How to Write a Good Oil Trading Plan

trading plan checklist - the following is a template example of a oil trading plan template example:

JUSTIFICATION

1. Oil Trading IS A BUSINESS, SUCCESSFUL BUSINESSES ALWAYS HAVE PLANS

• Businesses that are successful always begin with a plan.
• Successful business planning will guide you to success, think of oil trade plan as a map: it's a constant reminder of how you will consistently pull profits from the oil market.
• Difference between a successful trader & a losing oil trading one is the oil trade plan.

2. TO KEEP ME IN THE RIGHT DIRECTION when Trading Oil

Consistency is important in your routine to measure how successful you are.

Keep you on target, read the oil trade plan every day & stick to its rules.

When it comes to your plan you should think of it as a map which shows you this is what you follow, it should have clear rules which specify when you open or close trade.

Your oil trading plan should cover all aspects of oil trading, you should read the oil trading plan every day until it is on your fingertips so that when you are transacting on the fast moving market of oil trading you will always know what to do in every situation.

Your oil trading plan can be as simple or as complicated as you like, but the most important thing is that you've one. By having a one you have an advantage over the crude oil market, you'll have better odds of making a profit than those who do not have one.

This oil trading plan checklist tutorial topic provides with an example oil trading plan template that you can use for creating your own oil trade. By now you have already written down the justification part of your oil trading plan template, If not get a pen & paper and write the justification part. Next we shall look at how to write the system.

Oil Trading plan is one of the secrets which can help you to improve your trading profits. A good oil trading training guide like this one should show you how to come up with one using a oil trading plan template which you can use as an example to develop your own oil trade plan.

One of the most common question is, Is Oil Trading profitable? one of the techniques to make it profitable is to have a good plan.

IF YOU HAVE A GOOD Crude Oil Trading PLAN AND ARE DISCIPLINED ENOUGH TO STICK TO ITS Rules When Oil Trading Crude Oil, YOU WILL BE SUCCESSFUL.

GOALS OF THE TRADING SYSTEM

1. Ability to IDENTIFY TREND AS EARLY AS POSSIBLE .
2. Ability to AVOID WHIPSAWS .

The oil trade system should find a compromise between the 2 Goals,

Find a way to identify a oil trend as early as possible but also find ways to help you distinguish the fake trading signals from the real ones.

FUNCTIONS OF EACH INDICATOR

MA - Identify a new oil trend as early as possible.

MACD - Identify a oil trend as early as possible.

Determine strength of a continuing trend.

RSI - Swing failure to confirm the begin of a new oil trend.

Extra confirmation tools to help determine the strength of our oil trend.

Parabolic SAR - Help to ensure that we are not caught up on the wrong side of the trend.

Oil Trading Trend Lines - Signals a reversal when the line is broken

Oil Trading Price Action Signals - confirm the weakening of a trend.

Bollinger Band - for oil price action study

To learn more about each indicator & how these indicators can be used to generate trading signal setups you can go to the Crude Oil Technical Indicators Section

CHART TIMEFRAMES

• Main timeframe is the 1H.
• Signals are generated on 15 minute time frame.

15 Minutes Charts

• Oil Trading Trend Lines (Support and Resistance)
• 5 & 7 LWMA
• RSI (14)
• Bollinger Bands (20, 2)

RULES

LONG ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving UP
2. MACD moving UP
3. RSI >-> 50
4. Parabolic SAR is below the crude oil price ( Support )

When signal is generated on the 1 Hour Oil Trading Chart, use the 15 minute oil chart timeframe to open and close positions.

LONG EXIT

1. RSI gives opposite signal
2. Oil Trading Price breaks Support Oil Trading Trend Line
3. Parabolic SAR is hit (Trailing Stop)

RULES

SHORT ENTRY

Entry

15 Minutes Charts

1. Both MAs are moving DOWN
2. MACD moving DOWN
3. RSI <-< 50
4. Parabolic SAR is above the crude oil price ( Support )

When signal is generated on the 1 Hour Chart, use the 15 minute oil chart timeframe to open and close trade positions.

SHORT EXIT

1. RSI gives opposite signal
2. Oil Trading Price action breaks Support Oil Trading Trend Line
3. Parabolic SAR is hit (Trailing Stop)

ROUTINE

1. Signals are generated using 1H oil chart timeframe and executed using the 15 minute oil chart timeframe.
2. Trading trading signal to be executed immediately trading rules are met.
3. Entry alert signals should be executed during daytime.

