{"id":9943,"date":"2022-10-14T06:49:01","date_gmt":"2022-10-14T06:49:01","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9943"},"modified":"2022-10-14T06:49:01","modified_gmt":"2022-10-14T06:49:01","slug":"build-your-trading-system-in-3-steps","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/14\/build-your-trading-system-in-3-steps\/","title":{"rendered":"Build Your Trading System in 3 Steps"},"content":{"rendered":"\n

Now that you\u2019ve learned the basics of technical analysis. Let\u2019s now combine all this information and build a simple trading system.<\/p>\n\n\n\n

This should give you an idea of what you should be looking for when you develop your own forex trading system.<\/p>\n\n\n\n

This system is a moving average crossover<\/strong> system, which uses moving averages to determine whether to go long or short.<\/p>\n\n\n\n

Additional technical indicators are also used for confirmation before entering a trade.<\/p>\n\n\n\n

You\u2019ll learn to use these various technical indicators to establish specific \u201ccrystal clear\u201d entry and exit<\/strong> levels.<\/p>\n\n\n\n

The trading system can be built in 3<\/strong> simple steps:<\/p>\n\n\n\n

  1. Define your time frame<\/li>
  2. Determine your entry trigger(s)<\/li>
  3. Determine your exit trigger(s)<\/li><\/ol>\n\n\n\n

    Trading Setup<\/h2>\n\n\n\n
    • Trade on daily<\/strong> chart (swing trading)<\/li>
    • 5 SMA<\/strong> applied to the close<\/li>
    • 10 SMA<\/strong> applied to the close<\/li>
    • Stochasti<\/strong>c (14,3,3)<\/li>
    • RSI<\/strong> (9)<\/li><\/ul>\n\n\n\n

      Trading Rules<\/h2>\n\n\n\n

      Entry Rules<\/h3>\n\n\n\n

      Enter LONG<\/strong> if:<\/p>\n\n\n\n

      • The 5 SMA crosses above the 10 SMA and both Stochastic lines are heading up (do not enter if the Stochastic lines are already in the overbought territory)<\/li>
      • RSI is greater than 50<\/li><\/ul>\n\n\n\n

        Enter SHORT<\/strong> if:<\/p>\n\n\n\n

        • The 5 SMA crosses below the 10 SMA and both Stochastic lines are heading down AND (do not enter if the Stochastic lines are already in oversold territory)<\/li>
        • RSI is less than 50<\/li><\/ul>\n\n\n\n

          Exit Rules<\/h3>\n\n\n\n
          • Exit when the 5 SMA crosses the 10 SMA in the opposite direction of your trade OR if RSI crosses back to 50<\/li>
          • Exit when trade hits stop loss of 100 pips<\/li><\/ul>\n\n\n\n

            If the daily chart is too slow for you, you can try experimenting with different time frames.<\/p>\n\n\n\n

            Keep in mind though that the faster the time frame, the higher likelihood for \u201cfalse positive\u201d trades. These are trades that meet the rules for entry but where you end up getting stopped out.<\/p>\n\n\n\n

            Remember:<\/strong> A trading system is only effective if it is followed!<\/p>\n\n\n\n

            You need to have the discipline to stick to the rules!<\/p>\n\n\n\n

            Okay, let\u2019s take a look at some charts and see this baby in action\u2026<\/p>\n\n\n\n

            \"Build<\/figure>\n\n\n\n

            <\/p>\n","protected":false},"excerpt":{"rendered":"

            Now that you\u2019ve learned the basics of technical analysis. Let\u2019s now combine all this information and build a simple trading system. This should give you an idea of what you should be looking for when you develop your own forex trading system. This system is a moving average crossover system, which uses moving averages to determine whether […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[831],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9943"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9943"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9943\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}