How to Generate Silver Trading Signals With Silver Strategies

Trading Signals MT4 Indicator Strategy

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

Generating signals is not easy & requires you to have a lot of technical analysis trading knowledge and experience, but the earlier you begin practicing how to generate these silver signals for yourself the better it is for you.

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

The technique of how to practice generating these silver signals as well as how to back test the silver signals on the demo silver account using MetaTrader 4 trading platform is discussed below:

So, How Can a Trader Generate Trade Signals?

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

A system is a combination of one or two or more indicators with written guide-lines of how these technical indicators will generate these silver signals.

Take an example of the simplest system or strategy known as moving average crossover method. A buy silver signal or sell silver signal is generated when there is a crossover of the two moving averages: either a buy silver signal for an upward MA crossover or a sell silver signal for down ward trend.

XAGUSD MT4 Signal Indicator - Trading Signals MT4 Indicator Strategy MA Crossover Strategy

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

Example of Generating MT4 Free Signals - Trading Signals MT4 Indicator Strategy

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

XAGUSD MT4 Signal Indicator - Trading Signals MT4 Indicator Strategy - Buy and Sell Trading Signals

Trading Signals MT4 Indicator Strategy

An example of a simple silver system that works, is one that's a combination of:

• Moving average cross-over strategy
• RSI
• MACD

The written silver rules are:

Generating Signals Strategy System Examples

Trade Rules:

Buy Silver Trading Signal gets Generated when:

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

Sell Silver Trading Signal gets Generated when:

• Both Moving averages going down
• RSI value below 50
• MACD below center-line

Generating Buy and Sell Silver Trades - Examples of a Strategy

Exit Trade Signal

Exit signal is generated when MA, RSI & MACD indicator give a signal in the opposite direction.

The chart time frame to use is 1H chart time frame or 15 minutes silver chart time frame depending on what type of trader you are.

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

Back Testing

Generating Signals with a system is one of the easiest method to trade silver, it is the best way that a silver beginner trader can attempt to determine direction of the market silver trend with a good level of accuracy, and with a little back testing on demo account so as to gradually increase the level of accuracy of this silver signals strategy

The best way to back test a silver strategy is by following these two steps:

1. Paper Trade
2. Demo Trade

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

This is an ancient strategy of testing systems that was used by traditional investors when there was no online silver 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 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 silver market & draw the silver charts on paper, anyway for our paper technique examples, just a sample data of 50 trade transactions is all we need.

A good tool to use to back-test your system is known as the MT4 Silver Step by Step Tool. Found on the MT4 charts toolbar of MetaTrader 4 platform, If you want to find the silver charts toolbar on the MT4 platform it's at the top of MetaTrader 4 trading platform. If it's not: Click View (next to file, tops left corner of MetaTrader 4)>>> Toolbar >>> Charts. Then click the Customize button key >>> Choose Silver Step by Step >>> Click Insert >>> Close.

MT4 Platform Chart ToolBars - How to Trade Silver For New Traders

Silver Trading Step by Step Button for Back Testing Systems Discussed

Once you get this MetaTrader 4 tool you can move your chart backwards, & use this MT4 tool to move the charts silver trading step by step while at the same time testing when your system would have generated either a buy or sell trade transaction, & where you'd have exited the trade, then write-down the amount of profit/loss per trade transaction & out of a sample number of silver transactions you would then calculate the overall profits/losses generated by the strategy.

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

Writing a Silver Trading Journal

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

Read Money Management Strategies Methods Tutorial

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

However, other traders prefer automated systems & for those then they can check the information on this page MQL5 Expert-Advisors & automated systems.

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