Creating a Indices Trading System That Works - 4 Example Templates - Best MT4 Templates Indices Systems
When creating your own Indices trading system, there are a few things to keep in mind. Your indices trading strategy needs to be able to spot new Indices trading market trends, while at the same time making sure you do not to get faked out/whipsaws. The real trick is, once you have created a Indices trading system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in indices trading.
Before trading Indices on a live Indices trading account, you have to figure out what indices trading strategy works for you. It is good to know in what indices chart time frame you are going to be working in, and how much you are willing to risk once you begin indices trading online. All these factors should be factored in, and should be written down within your Indices trading plan. A good place to test this trading plan would be on a free demo practice account. This is where you test your indices trading strategies risk free without investing money to determine which indices trading strategy is best suited for you.
So, now how can a trader like you come up with a "good indices system" or the "best Indices trading system"?
To come up with a good indices trading strategy the first thing to do is to define your objective or goal:
The following example illustrates a goal and explains the trading rules of how to achieve that goal
Goals - Stock Indices Trading System Goals
1. Identify a new trend
Moving average crossover method indices trading strategy is the most commonly used strategy to identify a new trend. The time to open a long or short trade is determined when two moving averages indicators cross over or cross under each other.
2. Confirm the new trend
Relative Strength Index(RSI) Indices Trading Indicator and Stochastic Oscillator Indicator are the most commonly used indices indicators to confirm a Indices trend.
Indicator based Indices System
The best type of a indices trading method is one that is indicator-based. You will find it straightforward to generate the indices trading signals and thus less error-prone on your part and this will help you to avoid indices trading market whipsaws.
There are several things we want to achieve when creating a indices system:
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry and exit signals.
- Proper Indices Trading Money Management Rules
Accomplishing these four goals will result in aprofitable Indices trading strategy that works.
The last piece of information needed, is deciding how aggressive you are going to be when entering and exiting a trade. Those traders who are more aggressive wouldn't wait until the indices chart candlestick closes and would enter as soon as their indices indicators match up. But most traders would wait until the indices trading chart candlestick of the chart time frame they are using has closed, to have more stability when entering a the indices market.
To get profits out of the indices market you need to build your own profitable indices system; a trading method that will generate profitable indices trading signals. You need to have your own indices trading strategy that will help you achieve your financial goals. Sometimes the best Indices trading systems are the ones that you build on your own. No need to keep searching online for the best Indices trading systems or for Indices trading systems that work, this website provides you with all the indices trading tools required to help you and guide you on how to come up with your own Indices trading systems.
Below is an example of a Indices trade system based on RSI, MACD and Stochastic.
Indices Trading System - Best MT4 Templates Indices Systems
The indices trading system example above is comprised of four indices trading technical indicators in total, all of these generate Indices trade signals using different methods, the moving average will generate indices trading signals using the moving average crossover method shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long and short signals as shown in the above example. How to generate these Indices signals is discussed in the next topic (on the sidebar navigation menu under key concepts).
For beginner traders, it is difficult for the m to create their own Indices trading strategies since they do not have much knowledge about the Indices trading market. However, this learn indices trading website will explain how a beginner trader can create their own free Indices trading system in just seven easy steps. The best strategy is the one you come up with yourself and learn how to trade the indices market with it.
The main advantage of creating your own free Indices trading systems is that you will know how to make profits by yourself - and not rely on other peoples efforts.
In the next indices trading lesson located at the sidebar navigation menu below the indices trading key concepts will show you how to create a indices system like the one above, write it's indices trading rules and how to back test the indices trading system on a practice demo account before using it on a live Indices trading account.
4 Examples of Free Indices Trading Systems - Best MT4 Templates Indices Systems
Example 1: The Moving Average Crossover Method - Stock Indices Trading Strategy
The moving average indicator cross over method uses two moving averages to generate Indices signals. The first Moving average uses a shorter period and the second is a longer period.
Moving Average Crossover Method - Moving Average Crossover Strategy
This above indices trading method is referred to as the moving average crossover method because indices trading signals are generated when the two averages cross above or below each other.
Indices Trading System Trading Example - Short and Long signal Generated by Indices System
A buy signal or going long trade is generated when the shorter moving average indicator crosses above the longer moving average indicator (Both Moving Averages Going Up).
A sell signal or a going short trade is generated when the shorter average indicator crosses below the longer moving average indicator (Both Moving Averages Going Down).
Example 2: Stochastics Indices Trading System - Best MT4 Templates Indices Systems
Stochastic Oscillator indicator can be combined with other Indices indicators to form a indices system.
- RSI indicator
- MACD indicator
- Moving Averages indicators
Trading Systems Indices Example - Best MT4 Templates Indices Systems
Short Signal or Sell Signal
How the short sell signal was generated
From our indices trading rules the short signal is generated when:
- Both Moving Averages are heading down
- RSI is below 50
- Stochastic heading downwards
- MACD heading downwards below center-line
The short signal was generated when all the written indices trading rules were met. The exit signal is generated when a trading signal in the opposite direction is generated.
The good thing about using such a indices trading method is that we are using different types of indices trading technical indicators to confirm the indices trading signals and avoid as many indices trading whipsaws as possible in the process.
- Stochastic - indices trading momentum oscillator indicator
- RSI - indices trading momentum oscillator indicator
- Moving Averages - trend following indicator
- MACD - trend following oscillator
Based on the chart time frame used - this strategy can be used as Indices scalping system when the minute indices charts are used or as a Indices day indices trading system when hourly indices charts are used.
Example 3: Trading System Indices Example
This indices trading system is fully explained within the Indices trading plan on the Indices trading plan tutorial on this learn indices trading website under the Indices key concepts section located on the right navigation menu.
Indices Trading Chart Time frame
1 hour indices trading chart
Indicators that identify a new trend
Moving Average Crossover Indicators Strategy
Indicators that confirm the trend
STOCHASTIC OSCILLATOR indicator
1. Both MA(moving averages) pointing up
2. RSI above 50
3. Both stochastics going up
1. Both MA pointing down
2. RSI below 50
3. Both stochastics going down
1. MA Indicator gives opposite signal
2. RSI gives opposite signal
Stop loss- 35 pips
Take Profit- 70 pips
Reward to Risk 2:1
Example 4: New Gann Swing Chartist Plan - Best MT4 Templates Indices Systems
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator and Gann Trend to form a complete Indices strategy commonly referred to as the - "New Gann Swing Chartist Plan". Within this methodology the Gann Swing Oscillator is used to help determine indices trading market swings for trading only within the current market trend is shown by the Gann Trend.
Below is the example of the New Gann Swing Chartist Plan
The Gann Chartist Plan - Stock Indices Trading Systems - MT4 Template Indices System