Commodity Trading System Rules: Write Down The Rules & Follow Them

We shall use the previous steps to create a written commodity trading system that generates the trade signals displayed below using the 1 hour commodities trading chart. We shall use the 1H commodity chart to write the rules of this commodity trading strategy - commodities trading system.

A commodity trading system refers to a set of written commodity rules that you follow to manage your trades. These rules must be written down so as to guide you. The following tutorial will show you how to writedown the rules of your trading system.

Keyword is a SET OF RULES which you must follow. If you don't follow the rules then you don't have a commodities trading system. Trading systems must have rules which are written down within your commodity trading plan.

Example of Commodity Trading System below:

Writing Rules of a Commodity Trading System- 1 hour Commodity Trading Chart Time frame Trading

You can come up with the above commodity system using the steps below:

Choose your Chart Timeframe - 1H commodity trading chart

Choose Technical Indicators that spot a new trend - Moving Average Crossover System.

Choose Technical Indicators that confirm the commodity trend - RSI, Stochastic

Finding entry & exit points

Long Entry

1. Both Moving Average pointing up
2. RSI above 50
3. Stochastic oscillator going up

Short Entry

1. Both Moving Average pointing down
2. RSI below 50
3. Stochastic oscillator going down

Exit

1. MA gives opposite signal
2. RSI gives opposite signal

Calculating risks in each trade - 20 pips

Write down the commodity trade system Commodity Trading rules

Test the system on a commodities trading practice trading account

After using these steps we create written commodity system rules below.

Writing Commodity Trading System Commodity Trading Rules

Example of How to Write The Best Commodity Trading System Rules

This trading system produces the signals as shown below. Using these rules traders can determine when to enter and exit trades.

Generate Buy & Sell Commodity Trading Signals using Written System Rules

We have completed writing the rules, if you are researching on how to create the best commodity system, this tutorial is a good start to guide you on how to do just that. This is one part of a the commodity trading plan. Now how do you create a complete commodity trading plan? To read about Commodity Trading plan tutorial go to the right navigation menu of this website under Commodity Trading key concepts where you can find a link for this Commodity trade plan topic.