Developing a USDRUB Indicator Based USDRUB System

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

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

• RSI
• MACD
• Moving Averages Indicator

Example

Creating a USDRUB System - USDRUB System Example

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

Seven steps to creating an indicator based USDRUB system

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

1. Choose your USDRUB Time Frame

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

USDRUB Chart Time Frames on MT4 - USDRUB MT4 Chart

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

2. Select indicators to identify a new trend

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

One of the common ways to identify a new USDRUB trend as fast as possible is to use MAs Indicator. A simple system is to use a MA cross over system that will identify a new USDRUB setup opportunity at its earliest stage.

Moving Average Crossover Technique - USDRUB Strategy

USDRUB Sell signal and USDRUB Buy signal Generated by Moving Average Crossover Strategy Method

3. Select additional indicators to confirm the USDRUB market trend

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

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

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

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

Generating USDRUB Signals

Generating USDRUB 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 Fib Expansion Indicator or set a protective stop loss depending on the USDRUB market volatility at any particular time. Alternatively a trader can exit when the indicators give an opposite signal.

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

5. Calculate risks in each USDRUB trading setup

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

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

The Risk-Reward Chart below displays you how:

Forex Money Management Reward Risk Chart - USDRUB Trading

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

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

6. Write down the systems USDRUB rules & follow them

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

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

The next Forex systems lesson portrays to you an example of how to utilize the above steps to come up with your own USDRUB online trading system:

Next Guide: Example of Writing USDRUB Systems Rules

7. Practice on a USDRUB Demo Account

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

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

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

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

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