Creating a XAGEUR Indicator Based XAGEUR System

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

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

• RSI
• MACD
• MAs FX Indicator

Example

Creating a XAGEUR System - XAGEUR System Example

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

Seven steps to creating an indicator-based XAGEUR system

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

1. Choose your XAGEUR Time Frame

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

XAGEUR Chart Time Frames on MT4 - XAGEUR MT4 Chart

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

2. Select indicators to spot a new trend

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

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

Moving Average Crossover Strategy Method - XAGEUR Strategy

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

3. Select additional indicators to confirm the XAGEUR market trend

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

RSI & Stochastic Oscillator XAGEUR System

4. Finding entry & exit points

Once indicators are chosen so that one indicator gives the signal & another confirms the signal, it's time to enter a XAGEUR trade.

A XAGEUR trader should enter as soon as a signal gets generated and confirmed after a candlestick closes.

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

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

Generating XAGEUR Signals

Generating Forex XAGEUR 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 XAGEUR market volatility at any one specific time. Alternatively a trader can exit when the indicators give an opposite signal.

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

5. Calculate risks in each XAGEUR trade setup

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

The Risk to Reward Chart below shows you how:

Forex Money Management Reward Risk Chart - XAGEUR Trading

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

Before opening a new XAGEUR trade, a trader should define the point at which he will close the open XAGEUR 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 XAGEUR trade.

6. Write down the systems XAGEUR rules & follow them

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

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

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

Next Guide: Example of Writing Forex XAGEUR Systems Rules

7. Practice on a XAGEUR Practice Account

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

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

Open a free practice forex practice account and trade XAGEUR 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 XAGEUR currency pair works.

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