Indices Trading System Rules: Write Down The Rules and Follow Them
We shall use the previous steps to come up with a written indices trading system that generates the trade signals shown below using the 1 hour stock indices trading chart. We shall use the 1 hour stock indices chart to write the rules of this indices trading strategy - stock indices trading system.
A indices trading system refers to a set of written indices trading rules that you follow to manage your trades. These rules must be written down so as to guide you. The following learn indices trading tutorial will show you how to write the rules of your stock indices trading system.
The keyword is a SET OF Indices Trading RULES which you must follow. If you don't follow the indices trading rules then you don't have a stock indices trading system. Indices trading systems must have rules which are written down within your indices trading plan.
Example of Indices Trading System below:
Writing Rules of a Indices Trading System- 1 hour Indices Trading Chart Time frame Trading
You can come up with the above indices trading system using the steps below:
Choose your Chart Time Frame - 1 hour indices chart
Choose Indicators that identify a new trend - Moving Average Crossover System.
Finding entry and exit points
- Both MA pointing up
- RSI above 50
- Stochastic oscillator going up
- Both MA pointing down
- RSI below 50
- Stochastic oscillator going down
- MA gives opposite signal
- RSI gives opposite signal
Calculating risks in each trade - 20 pips
After using these steps we come up with the written indices trading system rules below.
Writing Indices Trading System Indices Rules
Example of How to Write the Best Indices Trading System Rules
This indices trading system produces the trading signals as shown below. Using these indices trading rules traders can determine when to enter and exit stock indices trades.
Generate Buy and Sell Indices Trading Signals using Written Indices Trading System Rules
We have completed writing the indices trading rules, if you are researching on how to create the best indices trading system, this learn indices trading tutorial is a good start to guide you on how to do just that. This is one part of a the indices trading plan. Now how do you create a complete indices trading plan? To read about Indices plan tutorial go to the right navigation menu of this website under Indices key concepts where you can find a link for this Indices trade plan topic.