Developing Basics Systems That Works

When making your own Basics Trade Systems, there are a couple of factors and aspects to keep in mind. Your trading strategy needs to be able to spot new Indices trends, while at the same time making sure you don't to get faked out/whipsaw signals. The real trick is, once you have come up with a indices trading system which works for you, stick to it. Being disciplined will help you as a trader a lot in becoming successful.

Before Indices on a live account, you have to figure out what Basics Systems & strategies work for you. It's good to know in what time frame you're going to be working in, and how much you're willing to risk once you begin. All these should be factored in, and should be written within your indices trading plan. A good place to test this would be on a free practice trading account. This is where you test out your trading strategies risk free without investing money to identify which trading strategy is best fitted for you.

So, now how can a trader like you come up with a "good Basics Systems" or "best Basics Trade Systems "?

To create a good trading strategy the first thing to carry out is to define your main objective or goal:

The following example illustrates a goal and explains the rules of how to achieve that objective for your Basics System.

Index Goals

1.Identify a new indices trend

Moving average crossover method is the most oftenly strategy used to identify a new trend. The time to open a long or short trade is decided when 2 averages cross over or cross under each other.

2.Confirm the new indices trend

Relative Strength Index(RSI) and Stochastic Trading Indicator are the most oftenly used indicators to confirm a Indices trend.

Indicator-based Basics Trading Strategies

The best type of a trading method is one that is indicator-based. You will find it straight forward to generate the trading signals and thus less error-prone on your part and this will help you as a trader to avoid market whipsaw signals.

There are several things we want to achieve when creating Basics Trade Systems :

Find entry points as early as possible.
Find exit points securing maximum gains.
Avoid fake entry & exit trading signals.
Proper Index Funds Management Rules

Accomplishing these 4 goals will result in a profitable Basics System & a strategy which works.

The last piece of information needed, is deciding how aggressive you're going to be when entering and exiting and getting out of a trade. Those who more aggressive wouldn't wait until the chart candle closes & would enter as soon as their trading indicators match up. But most would wait until the chart candle of the time-frame they are using has closed, to have more stable signal when entering the stock trading market.

To get profits out of the stock trading market you as a trader need to build your own profitable trading system; a method that will bring your not just hundreds but thousands of dollars worth of revenues. You need to have your own trading strategy which will help you as a trader achieve your financial goals. Sometimes the best trade systems are the ones which you build on your own. No need for you to keep searching for best indices trading systems or for indices trading systems that work, this web site provides you with all the trading tools required to help you as a trader & tutorial you on how to create your own trading systems.

Displayed Below is illustration of a Basics Systems based on RSI, MACD & Stochastic.

Creating Indicators Based System - Trade System Example Templates - No Nonsense Indicators List

Index System - Basics Trading Strategies

The Basics Systems example above is comprised of four indicators in total, all of these generate trade signals using various different techniques, the Moving Average will generate trade signals using the crossover method shown, the RSI, Stochastic and MACD use various different analysis to generate the long & short signals just as displayed and shown in the above exemplification. How to generate these signals is discussed in the next lesson (on the sidebar navigation learn tutorials menu under key concepts).

For beginners that want to create Basics Trade Systems, it is difficult for them to device their own strategies since they do not have a lot of knowledge about the stock trading market. However, this web site will explain how one can create their own free trading system in just seven easy guidelines. Best strategy is one you come up with yourself and learn how to trade the stock trading market with it.

Main advantage of creating your own free Basics Systems is that you'll know how to make profits by yourself-and not rely on other peoples efforts.

In the next lesson located on the sidebar navigation learn tutorials menu below the key concepts will explain to you how to create a indices trading system like that one above, write it's rules and how to backtest it on a demo stocks account before using it on live stock account.

4 Example Illustrations of Free Basics Trading Strategies

Example 1: The MA Moving Average Cross-over Technique - Basics Trading Strategies

The crossover strategy uses 2 moving averages to generate trade signals. The first Moving Average uses a shorter period & the second is a longer period.

MA Crossover Strategy - Creating Basics Index Systems That Works

Crossover Technique - Basics Trading Strategies

This above technique is referred to as the moving average cross over technique because trading signals are derived & generated when 2 averages cross above/below each other.

Creating Basics Strategies That Works - System Example Templates

Indices System Example - Short & Long signal Generated - Basics Trading Strategies

A buy signal or going long trade is derived/generated when the shorter average crosses above longer average (Both MAs Going and Heading Upward).

A sell stock signal or a going short trade gets derived and generated when the shorter average crosses below the longer average (Both MAs Going Down).

Example 2: Stochastics System

Stochastic Oscillator Technical can be combined with other indicators to form a trade strategy.

RSI
MACD
MAs Moving Averages Trading Indicator

Trading Strategies Example - Basics Trading Strategies

Stochastic RSI & MACD Method System - Creating Basics Index Strategies That Works

Short Signal or Sell Signal - Basics Trading Strategies

How the short signal was generated

From our guidelines the short signal is derived/generated when:

Both MAs are moving down
RSI is below 50
Stochastic heading downward
MACD moving downwards below centerline

Short signal was generated/derived when all the written trading rules were met. The exit trading signal is generated when a trading signal in the in the opposite trend trend trend trend trend trend trend direction is generated.

The good thing about using such a technique is that we're using different types of indicators to confirm the signals & avoid as many whipsaw signals as possible in the process.

Stochastic - momentum oscillator
RSI - momentum oscillator trading indicator
MAs -trend following indicator
MACD -trend following oscillator

Based on the chart time frame used this strategy can be used as scalping system when the min charts are used or as a Stock Index day trading system when hourly trading charts are used.

Example 3: System Example

This trading system is fully elaborated within the trade plan on the indices plan lesson on this web site under the key concepts tutorials located on the right navigating menu.

Chart Time-Frame

1 H chart

Indicators that spot a new trend

Moving Average Cross-over

Indicators which confirm the market trend

RSI

STOCHASTIC OSCILLATOR

Long Entry - Buy Signal

1. Both MA Moving Average(moving averages) pointing upward

2. RSI above 50

3. Both stochastic oscillators trading indicators moving up

Short Entry - Sell Trade Signal

1. Both MA pointing down

2. RSI below 50

3. Both stochastic oscillators indicators moving down

Exit Signal

1. Moving Average gives and generates in the in the opposite trend trend trend trend trend trend trading signal

2. RSI generates in the in the opposite trend trend trend trend trend trend trend signal

Equity Management in Indices Trade

Stop Loss Order - 35 pips

Take Profit Indices Order - 70 pips

Reward : Risk 2:1

Example 4: New Gann Swing Chartist Trading Plan

The Gann Swing Oscillator Technical Indicator is meant to be used in combination together with the Gann HiLo Activator and Gann Trend to develop a complete trading strategy commonly known as the - 'New Gann Swing Chartist Trading Plan'. Within this technique the Gann Swing Oscillator Technical is used to help figure out market swings for trading only within the current market indices trend is displayed by Gann Trend.

Shown Below is illustrations of New Gann Swing Chartist Trading Plan

Creating Basics Stock Systems That Works

Gann Chartist Plan - Basics Trading Strategies

Learn More Courses & Tutorials:

Trade Stock Indices