Stocks 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 stocks strategy - stocks trading system.

A stock trading system refers to a set of written stocks trading rules that you follow to manage your trades. These rules must be written down so as to guide you. The following learn stocks tutorial will show you how to write the rules of your stock trading system.

The keyword is a SET OF Stocks RULES which you must follow. If you don't follow the stocks 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 Stocks System below:

Writing Rules of a Stocks System- 1 hour Stock 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 stocks trading chart

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

Choose Indicators that confirm the stocks trend - RSI, Stochastic

Finding entry and 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 stocks trade system Stocks Trading rules

Test the stocks system on a stocks demo practice account

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

Writing Stocks Trading System Rules

Example of How to Write The Best Stocks System Rules

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

Generate Buy and Sell Stocks Signals using Written Stocks System Rules

We have completed writing the stocks rules, if you are researching on how to create the best stock trading system, this learn stocks 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 i create a complete stock trading plan? To read about Stocks Trading plan tutorial go to the right navigation menu of this website under Stocks Trading key concepts where you can find a link for this Stocks trade plan topic.