How to Write The Best Oil Trading Plan

The following is a trade plan example template of a best oil trading plan:

JUSTIFICATION

1. Crude Oil Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS

• Businesses that are successful always begin with a plan.
• Successful business planning will guide you to success, think of the oil trading plan as a map: it's a constant reminder of how you will consistently pull profits from the oil market.
• Difference between a successful oil trader and a losing one is the oil trading plan.

2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Oil

Consistency is important in your routine to measure how successful you are.

Keep you on target, read your oil trading plan every day and stick to it.

When it comes to your oil trade plan you should think of it as a map which shows you this is what you follow, it should have clear oil rules which specify when you open or close a oil trade transaction.

Your oil trading plan should cover all aspects of oil trading, you should read your oil trading plan every day until it's on your fingertips so that when you are trading on the fast moving market of oil trading you will always know what to do in every situation.

Your oil trading plan can be as simple or as complicated as you like, but the most important thing is that you've one. By having a oil trading plan you have an advantage over the crude oil market, you'll have better odds of making a profit than those oil traders who don't have a oil trade plan.

This oil trading plan tutorial topic provides oil traders with an example oil trading plan template that you can use for creating your own oil trade plan. By now you have already written down the justification part of your oil trading plan template, If not get a pen and paper and write the justification part. Next we shall look at how to write the crude oil trading system.

Oil Trading plan is one of the secrets which can help you to improve your trading profits. A good oil training guide like this one should show you how to create a oil trading plan using a oil trading plan template which you can use as example to develop your own.

One of the most common question is, Is Oil Trading profitable? one of the methods to make it profitable is to have a good oil trade plan.

IF YOU HAVE A GOOD Crude Oil Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO ITS Rules When Oil Trading Crude Oil, YOU WILL BE SUCCESSFUL.

GOALS OF THE Oil TRADING SYSTEM

1. Ability to IDENTIFY A Oil Trading TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The oil trading system should find a compromise between the two Goals,

Find a way to identify a oil trend as early as possible but also find ways to help you distinguish the fake trading signals from the real ones.

FUNCTIONS OF EACH Oil TECHNICAL INDICATOR

MA - Identify a new oil trend as early as possible.

MACD - Identify a oil trend as early as possible.

Determine strength of a continuing oil trend.

RSI - Swing failure to confirm the begin of a new oil trend.

Extra confirmation oil indicators & tools to help determine the strength of our oil trend.

Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the oil trend.

Oil Trading Trend Lines - Signals a reversal when the oil trend line is broken

Oil Trading Price Action Signals - confirm the weakening of a oil trend.

Bollinger Band - for oil price action study

To learn more about each crude oil technical indicator and how these indicators can be used to generate oil signal setups you can go to the Oil Technical Indicators Section

CHART TIMEFRAMES

• Main oil chart time-frame is the 1H.
• Oil Trading Signals are generated on the 15 minute chart time-frame.

15 Min Oil Trading Charts

• Oil Trading Trend Lines (Support and Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

Oil Trading System RULES

LONG ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving UP
2. MACD moving UP
3. RSI >-> 50
4. Parabolic SAR is below the crude oil price ( Support )

When a oil signal is generated on 1 H Chart, use the 15 min chart time-frame to open & close positions.

LONG EXIT

1. RSI gives opposite trading signal
2. Oil Trading Price breaks Support Oil Trading Trend Line
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving DOWN
2. MACD moving DOWN
3. RSI <-< 50
4. Parabolic SAR is above the crude oil price ( Support )

When signal is generated on 1 H Chart, use the 15 min chart time-frame to open & close positions.

SHORT EXIT

1. RSI gives opposite trading signal
2. Oil Trading Price action breaks Support Oil Trading Trend Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

1. oil signals are generated using 1H oil chart timeframe and executed using the 15 minute oil chart timeframe.
2. oil trade signal to be executed immediately rules are met.
3. Entry alert signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET - MARKET HOURS

Watch market during daytime when most companies & online oil brokers are open for trade transactions. Use this to create a suitable oil trading schedule.

