Example Templates

When making your own indices system, there are a couple of things to keep in mind. Your strategy needs to have the ability to identify new Stock Index market trends, while at the same time making sure you don't to get faked out/whipsaws. The real trick is, once you've created a trade system which works for you, stick to it. Being disciplined will help you as a trader a lot in becoming successful in indices trading.

Before trading Indices on a real account, you have to determine what strategy works for you. It's good to know in what chart time frame you're going to be working in, & how much you are willing to risk once you start trading online. All these should be factored in, & should be written within your indices plan. A nice place which to test this plan would be on free demo account. This is where you test out your trade strategies risk-free without investing/depositing money to determine which trading strategy is best fitted for you.

So, what methodology allows a stock indices trader, such as yourself, to construct a "sound trading system" or the "optimal system"?

To come up with a good strategy the first thing to do is to define your objective or goal:

The following examples illustrates a goal & explains the trade rules of how to achieve that objective

Stock Index Trade Goals

1.Identify a new trend

MA crossover method strategy is most oftenly used strategy to identify a new trend. Time to open a buy or sell trade is determined when 2 moving averages indicators cross over or cross under each other.

2.Confirm the new trend

Relative Strength Index(RSI) Indicator & Stochastic Oscillator Technical Indicator are the most often used technical indicators to confirm a trend.

Indicator based System

The best method relies on technical indicators. It makes signals easy to spot. This cuts down on mistakes and helps avoid false market signals.

There are several things we want to achieve when creating a trading system:

Find entry points as early as possible.
Find exit points securing maximum gains.
Avoid fake entry & exit trading signals.
Proper Index Capital Management Guidelines

Accomplishing these 4 aims will result in a profitable strategy which works.

The last piece of info needed, is making a decision how aggressive you're going to be when entering and exiting a trade. Those traders that are more aggressive wouldn't wait until the chart candlestick closes and would enter as soon as their technical indicators match up. But many stock indices traders would wait until the chart candle of the time-frame they're using has closed, to have more stable trading signal when entering the market.

To get profits out of the market you need to develop your own profitable system: a technique/method that will generate profitable trading signals. You need to have your trading strategy that will help you as a trader achieve your financial objectives. Sometimes the best strategies are the ones which you build on your own. No need to keep looking for the best systems or for systems which work, this website provides you with all the trading tools required to help you as a trader & guide you on how to come up with your own trading systems.

Illustrated below is an instance illustration of a machine relying on RSI, MACD and Stochastic.

Making Indicators Based Index System - Example Strategy Templates

Index System - Best MetaTrader 4 Examples Trading Strategies

The strategy example uses four technical indicators. Each creates signals with unique methods. The Moving Average signals come from the crossover shown. RSI, Stochastic, and MACD apply other analysis for buy and sell signals, as in the example. The next topic explains signal creation. Find it in the sidebar under learn courses menu in key concepts.

New traders struggle to build strategies without much market know-how. This site shows beginners how to make a free plan in seven steps. The best strategy is one you create and use to trade.

One key advantage of creating your own free trading strategies is that you will possess the knowledge to generate profits independently without depending on the work of others.

The upcoming indices course, which is located on the sidebar navigation learn lessons menu below the indices key concepts, will teach you how to create a trade system similar to the one mentioned above, how to write its indices rules, and how to backtest the system on a practice trade account before using it on a real account.

4 Explanation Examples of Free Trading Strategies

Example 1: The Moving Average Cross over Strategy

Moving average crossover trading uses two moving averages to spot buy or sell signals. You set one with a shorter period and the other with a longer period.

MA Cross-over System Strategy - Stock Strategies Templates Examples

MA Crossover Method - MA Crossover Strategy

This is the moving average crossover method. Signals happen when two averages cross each other.

Short signal Long signal Generated by Moving Average Cross-over Strategy - Example Strategy Templates

Illustrative System Framework - Acquisition of Short-Term and Long-Term Trading Signals from the System.

A buy trade signal or going long trade is derived/generated when the shorter MA technical indicator crosses above longer MA technical indicator (Both MAs Moving Averages Going and Heading Up).

A sell signal or a going short trade gets generated when shorter average indicator crosses below longer MA indicator (Both MAs Moving Averages Moving Down).

Example 2: Stochastics Trading System

The Stochastic Indicator can be effectively combined with other indicators to develop a comprehensive trading system.

RSI indicator
MACD indicator
MAs indicators

Trading strategy examples and best MetaTrader 4 template ideas.

Stochastic RSI & MACD Indices Strategy - Example Trading System Templates

Short Signal Means Sell Trade Alert

How the short sell Index signal was generated

From our trading guide-lines the short signal is generated when:

Both MAs Moving Averages are heading down
RSI is below 50
Stochastic moving downwards
MACD moving downward below center line

The short signal fires when all listed rules match. The exit comes from an opposite trend signal.

This approach uses various technical indicators. They confirm signals and cut down on false moves.

Stochastic - indices momentum trading indicator
RSI - indices momentum indicator
Moving Averages(MAs) -trend following indicator
MACD -trend following oscillator indicator

This strategy works as scalping on minute charts or as a day system on hourly charts, based on your timeframe.

Example 3: Strategy Example

The complete description of this system is available within the trade plan, specifically in the indices plan course section of this learn indices website, under the key concepts menu located on the right-hand navigation bar.

Chart Time-Frame

1 Hour chart

Indicators that spot a new trend

MA Cross-over Indicators Strategy

Trading Indicators that confirm the trend

RSI

The STOCHASTIC OSCILLATOR indicator

Long Entry - Buy Signal

1. Both Moving Average(moving averages) moving upwards

2. RSI value is above 50

3. Both stochastic oscillators indicators moving up

Short Entry - Sell Trade Signal

1. Both Moving Average MA pointing down

2. RSI is below 50

3. Both stochastic oscillators trading heading down

Exit Signal

1. Moving Average generates in the opposite market trend signal

2. RSI Often Signals Against the Trend

Equity Management in Stock Indices

StopLoss Order - 35 pips

Take-Profit - 70 pips

Reward : Risk 2:1

Example 4: New Gann Swing Trading Chartist Plan

Use the Gann Swing Oscillator with the Gann HiLo Activator and Gann Trend to build the full "New Gann Swing Chartist Trading Plan." The oscillator spots market swings, but only trade them when they match the current trend shown by the Gann Trend.

Displayed Below is examples of New Gann Swing Chartist Trading Plan

Example System Templates - How Can You Analyze/Interpret Strategy Signal?

Gann Chartist Plan - Indices Systems - MetaTrader 4 Template Trade System

Extra Lessons and Courses:

Trade Stock Indices