Trade Forex Trading

XAUUSD Trading System Guidelines: Write The Rules and Follow Them

Follow the earlier steps to build a system. Note down rules that create signals on the 1-hour chart. Use the 1H chart to define the strategy rules.

A trading system consists of a written set of rules designed to guide trade management. These rules should be documented clearly for easy reference and understanding. This tutorial provides guidance on how to properly outline and write down your system's trade rules.

A gold trading system needs a set of rules to follow. Without them in your plan, it is not a true system.

Explanation of a Trading System below:

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Writing Down Guidelines of a System - 1 hour Timeframe Trading

You can create the above system using the steps outlined:

Step 1:

Select your Time-frame - 1H chart

Step 2:

Select Technical Indicators capable of signaling the emergence of a fresh trend - such as a Moving Average Crossover System.

Step 3:

Pick technical indicators that confirm the trend - things like RSI or Stochastic.

Step 4:

Spotting entry and exit points

Long Entry

  1. Both Moving Average MA pointing up
  2. RSI value above 50
  3. Stochastic oscillator technical indicator going up

Short Entry

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

Exit

  1. Moving Average gives and generates in the opposite market trend signal
  2. RSI gives in the opposite market trend signal
Step 5:

Calculating risks in each trade transaction - 20 pips

Step 6:

Formalizing the Operational Rules for the XAUUSD Trading System

Step 7:

Test the trade system on a practice demo account

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

Writing System XAUUSD Rules

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Example of How to Write Down the Best System Rules

This plan shows the trade signals just as they appear below. Traders can use these rules to decide when to get into and out of trades.

Writing System Rules and Tips of How to Optimize Them for Your Gold Method

Generate Buy & Sell Signals using Written Down System Guidelines

We have completed writing the trade rules, if you're researching on how to create the best trading system, this learn tutorial is a good start to guide you on how to do just that. This is one part of a xauusd trading plan. Now how do you create a complete xauusd gold 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 subject.

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