Oil System Rules: Write Down The Rules and Follow Them

We shall use the previous steps to come up with a written oil trading system that generates the trade signals shown below using the 1 hour crude oil trading chart. We shall use the 1 hour oil chart to write the rules of this oil strategy - crude oil trading system.

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

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

Example of Oil Trading System below:

Writing Rules of a Oil Trading System- 1 hour Crude Oil Chart Timeframe Trading

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

Choose your Chart Timeframe - 1 hour crude oil chart

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

Choose Indicators that confirm the oil trend - RSI, Stochastic

Finding entry & 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 oil trade system Oil Trading rules

Test the oil system on a oil demo trading account

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

Writing System Oil Trading Rules

Examples of How to Write The Best Oil Trading System Rules

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

Generate Buy and Sell Oil Trading Signals using Written Oil Trading System Rules

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