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