?

GBP/JPY, EUR/JPY, GBP/USD, and USD/JPY are popular due to their high daily volatility and tendency for large swings.

How do I manage risk in a 100-pip strategy?

Use stop losses between 30–50 pips, ensure a minimum 1:2 risk-reward ratio, and never risk more than 2% of your capital on a single trade.

Can beginners use this strategy?

While the strategy is best for those with some experience, beginners can start with smaller targets like 50 pips and gradually work up by practising in a demo account.

Do I need indicators for this strategy?

No, but indicators like RSI, MACD, and moving averages can provide confirmation and help manage entries and exits more effectively.