Trade Forex Trading

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 1H chart. We shall use the 1 H chart to write the trade rules of this strategy - system.

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

The keyword is SET OF RULES that you as a Gold trader must follow. If you do not 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.

Explanation of a Trading System below:

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Writing Down Rules of a System- 1 hour Timeframe Trading

You can create the above trading system using the steps outlined below:

Step 1:

Select your Time-frame - 1H 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

  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 in the opposite market trend market trend trend market trend trend market trend trend signal
  2. RSI gives in the in the opposite trend market trend trend market trend trend market trend trend signal
Step 5:

Calculating risks in each trade transaction - 20 pips

Step 6:

Write down the trade system XAUUSD rules

Step 7:

Test the trade 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 trade signals just as is illustrated and shown below. Using these trade rules, traders can determine and assess when to enter & exit trades.

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

Generate Buy & Sell Signals using Written System Rules

We have completed writing the trade rules, if you are 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 trading plan? To read about XAUUSD plan lesson go to the right navigating menu of this website under XAUUSD key concepts where you as a trader can find a link for this trade plan topic.

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