How to Generate Trading Signals With Oil Strategies

Generating Crude Oil MetaTrader 4 Free Signals

The only method of oil is through crude trading signals, It is best to learn how to generate these signals for yourself, this way you do not have to rely on other traders to generate them for you.

Generating oil trading signals isn't easy & requires you to have a lot of crude oil analysis trading knowledge and experience, but the earlier you begin practicing how to generate these signals for yourself the better it's for you.

A good technique of how to practice generating oil trading signals with trading systems is to open a free practice demo account & test your oil signals on this practice account risk free without risking your money, then once you have tested your oil strategies and they are profitable on the practice account you can then use these signals on a live crude account.

The method of how to practice generating these signals as well as how to back test the signals on the demo oil account using the Meta Trader 4 platform is discussed below:

So, How Can a Trader Generate Trade Signals?

The best strategy of generating oil signals is through trading systems, You can Learn how to come up with oil systems from the lesson how to create Trading Systems on the right navigation menu under the topics Oil Trade Key Concepts.

A crude oil system is a combination of one or 2 or more indicators with written oil rules of how these indicators will generate these signals.

Take an example of the simplest oil system or oil strategy known as MA cross-over oil method. A buy oil signal or sell oil signal is generated when there is a cross-over of the 2 moving averages: either a buy oil signal for an upward MA cross-over or a sell oil signal for downward trend.

Generating Oil MetaTrader 4 Free Signals - Oil Signals MT4 Oil Indicator Strategy MA Crossover Strategy

The oil system example shown below shows a trading system using the above moving average strategy combined with the RSI and MACD indicators to generate buy & sell crude trades.

Example of Generating Oil MetaTrader 4 Free Signals - Oil Signals MT4 Oil Indicator Strategy

When it comes to generating buy & sell oil signals, crude traders should use simple oil systems to generate these signals.

Generating Oil MetaTrader 4 Free Signals - Oil Signals MT4 Indicator Strategy - Buy & Sell Trading Signals

Generating Crude Oil MetaTrader 4 Free Signals

Example of a simple oil system that works, is one that's a combination of:

• Moving average crossover strategy
• RSI
• MACD

The written oil rules are:

Generating Signals Strategy System Examples

Oil Trade Rules:

Buy Oil Trading Signal gets Generated when:

• Both Moving averages going up
• RSI value above 50
• MACD above center line

Sell Trading Signal gets Generated when:

• Both Moving averages going down
• RSI value below 50
• MACD below centerline

Generating Buy and Sell 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 time frame to use is 1 hour chart time frame or 15 minutes chart time frame depending on what type of trader you are.

For a starter trader the above written oil rules will give good buy & sell oil signals, the only thing that a trader needs to do is to have the discipline to follow the written signals rules the exact way they are, and wait for a buy or sell trade transaction to be indicated by your oil strategy & trade after the signals have been generated, not before they are generated.

Back Testing

Generating Trading Signals with a oil system is one of the easiest method to trade oil trading, it is the best way that a beginner can attempt to determine the direction of the market oil trend with a good level of accuracy, and with a little backtesting on practice trading account so as to gradually increase the level of accuracy of this trading signals strategy

The best way to back test a crude oil strategy is by following these 2 steps:

1. Oil Trading Paper Trade
2. Oil Demo Trade

Oil Trading Paper Trading - This method of testing a oil system involves placing your oil system on the 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 oil strategy would have given buy, sell and exit oil 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 crude trades such as 50 paper trades transactions and determine if your oil method is overall profitable, the win ratio, the loss ratio and the risk: reward.

This is an ancient strategy of testing oil systems which was used by traditional traders when there was no online 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 oil 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 market and draw the charts on paper, anyway for our paper method examples, just a sample data of 50 trade transactions is all we need.

A good oil tool to use to back test your crude trading system is known as the Meta Trader 4 Oil Step by Step Tool. Found in MT4 charts tool bar of MetaTrader 4 platform, If you want to find the charts toolbar on the MT4 platform it is at the top of MT4 platform. If it is not: Click View (next to file, top left corner of MetaTrader 4)>>> Toolbar >>> Charts. Then click Customize button key >>> Select Oil Step by Step >>> Click Insert >>> Close.

Meta Trader 4 Oil Platform Chart Tool-Bars - How to Trade Oil For New Traders

Meta Trader 4 Chart Tool-Bars - Oil Trading Step by Step Button Key for Back Testing Oil Systems Discussed

Once you get this Meta Trader 4 tool you can move your oil chart backwards, and use this Meta Trader 4 tool to move the charts oil step by step while at the same time testing when your oil system would have generated either a buy or sell trade transaction, and where you'd have exited the trade, then write down the amount of profit/loss per oil trade transaction and out of a sample number of oil transactions you would then calculate the overall profits/losses generated by the oil strategy.

If your oil strategy is profitable on paper then, it's time to demo oil trading trade & testing if the it is profitable on real market as it's on paper method. This is the process of testing or back-testing a system.

Writing a Oil Trade Journal

Maintain a Oil Journal to keep track of profitable 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 oil system until you get a good risk:reward ratio, with 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 oil money management even a strategy with a win ratio of even 30% i.e. Less than half of your 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-:-Reward Ratio Chart of Trade Money Management Strategy - Oil Strategies Described

Read Oil Trade Money Management Methods Course

A manual oil system is still the best way to generate signals compared to automated oil systems, a manual strategy is a better method and is also much simpler to implement.

However, other traders prefer automated trading systems & for those then they can check the information on this page MQL5 Oil EAs and automated trading systems.

You can also view our extensive list of oil strategies topics that provides you with various methods of buy & sell analysis using a number of diverse technical methods, navigate to the Oil Strategies Section.