Making a EURRUB Indicator Based EURRUB System

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

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

• RSI
• MACD
• MAs Forex Indicator

Example

Creating a EURRUB System - EURRUB System Example

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

Seven steps to creating an indicator based EURRUB system

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

1. Choose your EURRUB Time Frame

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

EURRUB Chart Time Frames on MT4 - EURRUB MT4 Chart

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

2. Select indicators to identify a new trend

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

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

MA Crossover Technique - EURRUB Trading System

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

3. Choose additional indicators to confirm the EURRUB market trend

Once we find a new EURRUB trend we need to use additional indicators that will confirm the EURRUB 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 EURRUB 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 EURRUB trade.

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

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

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

Generating EURRUB Signals

Generating EURRUB 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 EURRUB market volatility at any one particular time. Alternatively a trader can exit when the technical indicators give an opposite signal.

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

5. Calculate risks in each EURRUB trading setup

In Forex you must calculate your risk for each EURRUB trade. Serious EURRUB 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 EURRUB in the long run.

The Risk-Reward Chart below highlights you how:

Forex Money Management Reward Risk Chart - EURRUB Trading

In the first examples of Risk-:-Reward Ratio, you can see that even if your EURRUB trading system only won 50% of your open EURRUB 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 EURRUB trade, a trader should define the point at which he will close the open EURRUB trade if it turns to be a losing one. Some traders use Forex Fib Retracement Levels and support & resistance zones. Others just use a pre-determined stop loss to set stop loss order once they have opened a EURRUB trade.

6. Write down the systems EURRUB rules & follow them

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

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

The next Forex systems lesson highlights to you an example of how to utilize the above steps to create your own EURRUB online trading system:

Next Guide: Example of Writing EURRUB Systems Rules

7. Practice on a EURRUB Demo Practice Account

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

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

Open a free demo practice account & trade EURRUB 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 EURRUB currency pair works.

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