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

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

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

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 System below:

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

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

Choose your Chart Timeframe - 1 hour stock index trading chart

Choose Technical Indicators which spot a new trend - Moving Average Crossover System.

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

Finding entry & 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

Calculating risks in each trade - 20 pips

Write down the stock indices trade system Stock Indices Trading rules

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

After using these steps we create written stock index system rules below.

Writing Stock Indices Trading System Rules

Example of How to Write the Best Stock Indices System Rules

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

Generate Buy & Sell Stock Indices Signals using Written Stock Indices System Rules

We have completed writing the stock indices rules, if you are researching on how to create the best stock index 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.