Index Trade System Guidelines: Write Down The Rules & Follow Them

We will utilize the 1-hour trading chart to formalize the trading rules for this particular Indices system.

An Indices framework denotes a documented collection of established directives that you follow & abide by to oversee your exchanges. These directives ought to be documented so as to direct you. The subsequent tutorial on learning to trade will demonstrate and clarify how to document the trading directives for your framework.

The main idea is a set of index rules for traders to follow. Without sticking to these rules, you lack a real system. Write down index trading rules in your plan.

Example illustration of Trade System below:

Stock Indices Trading Strategy Tutorial Guide - Index Indicator Strategy Example

Documenting the Guidelines of a System - Trading Chart Time Frame for 1 Hour

You can develop the above system using the steps:

Step 1:

Select and Choose your Chart Time-frame - 1 hour trade chart

Step 2:

Choose Indicators that spot a new trend - Moving Average(MA) Cross over System.

Step 3:

Select Indicators that confirm the trend - RSI, Stochastic

Step 4:

Finding entry & exit points

Long Entry

Both Moving Average MA pointing up
RSI above 50
Stochastic oscillator going up

Short Entry

Both MA Moving Average pointing down
RSI below 50
Stochastic oscillator going downward

Exit

Moving Averages(MA) generates in the opposite trend signal
RSI generates in the opposite trend signal

Step 5:

Calculating risks in every trade transaction - 20 pips

Step 6:

Write down the system Indices rules

Step 7:

Test the trading system on a demo account

After using these guidelines we develop a written system rules below.

Writing System Rules

Example of How Do You Write the Best System Rules

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

Indices Strategy Tutorial Guide - Index Indicator Strategy Example

Generating Profitable Buy and Sell Signals Based on Defined Stock Index Trading System Rules

We have finished writing the trading rules, if you're researching on how to develop the best system, this learn trading tutorial is a good begin place to guide you on how to do and carry out just that. This is one part of the plan. Now how do you as a trader develop a complete Index plan? To read and study about Forex plan tutorial navigate to right navigation menu of this web site under key concepts where you can find a link for this trade plan lesson.

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