Trading System Example Templates
When creating your own Basics Commodity Systems, there are a few things to keep in mind. Your trading strategy needs to be able to identify new Commodity Trading market trends, while at same time making sure you don't to get faked out/whipsaws. The real trick is, once you've created a commodity system that works for you, stick to it. Being disciplined will help you a lot in becoming successful.
Before trading Commodity on a live commodity trading account, you've to figure out what Basics Commodity Trading Systems and strategies work for you. It is good to know in what time frame you are going to be working in, and how much you are willing to risk once you begin. All these factors should be factored in, and should be written down within your commodity trading plan. A good place to test this would be on a free demo trading account. This is where you test your strategies risk-free without investing money to determine which strategy is best suited for you.
So, now how can a trader like you create a "good Basics Commodity Trading Systems" or "best Basics Commodity Trading Systems "?
To come up with a good trading strategy the first thing to do is to define your aim or goal:
The following examples illustrates a goal and explains the rules of how to achieve that goal for your Basics Commodity Trading System.
Commodities Trading Goals
1.Identify a new commodity trend
Moving average crossover method is the most commonly strategy used to identify a new trend. Time to open a long or short trade is determined when two averages cross over or cross under each other.
2.Confirm the new commodity trend
RSI(RSI) and Stochastic Oscillator Indicator are the most commonly used indicators to confirm a Commodity Trading trend.
Indicator-based Basics Commodity Trading Systems
The best type of a 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 and this will help you to avoid market whipsaws.
There are several things we want to achieve when creating Basics Commodity Trading Systems :
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry & exit signals.
- Proper Commodities Money Management Tutorials
Finishing these 4 goals will result in a profitable Basics Commodity System and a strategy that works.
The last piece of information needed, is deciding how aggressive you're going to be when entering & exiting a trade. Those who more aggressive wouldn't wait until the chart candle-stick closes and would enter as soon as their indicators match up. But most would wait until the chart candlestick of the time-frame they are using has closed, to have more stability when entering a the commodities trading market.
To get huge profits out of the commodities trading market you 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 strategy that 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 the best trading systems or for commodity systems that work, this website provides you with all the tools required to help you & guide you on how to create your own commodity trading systems.
Below is an example of a Basics Commodity Systems based on RSI, MACD and Stochastic.
Commodity System - Basics Commodity Trading Systems
The Basics Commodity Trading Systems example above is comprised of four technical indicators in total, all of these generate Commodity trade signals using different methods, the moving average will generate signals using the crossover method shown, the RSI, Stochastic and MACD use different analysis to generate the long and short signals as shown in the above example. How to generate these trading signals is discussed in next topic (on sidebar navigation study trading tutorials menu under key concepts).
For beginner traders who want to come up with Basics Commodity Systems , it is difficult for them to device their own commodity trading strategies since they do not have a lot of knowledge about the commodities trading market. However, this site will explain how trader can create their own free commodity trading system in just seven easy steps. The best strategy is one you create yourself & learn how to trade the commodities trading market with it.
The main advantage of creating your own free Basics Commodity Systems is that you will know how to make profits by yourself-and not rely on other peoples efforts.
In the next lesson located at the sidebar navigation learn trading courses menu below the key concepts will show you how to create a commodity trading system like the one above, write it's rules and how to back test it on a practice practice commodities trading account before using it on a live commodities trading account.
4 Examples of Free Basics Commodity Trading Systems
Examples 1: The Moving Average Crossover Method - Basics Commodity Trading Systems
The cross over method uses two moving averages to generate commodity trading signals. First Moving Average uses a shorter period & the second is a longer period.
Crossover Technique - Basics Commodity Trading Systems
This above method is referred to as the moving average cross over method because signals are generated when two averages cross above or below each other.
Commodity Trading System Trading Example - Short and Long signal Generated - Basics Commodity Trading Systems
A buy signal or going long trade is generated when the shorter average crosses above the longer average (Both Moving Averages Going Up).
A sell signal or a going short trade is generated when the shorter average crosses below the longer average (Both Moving Averages Going Down).
Basics Commodity Trading Systems
Stochastic Oscillator can be combined with other Commodity technical indicators to form a system.
- RSI
- MACD
- Moving Averages Commodities Trading Technical Indicator
Trading Systems Commodity Trading Example - Basics Commodity Trading Systems
Short Signal or Sell Commodity Signal - Basics Commodity Trading Systems
How the short signal was generated
From our rules the short trading signal is generated when:
- Both Moving Averages are heading down
- RSI is below 50
- Stochastic moving downward
- MACD heading downward below centerline
Short signal was generated when all the written rules were met. Exit trading signal is generated when a trading signal in opposite direction is generated.
The good thing about using such a method is that we are using different types of indicators to confirm the signals and avoid as many whip saws as possible in process.
- Stochastic - momentum oscillator
- RSI - momentum oscillator
- Moving Averages Commodity TradingTechnical Indicator - commodity trend following indicator
- MACD - commodity trend following oscillator
Based on the chart time frame used this strategy can be used as Commodity scalping system when the minute trading charts are used or as a Commodity Trading day commodity system when hourly charts are used.
Basics Commodities Trading Systems
This trading system is fully explained within the commodity trading plan on the commodity trading plan tutorial on this website under the Commodity Trading key concepts section located on the right navigation menu.
Commodity Trading Chart Timeframe
1H chart
Indicators that identify a new trend
Moving Average Crossover
Indicators which confirm the trend
RSI
STOCHASTIC OSCILLATOR
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 Moving Average pointing down
2. RSI below 50
3. Both stochastics going down
Exit Signal
1. Moving Average gives opposite signal
2. RSI gives opposite signal
Risk Management in Commodity Trading
Stop loss- 35 pips
Take Profit Commodity Order - 70 pips
Reward to Risk 2:1
Basics Commodity Trading Systems
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator & Gann Trend to form a complete commodity strategy oftenly 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 commodity trend is illustrated by the Gann Trend.
Below is example of the New Gann Swing Chartist Plan
The Gann Chartist Plan - Basics Commodity Trading Systems
