Trade Forex Trading

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Creating a Forex Trading System That Works - 4 Example Templates - Best MetaTrader 4 Templates Forex Trading Systems

When creating your own Forex system, there are a few things to keep in mind. Your forex trading strategy needs to be able to spot new Forex market trends, while at the same time making sure you do not to get faked out/whipsaws. The real trick is, once you have created a Forex trading system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in forex trading.

 

Before trading Forex on a live Forex account, you have to figure out what forex trading strategy works for you. It is good to know in what forex chart time frame you are going to be working in, and how much you are willing to risk once you begin forex trading online. All these factors should be factored in, and should be written down within your Forex trading plan. A good place to test this forex trading plan would be on a free demo practice account. This is where you test your forex trading strategies risk free without investing money to determine which forex trading strategy is best suited for you.

 

So, now how can a Forex trader like you come up with a "good forex trading system" or the "best Forex trading system"?

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

 

The following example illustrates a goal and explains the forex trading rules of how to achieve that goal

Goals - Forex Trading System Goals

1. Identify a new forex trend

Moving average crossover method forex trading strategy is the most commonly used strategy to identify a new forex trend. The time to open a long or short trade is determined when two moving averages indicators cross over or cross under each other.

2. Confirm the new forex trend

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

 

Indicator based Forex Trading System

The best type of a forex trading method is one that is indicator-based. You will find it straightforward to generate the forex trading signals and thus less error-prone on your part and this will help you to avoid forex market whipsaws.

 

There are several things we want to achieve when creating a forex trading system:

  1. Find entry points as early as possible.
  2. Find exit points securing maximum gains.
  3. Avoid fake entry and exit signals.
  4. Proper Forex Money Management Rules

Accomplishing these four goals will result in aprofitable Forex trading strategy that works.

 

The last piece of information needed, is deciding how aggressive you are going to be when entering and exiting a trade. Those forex traders who are more aggressive wouldn't wait until the forex chart candlestick closes and would enter as soon as their forex indicators match up. But most forex traders would wait until the forex chart candlestick of the chart time frame they are using has closed, to have more stability when entering a the market.

 

To get profits out of the foreign exchange market you need to build your own profitable forex trading system; a trading method that will generate profitable forex trading signals. You need to have your own forex trading strategy that will help you achieve your financial goals. Sometimes the best Forex trading systems are the ones that you build on your own. No need to keep searching online for the best Forex systems or for Forex trading systems that work, this website provides you with all the forex tools required to help you and guide you on how to come up with your own Forex systems.

 

Below is an example of a Forex trade system based on RSI, MACD and Stochastic.

Creating Indicators Based Forex Trading System - Best MetaTrader 4 Templates Forex Trading Systems

Forex Trading System - Best MetaTrader 4 Templates Forex Trading Systems

 

The forex trading system example above is comprised of four forex technical indicators in total, all of these generate Forex trade signals using different methods, the moving average will generate forex signals using the moving average crossover method shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long and short signals as shown in the above example. How to generate these Forex signals is discussed in the next topic (on the sidebar navigation menu under key concepts).

 

For beginner forex traders, it is difficult for them to create their own Forex strategies since they do not have much knowledge about the Foreign exchange market. However, this learn forex trading website will explain how a beginner forex trader can create their own free Forex trading system in just seven easy steps. The best strategy is the one you come up with yourself and learn how to trade the foreign exchange market with it.


The main advantage of creating your own free Forex trading systems is that you will know how to make profits by yourself - and not rely on other peoples efforts.

 

In the next forex lesson located at the sidebar navigation menu below the forex key concepts will show you how to create a forex trading system like the one above, write it's forex rules and how to back test the forex trading system on a practice demo account before using it on a live Forex account.

 

4 Examples of Free Forex Trading Systems - Best MetaTrader 4 Templates Forex Trading Systems

 

Example 1: The Moving Average Crossover Method - Forex Trading Strategy

The moving average indicator cross over method uses two moving averages to generate Forex signals. The first Moving average uses a shorter period and the second is a longer period.

Moving Average Crossover Method Trading System - MetaTrader 4 Templates Forex Trading Systems

Moving Average Crossover Method - Moving Average Crossover Forex Trading Strategy

 

This above forex trading method is referred to as the moving average crossover method because forex trading signals are generated when the two averages cross above or below each other.

Short signal Long signal Generated by Moving Average Crossover Method - MetaTrader 4 Templates Forex Trading Systems

Forex System Trading Example - Short and Long signal Generated by Forex Trading System

 

A buy forex signal or going long trade is generated when the shorter moving average indicator crosses above the longer moving average indicator (Both Moving Averages Going Up).

 

A sell forex signal or a going short trade is generated when the shorter average indicator crosses below the longer moving average indicator (Both Moving Averages Going Down).

 

 

Example 2: Stochastics Forex Trading System - Best MetaTrader 4 Templates Forex Trading Systems



Stochastic Oscillator forex indicator can be combined with other Forex indicators to form a forex trading system.

  • RSI forex indicator
  • MACD forex indicator
  • Moving Averages forex indicators

 

Trading Systems Forex Example - Best MetaTrader 4 Templates Forex Trading Systems

Stochastic oscillator RSI and MACD Forex Trading System - MetaTrader 4 Templates Forex Trading Systems

Short Signal or Sell Signal


How the short sell forex signal was generated


From our forex trading rules the short signal is generated when:

  1. Both Moving Averages are heading down
  2. RSI is below 50
  3. Stochastic heading downwards
  4. MACD heading downwards below center-line


The short signal was generated when all the written forex trading rules were met. The exit signal is generated when a forex signal in the opposite direction is generated.

 

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

  • Stochastic - forex momentum oscillator indicator
  • RSI - forex momentum oscillator indicator
  • Moving Averages - forex trend following indicator
  • MACD - forex trend following oscillator

 

Based on the forex chart time frame used - this strategy can be used as Forex scalping system when the minute forex trading charts are used or as a Forex day trading system when hourly forex trading charts are used.

 

Example 3: Trading System Forex Example

 

This forex trading system is fully explained within the Forex trading plan on the Forex trading plan tutorial on this learn forex trading website under the Forex key concepts section located on the right navigation menu.

Forex Chart Time frame

1 hour forex chart



Indicators that identify a new forex trend

Moving Average Crossover Indicators Strategy

Indicators that confirm the forex trend

RSI indicator

STOCHASTIC OSCILLATOR indicator



Long Entry

1. Both MA(moving averages) pointing up

2. RSI above 50

3. Both stochastics going up




Short Entry

1. Both MA pointing down

2. RSI below 50

3. Both stochastics going down




Exit

1. MA Indicator gives opposite signal

2. RSI gives opposite signal




Risk Management

Stop loss- 35 pips

Take Profit- 70 pips

 

Reward to Risk 2:1

 

 

Example 4: New Gann Swing Chartist Plan - Best MetaTrader 4 Templates Forex Trading Systems

The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator and Gann Trend to form a complete Forex strategy commonly referred to as the - "New Gann Swing Chartist Plan". Within this methodology the Gann Swing Oscillator is used to help determine forex market swings for trading only within the current market trend is shown by the Gann Trend.

 

Below is the example of the New Gann Swing Chartist Plan

New Gann Swing Chartist Plan - Example Forex Trading System - Best MetaTrader 4 Templates Forex Trading Systems

The Gann Chartist Plan - Forex Trading Systems - MetaTrader 4 Template Forex Trading System

 

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