Trading System Rules: Write Down The Rules and Follow Them

We shall use the 1 hour chart to write the rules of this strategy - trading system.

A system refers to written set of written rules that you follow to manage your trades. These rules must be written so as to guide you. The following learn trading course will explain to you how to write the trade rules of your system.

The keyword is a SET OF Index Trade RULES which you as a Stock Index trader must follow. If you don't follow the trade rules then you do--notdon't have a system. Index systems must have rules which are written down within your plan.

Explanation of System below:

Trade System Rules: Write Down The Trading Rules & Follow Them - Index Trade Strategy Guide Tutorial

Writing Down Rules of a Index System - 1 hour Trading Chart Timeframe

You can create the above trading system using the steps outlined below:

Step 1:

Choose your Chart Time-frame - 1 hour chart

Step 2:

Choose Indicators which identify a new trend - Moving Average(MA) Cross-over System.

Step 3:

Select Indicators which confirm the trend - RSI, Stochastic

Step 4:

Finding entry and exit points

Long Entry

Both Moving Average pointing up
RSI above 50
Stochastic oscillator going up

Short Entry

Both Moving Average pointing down
RSI is below 50
Stochastic oscillator going down

Exit

MA generates in the opposite trend signal
RSI generates in the opposite market trend signal

Step 5:

Calculating risks in each trade - 20 pips

Step 6:

Write down the trading system Index rules

Step 7:

Test the trading system on a practice demo account

After using the steps we create and make written trading system rules below.

Writing System Rules

Example of How Do You Write the Best System Rules

This system produces the trade signals like illustrated and shown below. Using these rules, traders can determine and assess when to enter and exit Index trades.

Trade Strategy Rules: Write Down The Trading Rules & Follow Them - Trade System Tutorial

Generate Buy & Sell Trading Signals using Written Stock Index System Rules

We have completed writing the trade rules, if you are researching on how to create the best Stock system, this learn trading tutorial is a good begin and start to guide you on how to do and carry out just that. This is one part of a plan. Now how do you create a complete Stock Index plan? To read about Forex plan tutorial go to the right navigation menu of this website under Indices key concepts where you as a stock indices trader can find a link for this trade plan topic.

More Topics and Tutorials:

Trade Stock Indices