TIME OF DAY TO WATCH MARKET - MARKET HOURS

Watch market during daytime when most companies & online oil brokers are open for trade transactions. Use this to create a suitable program.

Example

Tips - You can use the MT4 Oil Trading Software Platform to save this as a oil trading template that way you don't have to lay it afresh every time you open a new crude oil chart. If you want to learn how to save a oil trading plan template on the MT4 platform, read: MT4 Oil Platform Lessons.

Oil Trading Money Management

• Day trading - Low risk High return technique
• Trade when I have a high risk to reward ratio 3:1 or more
• Stop loss = Parabolic SAR

• Set TP target 40-60 Oil Trading Pips
• Never transact beyond Three % of account equity
• Never risk more than 2% on a single oil trade transaction

Oil MINDSET/PSYCHOLOGY

• Trade without Emotions (greed, fear, impulse, bias, anticipation, overexcitement)
• I trade what my eyes see not what I feel.
• I will be patient.

My job is not to be the oil trading system!

It is not to decide which signal looks promising.

That is the job of my oil system - that has a set of oil trading rules which tells me this is what I follow. Do not get caught up in crude oil price action and make trading rules as you go along.

MY JOB DESCRIPTION IS

To sit patiently & wait for my oil trading strategy to indicate that it is time to enter or it is time to exit. And then with great focus I execute the oil trading plan as outlined.

Taking trades not indicated by the oil trading system, second guessing it and not taking signals given, hesitating and getting in late, anticipating and getting in early are all common place & boil down to lack of faith in the plan & not having a burning focus on accurate execution.

GOAL: To have 100% undivided focus on mastering my ability to execute my Oil Trading rules accurately.

The more you develop the ability to step back from crude oil price movement & watch the crude oil market dispassionately, waiting for a oil trading signal, the easier it will be to witness the fluctuations of your emotions without getting sucked into them allowing them to throw you off your game.

WEAKNESS

1. I am greedy.
2. I over-trade
3. Make a list of all your weaknesses which are interfering with your trading. This is the first step to help you overcome these weaknesses. Use Oil Trading psychology to help you overcome them.

NB: by writing down your weaknesses you will begin recognizing them as you make progress, once you do this you will start to avoid this mistakes and your results will improve.

GOALS

• To focus on exit just as much as I do on entry signals.
• Always protect my account using stop loss, oil trading money management methods, follow with the oil trend direction and always following the trading rules of my oil trading strategy.
• Never second guess or go against my strategy. To always keep up my discipline.
• Follow all the rules of my oil strategy & never break them.
• Transact fewer times & execute all my signals correctly. Trade what I see, what the system + crude oil charts are telling me.
• Sit patiently & wait for signals from my strategy.
• Achieve consistent oil trading results before opening a live crude oil trading account.

FOLLOW THIS Oil Trading SYSTEM

This is the most important part of creating the oil trading system.

Always follow the trading rules

Stick with the trading rules

Be disciplined & patient enough

Oil Trading JOURNAL

Log all my trades in a oil trading journal in order to track my training progress & improve my oil trading execution trading methods.

This oil trading strategy uses momentum to determine the oil trend of any oil.

Even if you are new to oil market and you do not know how a oil trading system looks like, this oil trading system template example illustrates to you how a oil trading strategy should look like, the Oil Trading guides described in other sections of this training website will also explain further different aspects which you need to learn.

Hence, aim is to help you come up with your own complete oil trading strategy that is if you are looking for one, by showing you one that is already complete. In fact you can just use it as it is, or make a few adjustments so that it suits your oil trading style.

The objective is to help you improve your oil trading results by using a oil trading plan, and another advantage is that this oil trade plan will offer you a chance to improve your knowledge and it will help you improve your oil trading results and help you make pips when crude oil trading and keep them so that you do not keep giving them back to the oil market.

Read this oil trading plan training tutorial about developing a oil trade plan of your own, along with learn oil trading courses and oil trading strategies listed at the top of this learn oil lesson web-site.

The Most Beneficial part of using this oil trading plan template is the "Oil Money Management Part" you'll learn how to trade oil and minimize risk, which is the most important thing when it comes to trading the oil market.

Oil Trading Plan Checklist - How to Develop a Trading Plan in Crude Oil Trading - Oil Trading Plan Example - Oil Trading Plan Doc