Setup Your System in Six Steps
My “So Easy It’s Ridiculous” System
In this section I will give you an idea of what a trading system should look like. This should give you an idea of what you should be looking for when you develop your system.
Trading Setup
- Trade on daily chart (swing trading)
- 5 EMA applied to the close
- 10 EMA applied to the close
- Stochastic (10,3,3)
- RSI (14)
Trading Rules
- Enter long if:
- The 5 EMA crosses above the 10 EMA and both stochastic lines are heading up (do not enter if the stochastic lines are already in the overbought territory)
- RSI is greater than 50
- Enter short if:
- The 5 EMA crosses below the 10 EMA and both stochastic lines are heading down AND (do not enter if the stochastic lines are already in oversold territory)
- RSI is less than 50
- Exit when the 5 EMA crosses the 10 EMA in the opposite direction of your trade OR if RSI crosses back to 50
Okay, let's take a look at some charts and see this baby in action...
« Previous Next »Forex Training Class Lessons in 11th Grade: Create Your Own Trading System
- Can You Handle the Truth?
- Six Steps to Setting Up Your System
- Setup Your System in Six Steps
- My ’So Easy It’s Ridiculous’ System
- Summary of Trading Systems
