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