Silver Strategy Rules: Write Down The Rules and Follow Them

We shall use the previous steps to create a written silver system that generates the trade signals shown below using the 1 hour chart. We shall use the 1H chart to write the rules of this trading strategy - xagusd system.

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

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

Example of Trading System below:

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

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

Choose your Chart Timeframe - 1H xagusd chart

Choose Technical Indicators which spot a new trend - Moving Average Cross-over 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 Silver rules

Test the system on a xagusd trading Demo Practice Account trading account

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

Writing Trading System Silver Rules

Example of How to Write The Best Trading System Rules

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

Generate Buy and Sell Trading Signals using Written System Rules

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