The 20-Pip Challenge — How To
A simple, disciplined framework for traders: aim for +20 pips (or a small fixed dollar %), then stop. If you break your rules or fail a day, you go back to the previous day. This builds process discipline, protects capital, and trains patience.
What is the 20-Pip Challenge?
It’s a structured routine: capture a small, consistent daily move — +20 pips — and stop trading for the day. Many traders also tie this to a modest dollar target (e.g., +30% of a tiny starting balance) to keep focus and avoid revenge trading.
Goal: Hit +20 pips (or your %/dollar target) with clean execution. If you break rules or fail, you go back to the previous day.
Who is it for?
- New or returning traders who need a clear daily boundary.
- Anyone who overtrades, chases, or gives back gains.
- Traders training a specific setup (e.g. trendline break, London session bias).
Core rules
- ✅ Target: +20 pips or your plan’s daily dollar %.
- 🚫 Max trades/day: 3 (adjust if your plan says otherwise).
- 🛑 Daily loss cap: e.g., −20 pips. Hit it → stop immediately.
- 🔒 Complete Day N to unlock Day N+1. Fail a day → go back to Day N−1.
- 📝 Journal every decision (setup, reason, management, lesson).
Setup & sizing
Use tiny size. If you’re tying targets to dollars, keep a plan:
- Starting balance (Day 1): $20
- Daily profit target: +30% (of the day’s start) or +20 pips
- Daily risk cap: 22.5% (of the day’s start) (example)
This is educational content, not financial advice. Trade at your own risk.
Want a printable plan? Use the Excel workbook with compounding rows (Start, Target, Risk, End) and a Tracker sheet.
How to run each day
- Define your session and setup. One or two pairs. One setup. Example: MYT Trendline Indicator + confluence.
- Plan the trade. Entry, SL (in pips), TP (20 pips or plan’s $ target). Position size off SL distance.
- Execute once. No FOMO entries. If invalidated, wait for next valid trigger.
- Manage. Follow your plan’s rules (move to BE, partials, time stop).
- Stop for the day. Hit target → stop. Hit loss cap → stop. Journal either way.
Discipline habits to practice
Do more of
- Wait for A+ setups; skip low-quality noise.
- Size positions from SL distance (not greed).
- Record a micro-journal after each trade.
- Stop after target — protect your state.
Avoid
- Revenge trading after a loss.
- Moving stops arbitrarily.
- Stacking correlated trades just to “get it done”.
- Chasing after target is hit “because it’s moving”.
Example: Day 1 numbers
Day 1 — Target: +$6.00 or +20 pips • Risk: $4.50 • End: $26.00
Based on Start $20, Profit 30%, Risk 22.5%. Your Excel plan shows the full day-by-day progression.
FAQ
What happens if I fail a day?
You go back to the previous day. Consequences reinforce discipline — it’s less about the dollars and more about process control.
Is 20 pips always the best target?
No — it’s a training wheel. Adjust for your pair/volatility, but keep the target modest and consistent.
Do I have to use dollars and percentages?
You can run it purely on pips. The Excel plan gives a dollar view for accountability.
Ready to practice the process?
Start small, follow the rules, journal honestly — and stop when done.