What is a good Stop Loss Gold Order Setting Percent?

Strategies of Setting Stop Loss Gold Orders in XAUUSD Trading

Traders using a gold trading strategy must have mathematical calculations that calculate where the Stop Loss Gold Order should be placed.

A Gold trader can also place a stop loss order according to the technical indicators used to set these stop loss xauusd trade orders.

Certain technical indicators use mathematical equations to calculate where the stop loss orders should be set so as to provide an optimal exit point.

These xauusd technical indicators can be used as the basis for setting these stop loss xauusd trade orders.

Traders also place these stop loss orders according to a predetermined risk to reward ratio. This method of setting stop loss orders is dependent upon certain mathematical equations. For example a ratio of 20 pips stop loss can be used by a Gold trader if the trade has the potential to make 40 pips in profit; this is a risk reward ratio of 2:1

Other traders just use a predetermined percentage of their total gold trading account balance.

To set a stop loss order it is best to use one of the following percentage based methods:

Setting Stop Loss Gold Order based on Percentage of Trading Account Balance

This stop loss setting method is based on the percent of gold trading account balance that the gold trader is willing to risk.

If a gold trader is willing to risk 2% of account balance then the gold trader determines how far he will set the order level based on the open trade position size that he has bought or sold.

Example:

If a gold trader has a $10,000 trading account and is willing to risk 2%

• If a gold trader buys 0.1 contract or 0.1 Standard Lots

  1 pip = $1

  Then setting at 2% - 2% Stop Loss Gold Order Setting Percent

  2% is $ 200

  200 /1 = 200 pips

  Stop loss = 200 pips

• If a gold trader buys 0.5 contracts or 0.5 Standard Lots

  1 pip = $5

  Then setting at 2% - 2% Stop Loss Gold Order Setting Percent

  2% is $ 200

  200 /5 = 40 pips

  Stop loss = 40 pips

• If a gold trader buys 1 contract or 1 Standard Lot

  1 pip = $10

  Then setting stop loss at 2% - 2% Stop Loss Gold Order Setting Percent

  2% is $ 200

  200 /10 = 20 pips

  Stop loss = 20 pips

How to Set Stop Loss Gold Orders based on the Gold Trading Account Balance Percent Method - What is a good Stop Loss Gold Order Setting Percentage