Trade Forex Trading

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Forex Trading System Rules: Write Down The Rules and Follow Them

We shall use the previous steps to come up with a written forex trading system that generates the trade signals shown below using the 1 hour Forex trading chart. We shall use the 1 hour Forex trading chart to write the rules of this forex trading strategy - forex trading system.


A Forex trading system refers to a set of written forex rules that you follow to manage your trades. These rules must be written down so as to guide you. The following learn forex trading tutorial will show you how to write the rules of your Forex system.


The keyword is a SET OF Forex Trading RULES which you must follow. If you don't follow the forex trading rules then you don't have a Forex trading system. Forex systems must have rules which are written down within your Forex trading plan.


Example of Forex Trading System below:

Writing Rules of a Forex Trading System - 1 hour Forex Chart Time frame Trading

Writing Rules of a Forex Trading System - 1 hour Forex Chart Time frame Trading



You can come up with the above Forex trading system using the steps below:

Step 1:


Choose your Chart Time Frame - 1 hour forex chart


Step 2:


Choose Indicators that identify a new trend- Moving Average Crossover System.


Step 3:


Choose Indicators that confirm the trend - RSI, Stochastic



Step 4:


Finding entry and exit points


Long Entry


  1. Both MA pointing up

  2. RSI above 50

  3. Stochastic oscillator going up

Short Entry


  1. Both MA pointing down

  2. RSI below 50

  3. Stochastic oscillator going down


Exit


  1. MA gives opposite signal

  2. RSI gives opposite signal


Step 5:


Calculating risks in each trade - 20 pips


Step 6:


Write down the forex trade system Forex rules



Step 7:


Test the forex trading system on a forex demo practice account




After using these steps we come up with the written Forex trading system rules below.



Writing Forex Trading System Forex Rules

Write Rules Forex Trading System - Writing Rules

Example of How to Write The Best Forex Trading System Rules


This forex trading system produces the trading signals as shown below. Using these forex trading rules traders can determine when to enter and exit forex trades.

Generate Buy and Sell Forex Trading Signals using Written Forex Trading System Rules

Generate Buy and Sell Forex Trading Signals using Written Forex Trading System Rules


We have completed writing the forex trading rules, if you are researching on how to create the best Forex system, this learn forex trading tutorial is a good start to guide you on how to do just that. This is one part of a the Forex trading plan. Now how do you create a complete Forex trading plan? To read about FX plan tutorial go to the right navigation menu of this website under Forex key concepts where you can find a link for this Forex trade plan topic.

 

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