Energies Strategy Rules: Write Down The Rules and Follow Them

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

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

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

Example of Trading System below:

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

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

Choose your Chart Timeframe - 1 hour chart

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

Choose 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 Energies Trading rules

Test the energies system on a demo practice account

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

Writing Trading System Rules

Example of How to Write The Best Trading System Rules

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

Generate Buy & Sell Trading Signals using Written System Rules

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