Stock Indices Trading System Rules: Write Down The Rules and Follow Them

We shall use the previous steps to come up with a written stock index trading system that generates the trade signals shown below using the 1 hour stock index trading chart. We shall use the 1 hour stock index trading chart to write the rules of this stock indices strategy - stock indices system.

A stock index trading system refers to a set of written stock indices rules that you follow to manage your trades. These rules must be written down so as to guide you. The following learn stock indices tutorial will show you how to write the rules of your stock index trading system.

The keyword is a SET OF Stock Indices RULES which you must follow. If you don't follow the stock indices rules then you don't have a stock index trading system. stock index trading systems must have rules which are written down within your stock index trading plan.

Example of Stock Indices Trading System below:

Writing Rules of a Stock Indices Trading System- 1 hour Stock Index Trading Chart Time frame Trading

You can come up with the above stock index trading system using the steps below:

Step 1:

Choose your Chart Time Frame - 1 hour stock indices chart

Step 2:

Choose Indicators that identify a new trend - Moving Average Crossover System.

Step 3:

Choose Indicators that confirm the stock indices trend - RSI, Stochastic

Step 4:

Finding entry and exit points

Long Entry

1. Both MA pointing up
2. RSI above 50
3. Stochastic oscillator going up

Short Entry

1. Both MA pointing down
2. RSI below 50
3. Stochastic oscillator going down

Exit

1. MA gives opposite signal
2. RSI gives opposite signal

Step 5:

Calculating risks in each trade - 20 pips

Step 6:

Write down the stock indices trade system Stock Indices Trading rules

Step 7:

Test the stock indices system on a stock indices demo practice account

After using these steps we come up with the written stock index trading system rules below.

Writing Stock Indices Trading System Rules

Example of How to Write The Best Stock Indices Trading System Rules

This stock indices system produces the trading signals as shown below. Using these stock indices rules traders can determine when to enter and exit stock index trades.

Generate Buy and Sell Stock Indices Trading Signals using Written Stock Indices Trading System Rules

We have completed writing the stock indices rules, if you are researching on how to create the best stock index trading system, this learn stock indices tutorial is a good start to guide you on how to do just that. This is one part of a the stock index trading plan. Now how do you create a complete stock index trading plan? To read about Stock Indices Trading plan tutorial go to the right navigation menu of this website under Stock Indices Trading key concepts where you can find a link for this Indices trade plan topic.