XAUUSD System Rules: Write Down The Rules and Follow Them

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

A system refers to a written set of written rules which you follow to manage your trade transactions. These rules must be written down so that to lesson you. The following learn tutorial will show you how to writedown the rules of your system.

The keyword is SET OF RULES that you must follow. If you don't follow the rules then you don't have a gold trading system. Trading systems must have guide-lines which are written down within your plan.

Example of System below:

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Writing Down Rules of a System- 1 hour Time Frame Trading

You can create the above system using the steps below:

Step 1:

Select your Time-frame - 1 hour chart

Step 2:

Choose Technical Indicators which identify a new trend - Moving Average Crossover System.

Step 3:

Select Technical Indicators which confirm the trend - RSI, Stochastic

Step 4:

Finding entry & exit points
Long Entry
Both MA pointing up
RSI above 50
Stochastic oscillator technical indicator going up
Short Entry
Both Moving Average pointing down
RSI below 50
Stochastic oscillator technical going down
Exit
Moving Average gives opposite signal
RSI gives opposite signal

Step 5:

Calculating risks in each trade transaction - 20 pips

Step 6:

Write down the trade system XAUUSD rules

Step 7:

Test the system on a practice account

After using the steps we create a written system rules below.

Writing System XAUUSD Rules

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Example of How to Write the Best System Rules

This system produces the signals as illustrated below. Using these rules traders can determine when to enter & exit trades.

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Generate Buy & Sell Signals using Written System Rules

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

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XAUUSD System Rules: Write Down The Rules and Follow Them

Example of System below:

Long Entry

Short Entry

Exit

Writing System XAUUSD Rules