Example

Oil Trading Tips - You can use the MT4 Oil Trading Software Platform to save this oil trading plan example as a oil trading template on the MT4 platform - that way you don't have to lay it afresh every time you open a new crude oil chart. If you want to learn how to save a oil trading template on the MT4 platform, read: MT4 Oil Platform Lessons.

MONEY MANAGEMENT RULES

• Day trading - Low risk High return technique
• Trade when I have a high risk to reward ratio 3:1 or more
• Stop loss = Parabolic SAR

• Set TP target 40-60 Oil Trading Pips
• Never transact beyond 3 % of oil trading account equity
• Never risk more than 2% on a single trade

MINDSET/PSYCHOLOGY

• Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
• I trade what my eyes see not what I feel.
• I will be patient.

My job is not to be the oil trading system!

It is not to decide which signal looks promising.

That is the job of my oil system - that has a set of trading rules which tells me this is what I follow. Do not get caught up in crude oil price action and make trading rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently & wait for my oil trading strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the oil trade plan as outlined.

Taking trades not indicated by the oil trading system, second guessing the crude oil trading system & not taking signals given, hesitating & getting in late, anticipating and getting in early are all common place & boil down to lack of faith in the plan & not having a burning focus on accurate execution.

GOAL: To have 100% undivided focus on mastering my ability to execute my oil trading rules accurately.

The more you develop the ability to step back from crude oil price movement & watch the crude oil market dispassionately, waiting for a signal, the easier it will be to witness fluctuations of your emotions without getting sucked into them & allowing them to throw you off your game.

WEAKNESS

1. I am greedy.
2. I over-trade
3. Make a list of all your weaknesses which are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Oil Trading psychology to help you overcome them.

NB: by writing down your weaknesses you'll start recognizing them as you make progress in crude oil trading, once you do this you will start to avoid this mistakes and your trading results will improve.

GOALS

• To focus on exit just as much as I do on entry signals.
• Always protect my oil trading account using stop loss, oil trading money management methods, follow with the oil trend direction & always following the rules of my oil trading strategy.
• Never second guess or go against my oil strategy. To always keep up my discipline.
• Follow all the rules of my oil strategy & never break them.
• Trade fewer times & execute all my oil signals correctly. Trade what I see, what the oil trading system + crude oil charts are telling me.
• Sit patiently & wait for oil trading signals from my oil trading strategy.
• Achieve consistent profitable results before opening a live crude oil trading account.

FOLLOW THIS SYSTEM

This is the most important part of creating the oil trading system.

Always follow the rules

Stick with the rules

Be disciplined & patient enough

Oil Trading JOURNAL

Log all my oil trade transactions in a oil trading journal in order to track my training progress & improve my oil trading execution methods.

The oil trading strategy uses momentum to determine the oil trend of any oil.

Even if you are new to oil market and you do not know how a oil trading system looks like, this crude oil trading system examples illustrates to you how a system oil trading strategy should look like, the Oil Trading tutorials explained in other sections of this learn oil training website will also explain further different aspects which you need to learn.

Hence, aim is to help you come up with your own complete oil trading strategy that's if you are looking for one, by showing you one that is already complete. In fact you can just use this oil trading plan example as it is, or make a few adjustments so that it fits your oil trading style.

The objective is to help you improve your oil trading results by using a oil trading plan that is written, and another advantage is that this oil trade plan will offer you a chance to improve your knowledge and it will help you trade better, make pips and keep them so that you do not keep giving them back to the oil market.

Read this oil trading plan training tutorial about developing a oil trade plan of your own, along with learn oil trading courses and oil trading strategies listed at the top of this learn oil tutorial.

The Most Beneficial part of using this oil trading plan template is the "Oil Money Management Part" you'll learn how to trade oil and minimize risk, which is the most important thing when it comes to the crude oil market trading.