Example Templates

When creating your own indices system, there are a few things to keep in mind. Your indices strategy needs to be able to identify new Indices market trends, while at the same time making sure you do not to get faked out/whipsaws. The real trick is, once you've created a trading system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in stock indices trading.

Before trading Indices on a live trading account, you've to figure-out what trading strategy works for you. It's good to know in what chart timeframe you are going to be working in, & how much you're willing to risk once you start indices trading online. All these factors should be factored in, & should be written down within your indices trading plan. A good place to test this indices trading plan would be on a free demo trading account. This is where you test your strategies risk free without investing money to determine which trading strategy is best suited for you.

So, now how can a trader like you create a "good trading system" or the "best trading system"?

To come up with a good trading strategy the first thing to do is to define your objective or goal:

The following examples illustrates a goal and explains the guidelines of how to achieve that goal

Stock Indices Trading Goals

1.Identify a new trend

Moving average crossover method trading strategy is most oftenly used strategy to identify a new trend. Time to open a long or short trade is determined when 2 moving averages indicators cross over or cross under each other.

2.Confirm the new trend

Relative Strength Index(RSI) Indicator & Stochastic Oscillator Indicator are the most commonly used technical indicators to confirm a Indices trend.

Indicator based Trading System

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

There are several things we want to achieve when creating a Stock Indices trading system:

1. Find entry points as early as possible.
2. Find exit points securing maximum gains.
3. Avoid fake entry & exit signals.
4. Proper Indices Money Management Guidelines

Finishing these four goals will result in a profitable indices strategy that works.

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

To get profits out of the trading market you need to build your own profitable trading system: a trading technique that will generate profitable signals. You need to have your own strategy which will help you achieve your financial goals. Sometimes the best trading systems are the ones that you build on your own. No need to keep searching online for best trading systems or for trading systems which work, this web site provides you with all the trading tools required to help you and guide you on how to create your own trading systems.

Shown Below is an example of a Indices trade system based on RSI, MACD & Stochastic.

Indices System - Best MT4 Examples Trading Strategies

The trading system example above is comprised of four technical indicators in total, all of these generate Indices trade signals using different techniques, the moving average will generate signals using the moving average crossover method shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long & short signals as pictured in the above example. How to generate these Indices signals is discussed in next topic (on sidebar navigation learn trading tutorials menu under key concepts).

For new traders, it's difficult for them to create their own trading strategies since they do not have a lot of knowledge about the trading market. However, this learn indices website will explain how a beginner trader can create their own free trading system in just seven easy steps. The best strategy is the one you come up with yourself & learn how to trade the trading market with it.

The main advantage of creating your own free indices systems is that you will know how to make profits by yourself - & not rely on other peoples efforts.

In the next indices trading course located at the sidebar navigation learn lessons menu below the indices trading key concepts will show you how to create a trading system like the one above, write it's indices trading rules & how to back test the system on a practice practice trading account before using it on a live trading account.

4 Examples of Free Stock Indices Trading Strategies

Example 1: The MA Crossover Strategy

The moving average indicator cross over method uses two moving averages to generate Indices signals. First Moving average uses a shorter period & the second is a longer period.

MA Crossover Technique - MA Crossover Strategy

This above trading method is referred to as the moving average crossover method because stock index signals get generated when 2 averages cross above or below each other.

Trading System Trading Example Template - Short and Long signal Generated by Trading System

A buy signal or going long trade is generated when the shorter moving average indicator crosses above 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 longer moving average indicator (Both Moving Averages Moving Down).

Example 2: Stochastics Indices Trading System

Stochastic Oscillator technical indicator can be combined with other trading indicators to form a trading system.

• RSI indicator
• MACD indicator
• Moving Averages indicators

Trading Strategies Examples - Best MetaTrader 4 Templates Example Systems

Short Signal or Sell Trading Signal

How the short sell Stock Indices signal was generated

From our trading guide-lines the short signal is generated when:

1. Both Moving Averages are heading down
2. RSI is below 50
3. Stochastic moving downward
4. MACD heading downwards below centerline

The short signal was generated when all the written indices rules were met. The exit signal is generated when a signal in opposite trade direction is generated.

Good thing about using such a trading method is that we are using different types of indicators to confirm the signals & avoid as many whipsaws as possible in process.

• Stochastic -indices momentum indicator
• RSI -indices momentum indicator
• Moving Averages -trend following indicator
• MACD -trend following oscillator

Based on the chart timeframe used - this strategy can be used as Indices scalping system when the minute charts are used or as a Indices day indices system when hourly charts are used.

Example 3: Trading System Indices Example

This system is fully described within the trade plan on the indices trading plan tutorial on this learn indices website under the key concepts section located on the right navigation menu.

Chart Time Frame

1 H chart

Trading Indicators that spot a new trend

MA Crossover Trading Indicators Strategy

Trading Indicators which confirm the trend

RSI indicator

STOCHASTIC OSCILLATOR trading indicator

Long Entry - Buy Signal

1. Both MA(moving averages) pointing up

2. RSI above 50

3. Both stochastics going up

Short Entry - Sell Signal

1. Both MA pointing down

2. RSI below 50

3. Both stochastics going down

Exit Signal

1. Moving Average Trading Indicator gives opposite signal

2. RSI gives opposite signal

Risk Management in Stock Indices Trading

Stop Loss - 35 pips

Take Profit Indices Order - 70 pips

Reward to Risk 2:1

Example 4: New Gann Swing Indices Trading Chartist Plan

The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator and Gann Trend to form a complete strategy commonly referred to as the - "New Gann Swing Chartist Plan". Within this methodology the Gann Swing Oscillator is used to help determine market swings for trading only within the current market trend is shown by the Gann Trend.

Shown Below is examples of New Gann Swing Chartist Plan

Gann Chartist Plan - Indices Systems - MT4 Template Trading System