Making a USDSGD Indicator Based USDSGD System

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

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

• RSI
• MACD
• MAs Indicator

Example

Creating a USDSGD System - USDSGD System Example

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

Seven steps to creating an indicator based USDSGD system

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

1. Choose your USDSGD Time Frame

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

USDSGD Chart Time Frames in MetaTrader 4 - USDSGD MT4 Chart

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

2. Choose indicators to identify a new trend

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

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

MA Crossover Technique - USDSGD Strategy

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

3. Select additional indicators to confirm the USDSGD market trend

Once we find a new USDSGD trend we need to use additional indicators that will confirm the USDSGD entry signals & give either a green light for action or save a trader from fake-outs.

To confirm the signals we use RSI and Stochastic.

RSI & Stochastic Oscillator USDSGD 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 USDSGD trade.

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

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

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

Generating USDSGD Signals

Generating USDSGD Trade Signals

For exits, one 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 USDSGD market volatility at any one particular time. Alternatively one can exit when the indicators give an opposite signal.

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

5. Calculate risks in each USDSGD trading setup

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

The Risk-Reward Chart below displays you how:

Forex Money Management Reward Risk Chart - USDSGD Trading

In the first examples of Risk-:-Reward Ratio, you can see that even if your USDSGD system only won 50% of your open USDSGD 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.

Before opening a new USDSGD trade, a trader should define the point at which he will close the open USDSGD trade if it turns to be a losing one. Some traders use FX Fibonacci 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 USDSGD trade.

6. Write down the systems USDSGD rules & follow them

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

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

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

Next Guide: Example of Writing USDSGD Systems Rules

7. Practice on a USDSGD Practice Demo Account

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

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

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

It's 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 USDSGD currency pair works.

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