How to Generate Metals Trading Signals With Metals Trading Systems
Generating Metals MT4 Free Signals
The only method of metals trading is through metal trading signals, It is best to learn how to generate these metals signals for yourself, this way you do not have to rely on other traders to generate them for you.
Generating metals signals isn't easy & requires you to have a lot of metal trading analysis knowledge & experience, but the earlier you begin practicing how to generate these metals signals for yourself the better it's for you.
A good technique of how to practice generating metals trading signals with metals trading systems is to open a free practice Metals demo metal trading account & test your trading signals on this practice account risk free without risking your money, then once you have tested your metals trading strategies & they are profitable on the metal trading demo practice account you can then use these metals trading signals on a live metal trading account.
The method of how to practice generating these metals signals as well as how to back test the metals trading signals on the demo metals account using MT4 metal trading platform is discussed below:
So, How Can a Trader Generate Metal Trade Signals?
The best method of generating metals trading signals is through metals systems, You can Learn how to come up with metals trading systems from the lesson how to create Trading Systems on the right navigation menu under the tutorials Metals Key Concepts.
A metal system is a combination of one or two or more metals indicators with written trading rules of how these indicators will generate these metals trade signals.
Take an example of the simplest trading system or strategy known as moving average crossover method. A buy metals signal or sell metals signal is generated when there is a cross-over of the two moving averages: either a buy metals signal for an upward moving average crossover or a sell metals signal for downward trend.
Generating Metal Trading MetaTrader 4 Free Signals - Metals Trading Signals MetaTrader 4 Technical Indicator Strategy Moving Average Crossover Method
The trading system example illustrated and explained below shows a metals trading system using the above moving average strategy combined with the RSI and MACD indicators to generate buy & sell metal trades.
Example of Generating Metal Trading MetaTrader 4 Free Signals - Metals Trading Signals MetaTrader 4 Technical Indicator Strategy
When it comes to generating buy & sell metal trading signals, metal traders should use simple metals trading systems to generate these metals trade signals.
Generating Metal Trading MetaTrader 4 Free Signals - Metals Trading Signals MetaTrader 4 Technical Indicator Strategy - Buy and Sell Trading Signals
Generating Metals MT4 Free Signals
An example of a simple metals system that works, is one that's a combination of:
- Moving average crossover strategy
- RSI
- MACD
The written metals trading rules are:
Generating Metals Signals Strategy System Examples
Metals Trade Rules:
Buy Metals Signal is Generated when:
- Both Moving averages going up
- RSI value above 50
- MACD above center line
Sell Metals Signal is Generated when:
- Both Moving averages going down
- RSI value below 50
- MACD below center-line
Generating Buy and Sell Metals Trades - Examples of a Strategy
Exit Trading Signal
Exit trading signal is generated when MA, RSI & MACD indicator give a signal in opposite direction.
The chart timeframe to use is 1 hour chart timeframe or 15 minutes metal chart timeframe depending on what type of trader you are.
For a beginner metals trader the above written trading rules will give good buy & sell metals trade signals, the only thing which a trader needs to do is to have the discipline to follow the written metals trading signals rules the exact way they are, and wait for a buy or sell trade transaction to be indicated by your metals trading strategy & trade after the signals have been generated, not before they are generated.
Back Testing
Generating Trading Signals with a trading system is one of the easiest method to trade metals , it is the best way that a metals trading beginner trader can attempt to determine direction of the market trend with a good level of accuracy, and with a little backtesting on demo trading account so as to gradually increase the level of accuracy of this metals trading signals strategy
The best way to back test a metals strategy is by following these two steps:
- Paper Trade
- Metal Trading Demo Trade
Metals Paper Trading - This method of testing a metals system involves placing your trading system on the metals charts, then take the chart back to a particular date, 3 months back for example, and then using this chart history to determine where your metals trading strategy would have given buy, sell and exit trading signals. Write down these points and the profit per trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of metal trades such as 50 paper trades metals trading transactions and determine if your trading method is overall profitable, the win ratio, the loss ratio and the risk:reward.
This is an ancient method of testing metals systems which was used by traditional investors when there was no online metals markets or computers for that matter, the trader would use something like the A3 or A2 paper, graph format paper and draw the charts manually (Imagine plotting the charts on your metals trading platform by hand every day or every hour, would you be ready to do that? I doubt) Those investors were hardworking than most, some were so used that they still continue to paper trade the online metals market and draw the metals charts on paper, anyway for our paper method examples, just a sample data of 50 trade transactions is all we need.
A good metals tool to use to back-test your metal trading system is known as the MT4 Metals Step by Step Tool. Found on the MT4 metal charts toolbar of MetaTrader 4 metal trading platform, If you want to find the metals charts toolbar on the MT4 platform it is at the top of MetaTrader 4 metal trading platform. If it is not: Click View (next to file, tops left corner of MT4)>>> Tool-bar >>> Charts. Then click Customize button key >>> Select Metals Step by Step >>> Click Insert >>> Close.
MetaTrader 4 Metals Platform Chart Tool-Bars - How to Trade Metals Trading For Beginners
MetaTrader 4 Metals Chart Tool Bars - Metals Step by Step Button Key for Back Testing Metals Systems Discussed
Once you get this MetaTrader 4 tool you can move your metals chart backwards, and use this MT4 tool to move the charts step by step while at the same time testing when your metals trading system would have generated either a buy or sell trade transaction, & where you would have exited the trade, then write down the amount of profit/loss per metals trade transaction and out of a sample number of metals trading transactions you would then calculate the overall profits/losses generated by the trading strategy.
If your metals strategy is profitable on the paper then, it is time to demo metal trade & testing if the it's profitable on real market as it's on paper technique. This is the process of testing or backtesting a trading system.
Writing a Metals Trading Journal
Maintain a Metals Journal to keep track of profitable metals trades, and determine why these trades were profitable. And also keep a log of all losing trades, determine why these trades made a loss and the avoid making these same mistakes the next time you trade using your strategy.
Tweak your metals trading system until you get a good risk: reward ratio, with the metals trading signals that you generate. Aim for a good risk: reward of 3:1 and a win ratio of above 70% is a good ratio, with good metals trading money management even a metals trading strategy with a win ratio of even 30% i.e. Less than half of your metals trading transactions make profit you can still make a profit. You might want to read this topic to know what the table below is all about: Risk : Reward Ratio.
Risk to Reward Ratio Chart of Metals Trading Money Management Strategy - Metals Trading Strategies Described
Read Metals Money Management Methods Tutorial
A manual metals trading system is still the best way to generate metals signals compared to automated trading systems, a manual strategy is a better method & is also much simpler to implement.
However, other traders prefer automated metals trading systems & for those then they can check the information on this page MQL5 Metals Expert-Advisors & automated metals trading systems.
You can also view our extensive list of metals trade strategies topics that provides you with various methods of buy & sell technical analysis using a number of diverse technical methods, navigate to the Metals Trading Strategies Section.
