Developing Basics Systems That Works - Trade System Example Templates

When making your own Basics Systems, there are a few factors & aspects to keep in mind. Your strategy needs to have the ability to identify new market trends, while the same time making sure you do not to get faked out/whipsaws. The real trick is, once you have develop a trading system which works for you, stick to it. Being disciplined will help you as a trader a lot in becoming successful.

Before FX on a live/real account, you have to figure out what Basics Systems and strategies work for you. It is good to know in what time frame you're going to be working in, and how much you're willing to risk once you begin. All these should be factored in, & should be written within your plan. A good place to test this would be on a free practice demo trading account. This is where you test out your trading strategies risk free without investing money to determine which strategy is best fitted for you.

So, now how can one like you come up with a "good Basics Systems" or "best Basics Systems "?

To come up with a good strategy the first thing to do is to define your main objective or goal:

The following example illustrates and shows a goal & explains the rules of how to achieve that objective for your Basics System.

Goals

1. Identify a new trend

Moving Average(MA) crossover method is the most oftenly strategy used to identify a new trend. Time to open a long or short trade is determined when 2 averages cross over or cross under each other.

2. Confirm the new trend

Relative Strength Index(RSI) and Stochastic Oscillator Indicator are the most oftenly used indicators to confirm a trend.

Indicator-based Basics Strategies

The best type of a method is one that's indicator-based. You'll find it straight forward to generate the signals & thus less error-prone on your part & this will help you as a trader to avoid market whipsaw signals.

There are several things we want to achieve when developing Basic Systems:

Find entry points as early as possible.
Find exit points securing maximum gains.
Avoid fake entry & exit trading signals.
Proper Capital Management Guidelines

Accomplishing these 4 goals will result in a profitable Basics System and a strategy that works.

The last piece of info needed, is deciding how aggressive you're going to be when entering and exiting a trade. Those who more aggressive wouldn't wait until the chart candle closes & 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 stable trading signal when entering the market.

To get profits out of the trading market you as a forex trader need to build your own profitable system; a method that will bring your not just hundreds but thousands of dollars worth of revenues. You need to have your own trading strategy that will help you as a trader achieve your financial goals. Sometimes the best trade systems are the ones which you build on your own. No need to keep looking for the best systems or for systems that work, this web-site provides you with all the trading tools required to help you as a trader and tutorial you on how to come up with your own systems.

Shown Below is exemplification of a Basics Systems based on RSI, MACD & Stochastic.

Creating Indicators Based Strategy - Forex System Example Templates

Forex System - Basics Strategies

The Basics Systems example above is comprised of four indicators in total, all of these generate trade signals using different methods, the Moving Average(MA) will generate trade signals using the crossover method shown, the RSI, Stochastic and MACD use different analysis to generate the long and short signals as is displayed and shown in the above exemplification. How to generate these signals is discussed in the next lesson (on the sidebar navigation learn lessons menu under key concepts).

For beginners that want to create Basics Systems, it is difficult for them to device their own Forex strategies since they do not have a lot of knowledge about the trading market. However, this website will explain how one can create their own free trading system in just seven easy guidelines. Best strategy is one you come up with yourself & learn/train how to trade the market with it.

Main advantage of creating your own free Basics 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 guides menu below the key concepts will show and explain to you how to create a system like that one above, write it's rules & how to back test it on a practice practice demo trading account before using it on live/real account.

4 Explanation Examples of Free Basics Strategies

Examples 1: The MA Moving Average Cross-over Technique - Basics Strategies

The crossover strategy uses two moving averages to generate trading signals. The first Moving Average uses a shorter period & the second is a longer period.

MA Crossover Strategy System - Moving Average Cross-over Strategy Best Strategies

Crossover Method - Basics Strategies

This above method is referred to as the moving average cross over method because signals are derived & generated when 2 averages cross above or below each other.

Short signal Long signal Generated by MA Cross-over Strategy - Creating Basic Forex Strategies

Forex System Example - Short & Long signal Generated - Basics Strategies

A buy trade signal or going long trade gets derived and generated when the shorter average crosses above longer average (Both MAs Going Up).

A sell trading signal or a going short trade gets derived and generated when the shorter average crosses below longer average (Both MAs Moving Averages Heading Down).

Example 2: Stochastics System - Basics Strategies

Stochastic Oscillator Technical can be combined with other indicators to form a system.

RSI
MACD
Moving Averages Indicator

Trading Strategies Example - Basics Strategies

Stochastic RSI & MACD Method System - Creating Basic Forex Strategies - What is Trade System?

Short Signal or Sell Signal - Basics Strategies

How the short signal was generated

From our trading rules the short signal gets derived/generated when:

Both MAs Moving Averages are heading down
RSI is below 50
Stochastic heading downwards
MACD heading downwards below centerline

Short signal was generated/derived when all written rules were met. Exit trading signal gets derived/generated when a signal in the opposite trend direction is generated.

The good thing about using such a method is that we're using different types of indicators to confirm the signals and avoid as many whipsaws as possible in the process.

Stochastic - momentum oscillator
RSI - momentum oscillator
Moving Averages Indicator - trend following indicator
MACD - trend following technical indicator

Based on the chart time frame used this strategy can be used as scalping system when the min charts are used or as a intraday system when hourly trading charts are used.

Example 3: System Example - Basics Strategies

This system is fully described within the trading plan on the plan guide on this web site under the key concepts tutorials located on the right navigating menu.

Chart Time Frame

H1 chart

Trading Indicators which spot a new trend

Moving Average Cross-over

Indicators which confirm the market trend

RSI

STOCHASTIC OSCILLATOR

Long Entry - Buy Signal

1. Both Moving Average(moving averages) pointing upwards

2. RSI above 50

3. Both stochastics oscillator trading indicators heading up

Short Entry - Sell Signal

1. Both Moving Average MA pointing down

2. RSI below 50

3. Both stochastics oscillator indicators moving down

Exit Signal

1. MA gives and generates in the opposite market trend signal

2. RSI generates in the opposite trend signal

Funds Management in FX Trading

StopLoss - 35 pips

Take Profit Order - 70 pips

Reward to Risk 2:1

Example 4: New Gann Swing Chartist Trading Plan - Basics Strategies

The Gann Swing Oscillator Indicator is meant to be used in combination together with the Gann HiLo Activator & Gann Trend to form a complete trading strategy commonly known as the - 'New Gann Swing Chartist Trading Plan'. Within this technique/methodology the Gann Swing Oscillator Technical is used to help identify market swings for trading only within the ruling market trend is shown by Gann Trend.

Displayed Below is illustrations of New Gann Swing Chartist Trading Plan

New Gann Swing Chartist Trading Plan - Example Strategy - Forex System Example Templates

The Gann Chartist Plan - Basics Strategies

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