Commodity Trading System Rules: Write Down The Rules & 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 trading chart. We shall use the 1 H trading chart to write the guide-lines of this commodity strategy - trading system.

A trading 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 guide you. Following learn commodity tutorial will show you how to writedown the rules of your trading system.

Keyword is a SET OF Commodities RULES which you must follow. If you do not follow the commodity rules then you don't have a trading system. Trade systems must have guidelines which are written down within your commodities trading plan.

Example of Trading System below:

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

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

Choose your Chart Time Frame - 1 hour chart

Choose Indicators that spot a new trend - MA Cross Over System.

Choose Indicators that confirm the commodity trend - RSI, Stochastic

Finding entry and 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 commodity trade system Commodity Trading rules

Test the commodity system on a commodity practice trading account

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

Writing Trading System Rules

Example of How to Write The Best Trading System Rules

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

Generate Buy & Sell Trading Signals using Written System Rules

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