Developing a EURDKK Indicator Based EURDKK System

A EURDKK System refers to a set of EURDKK rules that you follow to manage your EURDKK trades. These EURDKK rules will determine when you open a EURDKK trade & when you'll exit. A EURDKK trade system is created by combining 2 or more indicators.

For example, the Stochastic Oscillator can be combined with other indicators to form a EURDKK system. For this example stochastics can be combined with the indicators below to come up with the following EURDKK system.

• RSI
• MACD
• Moving Averages Technical Indicator

Example

Creating a EURDKK System - EURDKK System Example

So the question is how can one come up with a EURDKK systems that works & how does one write its rules? Follow the steps below:

Seven steps to creating an indicator based EURDKK system

To come up with these set of rules for EURDKK currency pair we use the following seven steps.

1. Choose your EURDKK Time Frame

The first step depends on the number of hours you as a trader want to set a side to EURDKK trading. Whether you prefer sitting in front of the Desktop computer constantly for several hours analyzing short EURDKK time frames OR you prefer setting up your charts using bigger EURDKK time frames once or twice a day. Choosing a charts time-frame will mainly depend on what type of EURDKK currency trader you are.

EURDKK Chart Time Frames in MetaTrader 4 - EURDKK MT4 Chart

While testing out your new EURDKK system you may want to find out about its performance on different EURDKK chart timeframes and then choose the most accurate & profitable EURDKK chart timeframe for you.

2. Select indicators to identify a new trend

The goal of a EURDKK currency trader is to get into the EURDKK trade as early as possible and take maximum advantage of price moves.

One of the common ways to identify a new EURDKK trend as fast as possible is to use MAs Indicator. A simple system is to use a moving average crossover system that will identify a new EURDKK setup opportunity at its earliest stage.

MA Crossover Technique - EURDKK System

EURDKK Sell signal and EURDKK Buy signal Generated by MA Crossover Strategy

3. Choose additional indicators to confirm the EURDKK market trend

Once we find a new EURDKK trend we need to use additional indicators that will confirm the EURDKK entry signals & give either a green light for action or save a trader from fake-outs.

To confirm the signals we use RSI & Stochastic.

RSI & Stochastic Oscillator EURDKK System

4. Finding entry & exit points

Once indicators are chosen so that one indicator gives the signal and another confirms the signal, it is time to enter a EURDKK trade.

A EURDKK trader should enter as soon as a signal is generated and confirmed after a candlestick closes.

Aggressive EURDKK traders enter a transaction immediately without waiting for the current price bar to close.

Other EURDKK traders wait until the current price bar is closed and then enter the transaction if the EURDKK trade setup has not changed and the signal remains valid. This method is more considerate and prevents additional false entries and whipsaws.

Generating EURDKK Signals

Generating EURDKK Trade Signals

For exits, a trader can either set an amount he wants to earn per trade or use technical tools that help to set profit goals like Fibo Expansion Indicator or set a protective stop loss depending on the EURDKK market volatility at any specific time. Alternatively a trader can exit when the technical indicators give an opposite signal.

When opening a new EURDKK trade transaction it's always important to calculate in advance how much you are willing to lose if the EURDKK transaction goes against you. Although the objective is to come up with the best EURDKK system in world, losses are inevitable & therefore being ready to tell where you will give up & cut your losses before starting a EURDKK trade transaction is very important.

5. Calculate risks in each EURDKK trade setup

In you must calculate your risk for each EURDKK trade. Serious EURDKK traders will only enter look to open an order it the risk to reward is 2:1 or more.

If you use a high risk to reward like 2:1, you greatly increase your chances of becoming profitable when trading EURDKK in the long run.

The Risk-Reward Chart below highlights you how:

Forex Money Management Reward Risk Chart - EURDKK Trading

In the first examples of Risk-:-Reward Ratio, you can see that even if your EURDKK system only won 50% of your open EURDKK trades, you would still make a profit of $10,000. Interpret more on this course: Here Money Management Rules and Forex Money Management Methods.

Before opening a new EURDKK trade, a trader should define the point at which he will close the open EURDKK trade if it turns to be a losing one. Some traders use FX Fibonacci Retracement Levels and support & resistance zones. Others just use a pre-determined stop loss to set stop loss order once they have opened a EURDKK trade.

6. Write down the systems EURDKK rules & follow them

A Trade System refers to a set of EURDKK rules that you follow to manage your EURDKK trades.

The keyword is A SET OF EURDKK TRADING RULES which you must follow. If you do not follow the EURDKK currency pair rules then you don't even have a strategy in the first place.

The next systems lesson highlights to you an example of how to utilize the above steps to come up with your own EURDKK online system:

Next Guide: Example of Writing EURDKK Systems Rules

7. Practice on a EURDKK Practice Account

Without enough EURDKK trades, you will not be able to realize the true profitability of your EURDKK system.

Once you have your EURDKK system rules written, it's time to test & improve your EURDKK trade system by using it on a EURDKK demo account.

Open a free demo practice account & trade EURDKK your system to see how well it will respond.

It is strongly recommended to begin with a practice account & practice for at least for 1 or 2 months so as to gain some practice & experience how the EURDKK currency pair works.

Once you start making some decent profit on your EURDKK demo account you then can try opening a live account & begin trading EURDKK currency pair with real money.