MT4 Template Trading System

A Metals Trading System refers to a set of metals rules that you follow to manage your trades. These written metals rules will determine when you open a metals trade and when you will exit. A metals trade system is created by combining two or more metal indicators.

For example, the Stochastic Oscillator technical indicator can be combined with other indicators to form a trading system. For this example - stochastic oscillator can be combined with the metals indicators below to come up with the following trading system.

• RSI indicator
• MACD indicator
• Moving Averages indicators

Example - MT4 Template Trading System Example

Creating a Metals System - Metals Trading System Examples Template

So the question is how can a trader come up with metals trading systems that work like the metal trading system example above and how does one write it's trading rules? to write the metals trading system rules follow steps below.

Seven steps to creating an technical indicator based trading system

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

1. Choose your Chart Time-frame

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

Chart Time Frames in MT4 Platform

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

2. Choose indicators to identify a new metals trend

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

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

Moving Average Crossover Method

Sell metals signal & Buy metals trading signal Generated by Moving Average Crossover Metals Trading Method

3. Choose additional indicators to confirm the metals trend

Once we find a new metals trend we need to use additional indicators that will confirm the entry metals signals and give either a green light for action or save a trader from fake-out whipsaws.

To confirm the metals signals we use RSI indicator and Stochastic Oscillator indicator.

RSI Metal Trading Indicator & Stochastics Oscillator Metals Technical Indicator System

4. Finding metal trading entry and metal trading exit points

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

A trader should enter a metals trade as soon as a metals signal is generated & confirmed after a candlestick closes.

Aggressive traders enter a trade transaction immediately without waiting for the current metals price bar to close.

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

Generating Metals Signals - how to Generate Trading Signals.

Generating Trade Signals

For exits, a trader can either set an amount the wants to earn per trade or use technical metals trading tools that help to set profit goals like Fibonacci expansion tool or set a protective stop loss depending on the metal market volatility at any given time. Alternatively a trader can exit when the technical indicators give an opposite trading signal.

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

5. Calculate risks in each Metal trade setup

In Metals, you must calculate your risk for each trade. Serious traders will only enter and look to open an order if 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 in the long run.

The Risk to Reward Chart below shows you how:

Metals Money Management Reward Risk Chart - Examples Template Trading System

In the first example of Risk to Reward Ratio, you can see that even if your trading system only won 50% of your trades, you would still make profit of $10,000. Interpret more on this metals trading money management metals trading topic: Here Metals Trading Money Management Rules - MT4 Template Trading System and Metals Money Management Methods - Template Trading System Example.

Before opening a new metals trade, a trader should define the point at which they will close the metals trade if it turns to be a losing metals trade. Some traders use Fibonacci retracement levels tool and support and resistance levels. Other traders just use a pre-determined stop loss to set stop loss metals orders once they have opened a metals trade transaction.

6. Write down the metals systems rules and follow them

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

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

The next metals trading systems lesson shows you an example of how to use the above steps to come up with your own Metals online metals trading system:

Next Lesson: Examples of Writing Metals Trade Systems Rules

7. Practice on a Practice Account

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

Once you have your metals trading system rules written, it is time to test and improve your trade system by using it on a demo practice account.

Open a free demo trading account and trade your metals trading system to see how well it will respond.

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

Once you start making some decent profit on your demo metal trading account you can then try opening a live metal trading account and begin trading with real money.