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, now how can a stock indices trader like you create a "good trading system" or "best 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 long or short 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 Indicator are the most often used technical indicators to confirm a trend.

Indicator based System

Best type of a method is one that is indicator-based. You will find it straight forward to generate the trade signals & thus less error-prone on your part and this will help you as a trader to avoid market whipsaw 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 deciding 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 indicators match up. But many stock indices traders would wait until the chart candle of the time-frame they are 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 own trading strategy that will help you as a trader achieve your financial goals. Sometimes the best systems 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 create your own trading systems.

Illustrated Below is an example illustration of a system depending on RSI, MACD and Stochastic.

Making Indicators Based Index System - Example Strategy Templates

Index System - Best MetaTrader 4 Examples Trading Strategies

The system example above is comprised of four indicators in total, all of these generate trade signals using various techniques, the Moving Average MA will generate trade signals using the MA crossover method shown, the RSI, Stochastic indicator and MACD indicator use different analysis to generate the long and short signals such as displayed and shown in the above example. How to generate these trade signals is discussed in next topic (on sidebar navigation learn courses menu under key concepts).

For new traders, it's difficult for them to create their own trading strategies since they do not have a lot of knowledge about the market. However, this learn indices website will explain how a beginner trader can create their own free system in just seven easy guidelines. Best strategy is the one you come up with yourself and learn how to trade the market with it.

Main benefit of developing your own free trading systems is that you'll know how to make profits by yourself - & not rely on other peoples efforts.

In the next indices course located on the sidebar navigation learn lessons menu below the indices key concepts will show to you how to create a trade system like the one above, write it's indices rules & how to back test the system on a practice practice trade account before using it on real account.

4 Explanation Examples of Free Trading Strategies

Example 1: The Moving Average Cross over Strategy

Moving average indicator cross over trading strategy uses two moving averages to generate signals. First Moving Average uses a shorter period & the second is a longer period.

MA Cross-over System Strategy - Stock Strategies Templates Examples

MA Crossover Method - MA Crossover Strategy

This above method is referred to as the moving average crossover method because stock signals get generated/derived when 2 averages cross above/below each other.

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

System Example Template - Short & Long signal Generated by Trading System

A buy trade signal or going long trade is derived/generated when the shorter moving average indicator crosses above longer moving average 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 moving average indicator (Both MAs Moving Averages Moving Down).

Example 2: Stochastics Trading System

Stochastic Oscillator Technical technical indicator can be combined with other indicators to make a trading system.

RSI indicator
MACD indicator
MAs indicators

Trading Strategies Examples - Best MetaTrader 4 Templates Example Systems

Stochastic Oscillator RSI & MACD Indices Strategy - Example Trading System Templates

Short Signal or Sell Trading Signal

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 was generated when all the written indices rules were met. The exit trading signal is derived and generated when a trade signal in the opposite market trend trade direction is generated.

The good thing about using such a method is that we're using different types of indicators to confirm the signals & avoid as many whipsaws as possible in process.

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

Based on the chart time frame used - this trading strategy can be used as scalping system when the minute trading charts are used or as a Indices day system when hourly trading charts are used.

Example 3: System Example

This system is fully described within the trade plan on the indices plan course on this learn indices website under the key concepts section located on the right navigating menu.

Chart Time-Frame

1 Hour chart

Indicators that spot a new trend

MA Cross-over Indicators Strategy

Trading Indicators that confirm the trend

RSI

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 generates in the opposite market trend signal

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

The Gann Swing Oscillator Indicator is meant to be used in combination together with the Gann HiLo Activator and Gann Trend to form a complete strategy commonly referred to as the - "New Gann Swing Chartist Trading Plan". Within this method the Gann Swing Oscillator is used to help identify market swings for trading only within the current market trend is illustrated 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

More Lessons & Courses:

Trade Stock Indices