Creating a XAGUSD Trading System: Trading Indicator Based XAGUSD Trading System

A Silver System refers to a set of silver rules that you follow to manage your Silver trades. These silver rules will determine when you open a Silver trade & when you will exit. A Silver trade system is created by combining 2 or more technical indicators.

For example, the Stochastic Oscillator can be combined with other indicators to form a trading system. For this example stochastics can be combined with the indicators below to come up with the following trading system.

• RSI
• MACD
• Moving Averages Silver Trading Technical Indicator

Example

Creating a Silver System - Silver Trading System Template Example

So the question is how can one create a silver systems that works and how does one write its rules? Follow the steps below:

Seven steps to creating an technical indicator-based xagusd trading system

To come up with these set of rules for silver we use the following seven steps.

1. Choose your Silver Time-frame

This first step depends on how many hours you want to dedicate to silver trading. Whether you prefer sitting in front of the Desktop computer constantly for several hours analyzing short Silver Trading time frames OR you prefer setting up your silver charts using bigger Silver Trading time frames once or twice a day. Choosing a silver charts timeframe will mainly depend on what type of Silver trader you are.

Silver Trading Chart Time Frames on MT4 Software - MT4 Silver Platform

While testing your new silver trading system you may want to find out about its performance on different Silver Trading chart time frames and then choose the most accurate & profitable Silver Trading chart time frame for you.

2. Select technical indicators to spot a new trend

The goal of a trader is to get into the Silver trade as early as possible and take maximum advantage of xagusd trading price moves.

One of the common ways to spot a new silver trend as fast as possible is to use Moving Averages Indicator. A simple strategy is to use a moving average crossover system that will identify a new xagusd setup opportunity at its earliest stage.

Moving Average Crossover Technique - Silver Trading System

Silver Sell signal & Silver Buy trading signal Generated by Moving Average Crossover Technique

3. Choose additional indicators to confirm the Silver Trading market trend

Once we find a new silver trend we need to use additional xagusd technical technical indicators that will confirm the Silver Trading entry signals and give either a green light for action or save a trader from fake-outs.

To confirm the signals we use RSI & Stochastic Oscillator.

RSI & Stochastic Oscillator Silver Indicator Trading System

4. Finding entry and exit points

Once indicators are chosen so that one indicator gives the signal & another confirms the signal, it is time to enter a Silver trade.

A trader should enter as soon as a signal is generated and confirmed after a candlestick closes.

Aggressive Silver traders enter a transaction immediately without waiting for the current xagusd trading price bar to close.

Other Silver traders wait until the current xagusd trading price bar is closed and then enter the transaction if the Silver trade setup has not changed and the signal remains valid. This method is more considerate and prevents additional false entries and whipsaws.

Generating Trading Signals

Generating Silver Trading Silver Trade Signals

For exits, one can either set an amount he wants to earn per trade or use technical tools that help to set profit goals like Silver Trading Fibonacci Expansion Indicator or set a protective stop loss depending on the Silver Trading market volatility at any given time. Alternatively one can exit when the xagusd trading technical indicators give an opposite signal.

When opening a new Silver trade transaction it's always important to calculate in advance how much you are willing to lose if the Silver Trading transaction goes against you. Although the goal is to create the best silver system in globe, losses are inevitable and therefore being ready to tell where you'll give up and cut your losses before starting a Silver trade is very important.

5. Calculate risks in each Silver trade setup

In Silver Trading you must calculate your risk for each Silver trade. Serious Silver traders will only enter look to open an order it the risk to reward ratio is 2:1 or more.

If you use a high risk to reward ratio like 2:1, you significantly increase your chances of becoming profitable when trading Silver Trading in the long run.

The Risk to Reward Chart below shows you how:

Silver Trading Money Management Reward Risk Chart - Silver Trading

In the first examples of Risk to Reward Ratio, you can see that even if your trading system only won 50% of your open Silver trades, you would still make profit of $10,000. Read more on this topic: Here Silver Trading Money Management Rules and Silver Trading Money Management Methods.

Before opening a new Silver trade, a trader should define the point at which he will close the open Silver trade if it turns to be a losing one. Some traders use Silver Trading Fibonacci Retracement Levels and support and resistance levels. Others just use a pre-determined stop loss to set stop loss silver trading order once they have opened a Silver trade transaction.

6. Write down the systems silver trading rules and follow them

A Silver Trade System refers to a set of silver trading rules that you follow to manage your Silver trades.

The keyword is A SET OF Silver TRADING RULES which you must follow. If you do not follow the rules then you do not even have a silver system in the first place.

The next silver systems lesson shows you an example of how to use above steps to come up with your own Silver Trading online silver trading system:

Next Lesson: Example of Writing Trading Systems Rules

7. Practice on a Silver Trading Demo Account

Without enough Silver trades, you will not be able to realize the true profitability of your trading system.

Once you have your silver trading system rules written, it's time to test and improve your Silver trade system by using it on a Silver demo trading account.

Open a free practice xagusd trading practice account and trade Silver Trading your system to see how well it will respond.

It is strongly recommended to start with a practice xagusd account and practice for at-least for 1 or 2 months so as to gain some practice and experience how the silver trading market works.

Once you start making some decent profit on your Silver Trading demo xagusd trading account you can then try opening a live xagusd trading account and start silver trading with real money.