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MT4 Template Gold Trading System

A Gold Trading System refers to a set of gold trading rules that you follow to manage your xauusd trades. These written gold trading rules will determine when you open a gold trade and when you will exit. A gold trade system is created by combining two or more xauusd trading indicators.

For example, the Stochastic Oscillator indicator can be combined with other gold indicators to form a xauusd trading system. For this example - stochastic oscillator can be combined with the gold indicators below to come up with the following  xauusd trading system.

  • RSI indicator

  • MACD indicator

  • Moving Averages indicators

Example - MT4 Template Gold Trading System Example

MT4 Template XAUUSD Trading System

Creating a Gold Trading System - Gold Trading System Trading Example

So the question is how can a gold trader come up with gold trading systems that work like the xauusd trading system example above and how does one write it's gold trading rules? to write the gold trading system trading rules follow the steps below.

Seven steps to creating an indicator based xauusd trading system

To come up with these set of gold trading rules we use the following seven steps.

1. Choose your Gold Trading Chart Time Frame

This first step depends on how many hours you want to dedicate to gold trading. Whether you prefer sitting in front of the computer constantly for several hours analyzing short xauusd trading chart time frames OR you prefer setting up your gold charts using bigger xauusd trading chart time frames once or twice a day. Choosing a xauusd trading chart time frame will mainly depend on what type of gold trader you are.

MT4 Template XAUUSD Trading Systems

Gold Trading Chart Time Frames on MT4 Gold Trading Software

While testing your new gold trading system you may want to find out about its performance on different xauusd trading chart time frames and then choose the most accurate and profitable xauusd trading chart time frame for you.

2. Choose indicators to identify a new gold trend

The goal of a gold trader is to get into the trade as early as possible and take maximum advantage of xauusd price moves.

One of the common ways to spot a new gold trend as fast as possible is to use Moving Averages Indicator. A simple gold trading strategy is to use a moving average crossover system that will identify a new trading opportunity at its earliest stage.

Moving Average Crossover Method

Sell XAUUSD Trading Signal and Buy xauusd trading signal Generated by Moving Average Crossover Method

Sell gold signal and Buy gold signal Generated by Moving Average Crossover Gold Trading Method

3. Choose additional gold indicators to confirm the gold trend

Once we find a new gold trend we need to use additional indicators that will confirm the entry gold signals and give either a green light for action or save a gold trader from fake-outs.

To confirm the gold trading signals we use RSI indicator and Stochastic Oscillator indicator.

RSI XAUUSD Indicator and Stochastic Oscillator XAUUSD Indicator System Template Example

RSI XAUUSD Indicator and Stochastic Oscillator Gold Indicator System


4. Finding xauusd trading entry and xauusd trading exit points

Once gold indicators are chosen so that one gold indicator gives the trading signal and another indicator confirms the trading signal, it is time to enter a gold trade.

A Gold trader should enter a gold trade as soon as a gold signal is generated and confirmed after a candlestick closes.

Aggressive gold traders enter a gold trading transaction immediately without waiting for the current xauusd price bar to close.

Other gold traders wait until the current xauusd price bar is closed and then enter the gold trade transaction if the trade setup has not changed and the gold signal remains valid. This method is more considerate and prevents additional false entries and gold trading whipsaws.

Generating Gold Trading Signals - how to Generate Gold Trading Signals.

MT4 Template XAUUSD Trading Systems

Generating Gold Trade Signals

For exits, a gold trader can either set an amount he wants to earn per trade or use technical gold trading tools that help to set profit goals like Fibonacci expansion tool or set a protective stop loss depending on the xauusd market volatility at any given time. Alternatively a gold trade can exit when the gold technical indicators give an opposite trading signal.

When opening a new gold trade transaction it is always important to calculate in advance how much you are willing to lose if the gold trade transaction goes against you. Although the goal is to create the best gold trading system in the world, losses are inevitable and therefore being ready to tell where you will give up and cut your losses before starting a gold trade transaction is very important.

5. Calculate risks in each xauusd trade setup

In Gold, you must calculate your risk for each gold trade. Serious gold traders will only enter and look to open an order if the risk to reward ratio is 2:1 or more.

If you use a high risk to reward ratio like 2:1, you significantly increase your chances of becoming profitable in the long run.

The Reward to Risk Chart below shows you how:

Example Template XAUUSD Trading System

Gold Trading Money Management Reward Risk Chart - Example Template Gold Trading System

In the first example of Risk to Reward Ratio, you can see that even if your gold trading system only won 50% of your gold trades, you would still make a profit of $10,000. Read more on this gold trading money management gold trading topic: Here Gold Trading Money Management Rules - MT4 Template Gold Trading System and Gold Trading Money Management Strategies - Template Gold Trading System Example.

Before opening a new gold trade, a gold trader should define the point at which they will close the gold trade if it turns to be a losing gold trade. Some traders use Fibonacci retracement levels tool and support and resistance levels. Other gold traders just use a pre-determined stop loss to set stop loss gold orders once they have opened a gold trade transaction.

6. Write down the gold trading systems rules and follow them

A Gold Trade System refers to a set of rules that you follow to manage your xauusd trades.

The keyword is ASET OF TRADING RULES which you must follow. If you don't follow the gold trading rules then you don't even have a gold trading system in the first place.

The next gold trading systems lesson shows you an example of how to use the above steps to come up with your own Gold online gold trading system:

Next Lesson: Example of Writing Gold Trade Systems Rules

7. Practice on a Demo Account

Without enough trades, you will not be able to realize the true profitability of your xauusd trading system.

Once you have your gold trading system rules written, it is time to test and improve your gold trade system by using it on a demo practice account.

Open a free demo practice account and trade your gold trading system to see how well it will respond.

It is strongly recommended to start with a demo xauusd trading account and practice for at least for 1 or 2 months so as to gain some practice and experience how the xauusd market works.

Once you start making some decent profit on your demo xauusd trading account you can then try opening a live xauusd trading account and start trading with real money.


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