CFD System Rules: Write Down The Rules and Follow Them

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

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

Keyword is a SET OF CFD RULES which you must follow. If you don't follow the cfd rules then you don't have a cfds trading system. Trading systems must have guide-lines which are written down within your cfd trading plan.

Example of CFD System below:

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

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

Choose your Chart Timeframe - 1 hour chart

Choose Technical Indicators that spot a new trend - Moving Average Cross-over System.

Choose Technical Indicators that confirm the 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 trade system CFD Trading rules

Test the cfd system on a Demo Account

After using these steps we create written cfd system rules below.

Writing System CFD Trading Rules

Examples of How to Write The Best CFD System Rules

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

Generate Buy and Sell CFD Signals using Written CFD System Rules

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