How to Generate Oil Trading Signals With Oil Trading Systems
Generating Crude Oil MT4 Free Signals
The only method of oil is through crude oil trading signals, It is best to learn how to generate these oil signals for yourself, this way you do not have to rely on other crude oil traders to generate them for you.
Generating oil trading signals isn't easy & requires you to have a lot of crude oil technical analysis trading knowledge and experience, but the earlier you begin practicing how to generate these oil signals for yourself the better it's for you.
A good technique of how to practice generating oil trading signals with oil trading systems is to open a free practice Oil demo account & test your oil signals on this practice account risk free without risking your money, then once you have tested your oil strategies and they are profitable on the oil demo practice account you can then use these oil signals on a live crude oil trading account.
The method of how to practice generating these oil signals as well as how to back test the oil signals on the demo oil account using the MT4 platform is discussed below:
So, How Can a Trader Generate Oil Trade Signals?
The best method of generating oil signals is through oil trading systems, You can Learn how to come up with oil trading systems from the lesson how to create Oil Trading Systems on the right navigation menu under the topics Oil Trading Key Concepts.
A crude oil system is a combination of one or two or more oil technical indicators with written oil rules of how these oil indicators will generate these oil signals.
Take an example of the simplest oil system or oil strategy known as moving average crossover oil method. A buy oil signal or sell oil signal is generated when there is a cross-over of the 2 moving averages: either a buy oil signal for an upward moving average crossover or a sell oil signal for downwards trend.
Generating Oil MetaTrader 4 Free Signals - Oil MT4 Signal Indicator – Oil Signals MT4 Oil Trading Indicator Strategy Moving Average Crossover Method
The oil system example shown below shows a oil trading system using the above moving average strategy combined with the RSI and MACD oil indicators to generate buy & sell crude oil trades.
Example of Generating Oil MetaTrader 4 Free Signals - Oil MT4 Signal Indicator – Oil Signals MT4 Oil Trading Indicator Strategy
When it comes to generating buy & sell oil signals, crude oil traders should use simple oil systems to generate these oil signals.
Generating Oil MetaTrader 4 Free Signals - Oil MT4 Signal Indicator – Oil Signals MT4 Oil Technical Indicator Strategy - Buy & Sell Oil Trading Signals
Generating Crude Oil MT4 Free Signals
An example of a simple oil trading system that works, is one that's a combination of:
- Moving average cross-over strategy
- RSI
- MACD
The written oil rules are:
Generating Oil Signals Strategy - Oil Trading System Examples
Oil Trade Rules:
Buy Oil Trading Signal gets Generated when:
- Both Moving averages going up
- RSI value above 50
- MACD above center line
Sell Oil Trading Signal gets Generated when:
- Both Moving averages going down
- RSI value below 50
- MACD below center-line
Generating Buy and Sell Oil Trades – Examples of a Oil Trading Strategy
Exit Crude Oil Trading Signal
Exit trading signal is generated when MA, RSI & MACD oil indicator give a signal in opposite direction.
The oil chart time frame to use is 1 hour oil chart time frame or 15 minutes oil chart time frame depending on what type of oil trader you are.
For a beginner oil trader the above written oil rules will give good buy & sell oil trade signals, the only thing that a oil trader needs to do is to have the discipline to follow the written oil signals rules the exact way they are, and wait for a buy or sell oil trade transaction to be indicated by your oil strategy & trade after the signals have been generated, not before they are generated.
Back Testing
Generating Oil Trading Signals with a oil system is one of the easiest method to trade oil trading , it is the best way that a oil beginner can attempt to determine the direction of the oil market oil trend with a good level of accuracy, and with a little backtesting on practice trading account so as to gradually increase the level of accuracy of this oil trading signals strategy
The best way to back test a crude oil strategy is by following these two steps:
- Oil Trading Paper Trade
- Oil Demo Trade
Oil Trading Paper Trading- This method of testing a oil system involves placing your oil system on the crude oil charts, then take the crude oil chart back to a particular date, 3 months back for example, and then using this oil chart history to determine where your oil strategy would have given buy, sell and exit oil signals. Write down these points and the profit per oil trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of crude oil trades such as 50 paper trades oil transactions and determine if your oil method is overall profitable, the win ratio, the loss ratio and the risk: reward.
This is an ancient method of testing oil systems that was used by traditional investors when there was no online oil markets or computers for that matter, the oil trader would use something like the A3 or A2 paper, graph format paper and draw the trading charts manually (Imagine plotting the charts on your oil 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 oil market and draw the crude oil charts on paper, anyway for our paper method examples, just a sample data of 50 oil trade transactions is all we need.
A good oil tool to use to back test your crude oil trading system is known as the MetaTrader 4 Oil Step by Step Tool. Found in MT4 charts tool bar of MetaTrader 4 platform, If you want to find the charts toolbar on the MT4 platform it is at the top of the MT4 platform. If it is not: Click View (next to file, top left corner of MT4)>>> Toolbar >>> Charts. Then click Customize button key >>> Select Oil Step by Step >>> Click Insert >>> Close.
MetaTrader 4 Oil Platform Chart Tool-Bars - How to Trade Oil Trading For Beginner Traders
MetaTrader 4 Chart Tool-Bars - Oil Trading Step by Step Button Key for Back Testing Oil Systems Discussed
Once you get this MT4 oil tool you can move your oil chart backwards, and use this MetaTrader 4 oil tool to move the crude oil charts oil step by step while at the same time testing when your oil system would have generated either a buy or sell oil trade transaction, & where you would have exited the oil trade transaction, then write down the amount of profit/loss per oil trade transaction and out of a sample number of oil transactions you would then calculate the overall profits/losses generated by the oil strategy.
If your oil strategy is profitable on paper then, it's time to demo oil trading trade & testing if the it is profitable on real market as it's on paper method. This is the process of testing or back-testing a crude oil trading system.
Writing a Crude Oil Trading Journal
Maintain a Oil Journal to keep track of profitable oil trades, & determine why these crude oil trades were profitable. and also keep a log of all losing oil trades, determine why these crude oil trades made a loss and the avoid making these same mistakes the next time you trade using your crude oil trading strategy.
Tweak your oil system until you get a good risk: reward ratio, with the oil 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 oil money management even a oil strategy with a win ratio of even 30% i.e. less than half of your oil 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-:-Reward Ratio Chart of Crude Oil Trading Money Management Strategy – Oil Trading Strategies Described
Read Crude Oil Trading Money Management Methods Course
A manual oil system is still the best way to generate oil signals compared to automated oil systems, a manual oil strategy is a better method and is also much simpler to implement.
However, other traders prefer automated oil trading systems & for those then they can check the information on this page MQL5 Oil EAs and automated oil trading systems.
You can also view our extensive list of oil strategies topics that provides you with various methods of buy & sell technical analysis using a number of diverse technical methods, navigate to the Oil Trading Strategies Section.
