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 - 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 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
You can come up with the above Forex trading system using the steps below:
Choose your Chart Time Frame - 1 hour forex chart
Choose Indicators that identify a new trend- Moving Average Crossover System.
Finding entry and exit points
- Both MA pointing up
- RSI above 50
- Stochastic oscillator going up
- Both MA pointing down
- RSI below 50
- Stochastic oscillator going down
- MA gives opposite signal
- RSI gives opposite signal
Calculating risks in each trade - 20 pips
After using these steps we come up with the written Forex trading system rules below.
Writing Forex Trading System 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 trades.
Generate Buy and Sell Signals using Written Forex Trading System Rules
We have completed writing the 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.