Stock Index Trading System Rules: Write Down The Rules and Follow Them

We shall use the 1 hour Indices trading chart to write the rules of this Stock Indices trading strategy - Stock Index trading system.

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

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

Example of Stock Index Trading System below:

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

You can come up with the above Stock Indices trading system using the steps below:

Step 1:

Choose your Chart Time Frame - 1 hour Indices trading chart

Step 2:

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

Step 3:

Choose Indicators that confirm the trend - RSI, Stochastic

Step 4:

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

Step 5:

Calculating risks in each trade - 20 pips

Step 6:

Write down the Stock Indices trade system Stock Indices rules

Step 7:

Test the Stock Indices trading system on a Stock Indices demo practice account

After using these steps we come up with the written Stock Indices trading system rules below.

Writing Stock Index Trading System Rules

Example of How Do You Write the Best Stock Index Trading System Rules

This Stock Indices trading system produces the trading signals as shown below. Using these Stock Indices trading rules traders can determine when to enter & exit Stock Index trades.

Generate Buy & Sell Signals using Written Stock Indices Trading System Rules

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