Oil System Rules: Write Down The Rules & Follow Them

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

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

The keyword is a SET OF RULES which you must follow. If you don't follow the rules then you don't have a crude oil trading system. Trading systems must have rules which are written down within your oil trading plan.

Example of Oil Trading System below:

Writing Rules of a Oil Trading System- 1 hour Oil Trading Chart Time frame Trading

You can come up with the above oil trading system using the steps below:

Choose your Chart Time-frame - 1 hour oil trading chart

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

Choose Indicators that confirm the oil trend - RSI, Stochastic

Finding entry & exit points

Long Entry

1. Both Moving Average pointing up
2. RSI above 50
3. Stochastic oscillator going up

Short Entry

1. Both Moving Average 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 oil trade system Oil Trading rules

Test the system on a crude oil practice trading account

After using these steps we come up with the written oil trading system rules below.

Writing Oil Trading System Oil Trading Rules

Examples of How to Write The Best Oil Trading System Rules

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

Generate Buy & Sell Oil Trading Signals using Written System Rules

We have completed writing the rules, if you are researching on how to create the best oil system, this tutorial is a good start to guide you on how to do just that. This is one part of a the oil trading plan. Now how do you create a complete oil trading plan? To read about Oil Trading plan tutorial go to the right navigation menu of this website under Oil Trading key concepts where you can find a link for this Oil trade plan topic.