4 Example Templates of Gold Strategies
When creating your own system, there are a few things to keep in mind. Your strategy needs to be-able to identify new market trends, while at the same time making sure you do not to get faked out - xauusd whipsaws. The real trick is, once you've created a system that works for you, stick to it. Being disciplined will help you a lot in becoming successful in xauusd.
Before XAUUSD on a real account, you have to figure out what strategy works for you. It's good to know in what chart timeframe you are going to be working in, & how much you're willing to risk once you start xauusd. All these should be factored in, and should be written down within your xauusd plan. A good place to test this plan would be on a free demo demo account. This is where you test your strategies risk free without investing money to determine which strategy is best suited for you.
So, now how can a trader like you create a "good system" or the "best system"?
To create the best xauusd strategy the first thing to do is to define your xauusd objective or goal:
The following examples shows a goal & explains the xauusd guide-lines of how to achieve that goal
Gold System Goals
1.Identify a new trend
Moving average crossover strategy strategy is the most widely used strategy to identify a new trend. Time to open a long or short trade is decided when 2 moving averages indicators cross over or cross under each other.
2.Confirm the new trend
Relative Strength Index(RSI) Indicator & Stochastic Oscillator Indicator are the most commonly used indicators to confirm a trend.
Indicator based System
The best type of a strategy is one that is indicator-based. You'll find it straight forward to generate the signals and thus less error-prone on your part & this will help you to avoid market whipsaws.
There are several things we want to achieve when creating a system:
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry and exit signals.
- Proper XAUUSD Money Management Guides
Accomplishing these 4 goals will result in a profitable strategy that works.
The last piece of info needed, is deciding how aggressive you are going to be when entering & exiting a trade. Those traders who are more aggressive wouldn't wait until chart candlestick closes & would enter as soon as their technical indicators match up. But most traders would wait until the xauusd chart candlestick of the chart time frame they are using has closed, to have more stable signal when entering the market.
To get profits out of market you need to build create your own profitable system: a strategy that will generate profitable signals. You need to have your own strategy that will help you achieve your financial goals. Sometimes the best systems are the ones that you build on your own. No need to keep searching online for best systems or for systems that work, this site provides you with all the tools required to help you and guide you on how to create your own systems.
Below is an example of a trade system based on RSI, MACD & Stochastic.
XAUUSD System - MetaTrader 4 Chart Templates Systems
The system example above is comprised of four technical indicators in total, all of these generate trade signals using different strategies, the Moving Average will generate signals using the MA cross-over strategy shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long & short signals as displayed in the above example. How to generate these signals is discussed in the next tutorial (on the sidebar navigation learn lessons menu under key concepts).
For beginner traders, it is difficult for them to create their own xauusd strategies since they do not have much knowledge about the market. However, this learn site will explain how a beginner trader can create their own free system in just seven easy steps. Best strategy is the one you come up with yourself and learn how to trade the market with it.
The main advantage of creating your own free systems is that you will know how to make profits by yourself - & not rely on other peoples efforts.
In the next lesson located at the side bar navigation learn lessons menu below the xauusd key concepts will show to you how to create a system like that one above, write it's xauusd rules & how to backtest the system on a practice practice trade account before using it on a live account.
Gold MetaTrader 4 Chart Templates Gold Systems
XAUUSD Strategy
The moving average indicator cross over strategy uses two moving averages to generate signals. First Moving average uses a shorter period & the second is a longer period.
Moving Average Cross Over XAUUSD Method - Moving Average Cross Over Strategy
This above strategy is referred to as the moving average cross-over strategy because signals are generated when the 2 averages cross above or below each other.
XAUUSD System Example - Short & Long signal Generated by System
A buy signal or going long trade is generated when shorter moving average indicator crosses above the longer moving average indicator (Both Moving Averages Moving Up).
A sell signal or a going short trade is generated when shorter average indicator crosses below longer moving average indicator (Both Moving Averages Going Down).
XAUUSD MT4 Chart Templates XAUUSD Systems
Stochastic Oscillator indicator can be combined with other indicators to form a trading system.
- RSI indicator
- MACD technical indicator
- Moving Averages indicators
Strategies Example - MetaTrader 4 Chart Templates Systems
Short Signal or Sell Signal
How the short sell signal was generated
From our gold guide-lines the short signal is generated when:
- Both Moving Averages are heading down
- RSI is below 50
- Stochastic heading downwards
- MACD moving downward below centerline
The short signal was generated when all the written rules were met. Exit signal is generated when a signal in the opposite direction is generated.
Good thing about using such a strategy is that we are using different types of indicators to confirm the signals & avoid as many whipsaws as possible in the process.
- Stochastic - xauusd momentum oscillator
- RSI - gold momentum oscillator
- Moving Averages Indicator - trend following indicator
- MACD - trend following oscillator
Based on the chart time frame used - this trading strategy can be used as scalping system when the min charts are used or as a day system when hourly charts are used.
Example 3: System Example
This trading system is fully explained within the xauusd trade plan on the xauusd plan tutorial on this learn web site under the key concepts section located on the right navigation menu.
Chart Time Frame
1 H chart
Indicators that identify a new trend
Moving Average Cross Over Trading Indicators Strategy
Indicators which confirm the market trend
RSI indicator
STOCHASTIC OSCILLATOR indicator
Long Entry - Buy Signal
1. Both MAs(moving averages) moving up
2. RSI above 50
3. Both stochastics going up
Short Entry - Sell Trading Signal
1. Both Moving Average pointing down
2. RSI below 50
3. Both stochastics going down
Exit Trading Signal
1. Moving Average Indicator gives opposite signal
2. RSI gives opposite signal
Money Management in XAUUSD Trading
Stop-Loss - 35 pips
Take Profit Order - 70 pips
Reward to Risk 2:1
Example 4: New Gann Swing Chartist Plan
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator ##1and Gann Trend to form a complete strategy commonly referred to as the - "New Gann Swing Chartist Plan". Within this strategy the Gann Swing Oscillator is used to help determine market swings for trading only within the current trend is shown by the Gann Trend.
Below is the example of New Gann Swing Chartist Plan
The Gann Chartist Plan - Systems - MetaTrader 4 Chart Template System
