How to Generate Trading Signals With Trading Strategies

Generating Energies Trading Meta Trader 4 Free Signals

The only method of energies is through trading signals, It is best to learn how to generate these energies signals for yourself, this way you do not have to rely on other traders to generate them for you.

Generating energies trading signals is not easy and requires you to have a lot of technical analysis knowledge and experience, but the earlier you start practicing how to generate these energies signals for yourself the better it is for you.

A good technique of how to practice generating energies trading signals with trading systems is to open a free practice Energies Trading practice account & test your energies signals on this practice account risk free without risking your money, then once you have tested your energies strategies & they are profitable on the energies practice account you can the use these energies signals on a live energies trading account.

The method of how to practice generating these energies signals as well as how to back test the energies signals on the demo energies account using the Meta Trader 4 trading platform is discussed below:

So, How Can a Trader Generate Trade Signals?

The best technique of generating energies signals is through trading systems, You can Learn how to come up with trading systems from the lesson how to create Trading Systems on the right navigation menu under the tutorials Trade Key Concepts.

A trading system is a combination of one or 2 or more technical indicators with written energies guidelines of how these indicators will generate these energies trade signals.

Take an example of the simplest energies system or energies strategy known as moving average cross-over energies method. A buy signal or sell signal is generated when there is a crossover of the two moving averages; either a buy signal for an upward moving average cross-over or a sell signal for down ward trend.

Generating Energies Trading MT4 Free Signals - Energies Trading MT4 Signal Indicator - Trading Signals MT4 Indicator Strategy MA Crossover Strategy

The energies system example highlighted & described below displays a trading system using the above moving average strategy combined with the RSI and MACD indicators to generate buy & sell trades.

Example of Generating Energies Trading MT4 Free Signals - Energies Trading MT4 Signal Indicator - Trading Signals MT4 Indicator Strategy

When it comes to generating buy & sell signals, traders should use simple energies systems to generate these energies trade signals.

Generating Energies Trading MT4 Free Signals - Energies Trading MT4 Signal Indicator - Trading Signals MT4 Indicator Strategy - Buy and Sell Trading Signals

Energy Trading Strategies

An example of a simple trading system that works, is one that's a combination of:

• Moving average crossover strategy
• RSI
• MACD

The written energies rules are:

Generating Trading Signals Strategy - Trading System Examples

Trade Rules:

Buy Trading Signal gets to be Generated when:

• Both Moving averages going up
• RSI value above 50
• MACD above center line

Sell Trading Signal gets to be Generated when:

• Both Moving averages going down
• RSI value below 50
• MACD below center-line

Generating Buy and Sell Trades - Examples of a Strategy

Exit Trade Signal

Exit signal is generated when MA, RSI and MACD indicator give a signal in opposite direction.

The chart timeframe to use is 1 hour chart timeframe or 15 minutes chart timeframe depending on what type of trader you are.

For a starter trader the above written energies rules will give good buy & sell trade signals, the only thing which a trader needs to do is to have the discipline to follow the written signals rules the exact way they are, and wait for a buy or sell trade transaction to be indicated by your energies strategy and trade after the signals have been generated, not before they are generated.

Back Testing

Generating Trading Signals with a energies system is one of the easiest method to trade energies trading, it is the best way that a beginner can attempt to determine the direction of the market energies trend with a good level of accuracy, and with a little back testing on practice account so as to gradually increase the level of accuracy of this energies trading signals strategy

The best way to back test a trading strategy is by following these 2 steps:

1. Energies Trading Paper Trade
2. Trading Demo Trade

Energies Trading Paper Trading - This method of testing a energies system involves placing your energies system on the energies charts, then take the chart back to a particular date, 3 months back for example, and then using this chart history to determine where your energies strategy would have given buy, sell and exit energies signals. Write down these points and the profit per trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of energies trades such as 50 paper trades transactions and determine if your energies method is overall profitable, the win ratio, the loss ratio and the risk:reward.

This is an ancient technique of testing energies systems which was used by traditional investors when there was no online energies markets or computers for that matter, the trader would use something like the A3 or A2 paper, graph format paper and draw the charts manually (Imagine plotting the charts on your energies platform by hand every day or every hour, would you be ready to do that? I doubt) Those investors were hardworking than most, some were so used that they still continue to paper trade the online energies market and draw the energies charts on paper, anyway for our paper method example, just a sample data of 50 trade transactions is all we need.

A good energies tool to use to back test your energies trading system is known as the MT4 Energies Step by Step Tool. Found on the Meta Trader 4 charts tool bar of MetaTrader 4 trading platform, If you want to find the charts toolbar on the MT4 platform it is at the top of the MT4 trading platform. If it is not: Click View (next to file, top left corner of MetaTrader 4)>>> Tool Bar >>> Charts. Then click the Customize button key >>> Select Trade Step by Step >>> Click Insert >>> Close.

MetaTrader 4 Trading Platform Chart Tool Bars - How to Trade Energies For New Traders

MetaTrader 4 Chart Tool Bars - Energies Trading Step by Step Button for Back Testing Energies Systems Discussed

Once you get this MetaTrader 4 tool you can move your energies chart backwards, & use this MT4 tool to move the energies charts energies step by step while at the same time testing when your energies system would have generated either a buy or sell trade transaction, & where you would have exited the trade, then write down the amount of profit/loss per energies trade transaction and out of a sample number of energies transactions you would then calculate the overall profits/losses generated by the energies strategy.

If your energies strategy is profitable on the paper then, it's time to demo energies trade and testing if the it is profitable on the real market as it's on paper method. This is the process of testing or back testing a system.

Writing a Trade Journal

Maintain a Energies Journal to keep track of profitable energies trades, & determine why these trades were profitable. And also keep a log of all losing trades, determine why these trades made a loss and the avoid making these same mistakes the next time you trade using your strategy.

Tweak your energies system until you get a good risk to reward ratio, with signals that you generate. Aim for a good risk: reward of 3:1 and a win ratio of above 70% is a good ratio, with good energies money management even a strategy with a win ratio of even 30% i.e. Less than half of your transactions make profit you can still make a profit. You might want to read this topic to know what the table below is all about: Risk : Reward Ratio.

Risk To Reward Ratio Chart of Trade Money Management Strategy - Trading Strategies Methods Explained

Read Trade Money Management Methods Guide

A manual energies system is still the best way to generate energies signals compared to automated energies systems, a manual strategy is a better method and is also much simpler to implement.

However, other traders prefer automated energies trading systems & for those then they can check the information on this page MQL5 Trading EAs & automated energies trading systems.

You can also view our extensive list of energies strategies topics that provides you with various methods of buy & sell technical analysis using a number of diverse technical methods, navigate to the Trading Strategies Section.