Stock Trading System Rules: Write Down The Rules and Follow Them
We shall use the previous steps to come up with a written Stock trading system that generates the trade signals shown below using the 1 hour Stock trading chart. We shall use the 1 hour Stock trading chart to write the rules of this stock trading strategy - stock trading system.
A Stock trading system refers to a set of written stock trading rules that you follow to manage your trades. These rules must be written down so as to guide you. The following learn stock trading tutorial will show you how to write the rules of your Stock trading system.
The keyword is a SET OF Stock Trading RULES which you must follow. If you don't follow the stock trading rules then you don't have a Stock trading system. Stock trading systems must have rules which are written down within your Stock trading plan.
Example of Stock Trading System below:
Writing Rules of a Stock Trading System - 1 hour Stock Trading Chart Time frame Trading
You can come up with the above Stock trading system using the steps below:
Choose your Chart Time Frame - 1 hour stock trading chart
Choose Indicators that identify a new trend- Moving Average Crossover System.
Finding entry and exit points
- Both MA pointing up
- RSI above 50
- Stochastic oscillator going up
- Both MA pointing down
- RSI below 50
- Stochastic oscillator going down
- MA gives opposite signal
- RSI gives opposite signal
Calculating risks in each trade - 20 pips
After using these steps we come up with the written Stock trading system rules below.
Writing Stock Trading System Stock Rules
Example of How to Write The Best Stock Trading System Rules
This stock trading system produces the trading signals as shown below. Using these stock trading rules traders can determine when to enter and exit stock trading trades.
Generate Buy and Sell Stock Trading Signals using Written Stock Trading System Rules
We have completed writing the stock trading rules, if you are researching on how to create the best Stock trading system, this learn stock trading tutorial is a good start to guide you on how to do just that. This is one part of a the Stock trading plan. Now how do you create a complete Stock trading plan? To read about Stock plan tutorial go to the right navigation menu of this website under Stock key concepts where you can find a link for this Stock trade plan topic.