Hello! I am glad to see you on Investlb.com website where I share with you some simple and interesting strategies based on 1-2 indicators. As I have emphasized before, there is no universal tactic for any currency pair. Each indicator works specially on separate timeframe and works best only on a certain currency pair. In my articles I share with you proven tools that may not bring in the “Golden mountain”, but will help not to lose the Deposit. The risk of trading on these tactics is minimum
Strategy for trading with gold in Forex
Before I paid attention to only the major currency pairs. Today you will meet a slightly different tactic – strategy of gold trading in Forex, which is based on the high volatility of the metals market. In other words, we catch a strong trend and enter the market.
The advantage of the strategy is that there is no need to be at the computer. Arrange the order as described below and periodically check the position.
Trading conditions:
- Currency pair – XAU/USD;
- timeframe – 24 hours;
- trading terminal – Metatrader 4.
It is noteworthy that the strategy for gold trading in Forex does not require any indicators.
Conditions for opening a position: at 00.00 ЕЕТ, put 2 pending orders, after the closing of daily candle, of the following types:
- Buy Stop on maximum level of the closed daily candle “+” 100 points;
- Sell Stop at the minimum level closed daily candles “-” 100 points.
If the value of the candle High-Low less than 1000 items – do not enter the market. If triggered during the day one order, the second must not be removed. After 24 hours, remove the pending orders that did not work.
Do not forget to insure the item: stop loss is set at the level of the opposite order, but not more than 1800 points:
- fold-over Buy Stop – set a stop loss on the Sell Stop level (“minimum” – 100 points);
- for turn-down Sell Stop – set stop-loss to the level of the Buy Stop (maximum – 100 points).
Exiting the market to achieve revenue of 250 points (at this level, move the stop loss to breakeven). In the case where income is already partially guaranteed. If you’re lucky, you’ll be able to put the squeeze position to the end, closing it in 23.30-00.00 (Eastern European time.
In conclusion, some recommendations:
- if by the end of the day (22-23.00) the price is approaching one of the pending orders, I recommend to delete it before it will work, because for the remaining 1-2 hours there will not be adequate profits;
- the volatility of gold during the day is around 1500 points. Therefore, if you notice that the profit already made 1000 points, close the position, as trend reversal is probable;
- stop losses will be triggered rarely, but the loss should not be afraid, because one profitable trade will cover several loss-making.
Strategy for trading gold on Forex is quite conservative, but can serve as a basic for those who are trading in multiple assets.
