Creating a Stock Trading System - Example Stock Trading Templates - What is a Stock Trading System?
When creating your own Stock trading system, there are a few things to keep in mind. Your stock trading strategy needs to be able to spot new Stock trading market trends, while at the same time making sure you do not to get faked out/whipsaws. The real trick is, once you have created a Stock trading system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in stock trading.
Before trading Stock on a live Stock trading account, you have to figure out what stock trading strategy works for you. It is good to know in what stock trading chart time frame you are going to be working in, and how much you are willing to risk once you begin stock trading online. All these factors should be factored in, and should be written down within your Stock trading plan. A good place to test this stock trading plan would be on a free demo practice account. This is where you test your stock trading strategies risk free without investing money to determine which stock trading strategy is best suited for you.
So, now how can a Stock trader like you come up with a "good stock trading system" or the "best Stock trading system"?
To come up with a good stock trading strategy the first thing to do is to define your objective or goal:
The following example illustrates a goal and explains the stock trading rules of how to achieve that goal
Goals - Stock Trading System Goals
1. Identify a new stock trading trend
Moving average crossover method stock trading strategy is the most commonly used strategy to identify a new stock trading trend. The time to open a long or short trade is determined when two moving averages indicators cross over or cross under each other.
2. Confirm the new stock trading trend
Relative Strength Index(RSI) Stock Trading Indicator and Stochastic Oscillator Stock Trading Indicator are the most commonly used stock trading indicators to confirm a Stock trend.
Indicator based Stock Trading System
The best type of a stock trading method is one that is indicator-based. You will find it straightforward to generate the stock trading signals and thus less error-prone on your part and this will help you to avoid stock trading market whipsaws.
There are several things we want to achieve when creating a stock trading system:
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry and exit signals.
- Proper Stock Trading Money Management Rules
Accomplishing these four goals will result in a profitable Stock trading strategy that works.
The last piece of information needed, is deciding how aggressive you are going to be when entering and exiting a trade. Those stock traders who are more aggressive wouldn't wait until the stock trading chart candlestick closes and would enter as soon as their stock trading indicators match up. But most stock traders would wait until the stock trading chart candlestick of the chart time frame they are using has closed, to have more stability when entering a the stock trading market.
To get profits out of the stock trading market you need to build your own profitable stock trading system; a trading method that will generate profitable stock trading signals. You need to have your own stock trading strategy that will help you achieve your financial goals. Sometimes the best Stock trading systems are the ones that you build on your own. No need to keep searching online for the best Stock trading systems or for Stock trading systems that work, this website provides you with all the stock trading tools required to help you and guide you on how to come up with your own Stock trading systems.
The stock trading system example above is comprised of four stock trading technical indicators in total, all of these generate Stock trade signals using different methods, the moving average will generate stock trading signals using the moving average crossover method shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long and short signals as shown in the above example. How to generate these Stock signals is discussed in the next topic (on the sidebar navigation menu under key concepts).
For beginner stock traders, it is difficult for them to create their own Stock trading strategies since they do not have much knowledge about the Stock trading market. However, this learn stock trading website will explain how a beginner stock trader can create their own free Stock trading system in just seven easy steps. The best strategy is the one you come up with yourself and learn how to trade the stock trading market with it.
The main advantage of creating your own free Stock trading systems is that you will know how to make profits by yourself - and not rely on other peoples efforts.
In the next stock trading lesson located at the sidebar navigation menu below the stock trading key concepts will show you how to create a stock trading system like the one above, write it's stock trading rules and how to back test the stock trading system on a practice demo stock trading account before using it on a live Stock trading account.
4 Examples of Free Stock Trading Systems - Best MetaTrader 4 Templates Stock Trading Systems
Example 1: The Moving Average Crossover Method - Stock Trading Strategy
The moving average indicator cross over method uses two moving averages to generate Stock signals. The first Moving average uses a shorter period and the second is a longer period.
Moving Average Crossover Method - Moving Average Crossover Stock Trading Strategy
This above stock trading method is referred to as the moving average crossover method because stock trading signals are generated when the two averages cross above or below each other.
Stock Trading System Trading Example - Short and Long signal Generated by Stock Trading System
A buy stock trading signal or going long trade is generated when the shorter moving average indicator crosses above the longer moving average indicator (Both Moving Averages Going Up).
A sell stock trading signal or a going short trade is generated when the shorter average indicator crosses below the longer moving average indicator (Both Moving Averages Going Down).
Example 2: Stochastics Stock Trading System - Best MetaTrader 4 Templates Stock Trading Systems
Stochastic Oscillator stock trading indicator can be combined with other Stock indicators to form a stock trading system.
- RSI stock trading indicator
- MACD stock trading indicator
- Moving Averages stock trading indicators
Trading Systems Stock Example - Best MetaTrader 4 Templates Stock Trading Systems
Short Signal or Sell Stock Trading Signal
How the short sell stock trading signal was generated
From our stock trading rules the short signal is generated when:
- Both Moving Averages are heading down
- RSI is below 50
- Stochastic heading downwards
- MACD heading downwards below center-line
The short signal was generated when all the written stock trading rules were met. The exit signal is generated when a stock trading signal in the opposite direction is generated.
The good thing about using such a stock trading method is that we are using different types of stock trading technical indicators to confirm the stock trading signals and avoid as many stock trading whipsaws as possible in the process.
- Stochastic - stock trading momentum oscillator indicator
- RSI - stock trading momentum oscillator indicator
- Moving Averages - stock trading trend following indicator
- MACD - stock trading trend following oscillator
Based on the stock trading chart time frame used - this strategy can be used as Stock scalping system when the minute stock trading charts are used or as a Stock day stock trading system when hourly stock trading charts are used.
Example 3: Trading System Stock Example
This stock trading system is fully explained within the Stock trading plan on the Stock trading plan tutorial on this learn stock trading website under the Stock key concepts section located on the right navigation menu.
Stock Trading Chart Time frame
1 hour stock trading chart
Indicators that identify a new stock trading trend
Moving Average Crossover Indicators Strategy
Indicators that confirm the stock trading trend
STOCHASTIC OSCILLATOR indicator
1. Both MA(moving averages) pointing up
2. RSI above 50
3. Both stochastics going up
1. Both MA pointing down
2. RSI below 50
3. Both stochastics going down
1. MA Indicator gives opposite signal
2. RSI gives opposite signal
Stop loss- 25 pips
Take Profit- 50 pips
Reward to Risk 2:1
Example 4: New Gann Swing Chartist Plan - Best MetaTrader 4 Templates Stock Trading Systems
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator and Gann Trend to form a complete Stock strategy commonly referred to as the - "New Gann Swing Chartist Plan". Within this methodology the Gann Swing Oscillator is used to help determine stock trading market swings for trading only within the current market stock trading trend is shown by the Gann Trend.
Below is the example of the New Gann Swing Chartist Plan The Gann Chartist Plan - Stock Trading Systems - MetaTrader 4 Template Stock Trading System Creating a Stock Trading System - Example Stock Trading Templates - What is a Stock Trading System? How to Come Up with a Stock Trading System - How to Create a Stock Trading System
Below is the example of the New Gann Swing Chartist Plan
The Gann Chartist Plan - Stock Trading Systems - MetaTrader 4 Template Stock Trading System
Creating a Stock Trading System - Example Stock Trading Templates - What is a Stock Trading System? How to Come Up with a Stock Trading System - How to Create a Stock Trading System