How to Generate Gold Trading Signals with Gold Trading Systems

Generating XAUUSD MetaTrader 4 Free Signals

The only method of gold trading is through xauusd trading signals, It is best to learn how to generate these gold signals for yourself, this way you do not have to rely on other xauusd traders to generate them for you.

Generating gold trading signals is not easy and requires you to have a lot of xauusd trading analysis knowledge and experience, but the earlier you start practicing how to generate these gold signals for yourself the better it is for you.

A good method of how to practice generating gold trading signals with gold trading systems is to open a free practice Gold demo xauusd trading account and test your gold trading signals on this practice account risk free without risking your money, then once you have tested your gold trading strategies and they are profitable on the xauusd trading demo practice account you can then use these gold trading signals on a live xauusd trading account.

The method of how to practice generating these gold signals as well as how to back test the gold trading signals on the demo gold trading account using the MT4 platform is discussed below:

So, How Can a Trader Generate XAUUSD Trade Signals?

The best method of generating gold trading signals is through gold trading systems, You can Learn how to come up with gold trading systems from the lesson how to create Gold Trading Systems on the right navigation menu under the topics Gold Key Concepts.

A xauusd trading system is a combination of one or two or more gold indicators with written gold trading rules of how these gold indicators will generate these gold signals.

Take an example of the simplest gold trading system or gold trading strategy known as moving average crossover gold trading method. A buy gold signal or sell gold signal is generated when there is a crossover of the two moving averages; either a buy gold signal for an upward moving average crossover or a sell gold signal for downward trend.

Generating XAUUSD MetaTrader 4 Free Signals - XAUUSD MetaTrader 4 Signal Indicator - Gold Trading Signals MetaTrader 4 Gold Indicator Strategy Moving Average Crossover Method

The xauusd trading system example illustrated and explained below shows a gold trading system using the above moving average strategy combined with the RSI and MACD gold indicators to generate buy and sell xauusd trades.

Example of Generating XAUUSD MetaTrader 4 Free Signals - XAUUSD MetaTrader 4 Signal Indicator - Gold Trading Signals MetaTrader 4 Gold Indicator Strategy

When it comes to generating buy and sell xauusd trading signals, xauusd traders should use simple gold trading systems to generate these gold signals.

Generating XAUUSD MetaTrader 4 Free Signals - XAUUSD MetaTrader 4 Signal Indicator - Gold Trading Signals MetaTrader 4 Gold Indicator Strategy - Buy and Sell Gold Trading Signals

Generating XAUUSD MetaTrader 4 Free Signals

An example of a simple gold trading system that works, is one that is a combination of:

• Moving average crossover strategy
• RSI
• MACD

The written gold trading rules are:

Generating Gold Trading Signals Strategy - Gold Trading System Examples

Gold Trade Rules:

Buy Gold Trading Signal is Generated when:

• Both Moving averages going up
• RSI value above 50
• MACD above center line

Sell Gold Trading Signal is Generated when:

• Both Moving averages going down
• RSI value below 50
• MACD below center-line

Generating Buy and Sell Gold Trades - Example of a Gold Trading Strategy

Exit Signal

Exit signal is generated when MA, RSI and MACD gold indicator give a signal in the opposite direction.

The xauusd chart time frame to use is 1 hour xauusd chart time frame or 15 minutes xauusd chart time frame depending on what type of gold trader you are.

For a beginner gold trader the above written gold trading rules will give good buy and sell gold trade signals, the only thing that a gold trader needs to do is to have the discipline to follow the written gold trading signals rules the exact way they are, and wait for a buy or sell gold trade transaction to be indicated by your gold trading strategy and trade after the signals have been generated, not before they are generated.

Back Testing

Generating Gold Trading Signals with a xauusd trading system is one of the easiest method to trade gold , it is the best way that a gold beginner can attempt to determine the direction of the xauusd market trend with a good level of accuracy, and with a little back testing on demo practice account so as to gradually increase the level of accuracy of this gold trading signals strategy

The best way to back test a gold trading strategy is by following these two steps:

1. Gold Paper Trade
2. XAUUSD Demo Trade

Gold Paper Trading- This method of testing a gold trading system involves placing your xauusd trading system on the gold charts, then take the gold chart back to a particular date, 3 months back for example, and then using this gold chart history to determine where your gold trading strategy would have given buy, sell and exit xauusd trading signals. Write down these points and the profit per gold trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of xauusd trades such as 50 paper trades gold trading transactions and determine if your gold trading method is overall profitable, the win ratio, the loss ratio and the risk:reward.

This is an ancient method of testing gold trading systems that was used by traditional investors when there was no online gold markets or computers for that matter, the gold trader would use something like the A3 or A2 paper, graph format paper and draw the trading charts manually (Imagine plotting the charts on your gold trading platform by hand every day or every hour, would you be ready to do that? I doubt) Those investors were hardworking than most, some were so used that they still continue to paper trade the online gold market and draw the gold charts on paper, anyway for our paper method example, just a sample data of 50 gold trade transactions is all we need.

A good gold trading tool to use to back test your xauusd trading system is known as the MetaTrader 4 Gold Trading Step by Step Tool. Found on the MT4 charts toolbar of MetaTrader 4 platform, If you want to find the charts toolbar on the MetaTrader 4 platform it is at the top of the MetaTrader 4 platform. If it is not: Click View (next to file, top left corner of MetaTrader 4)>> Toolbar >> Charts. Then click the Customize button >> Select Gold Trading Step by Step >> Click Insert >> Close.

MetaTrader 4 Gold Trading Platform Chart Tool Bars - How to Trade Gold for Beginners

MetaTrader 4 Chart Tool Bars - Gold Trading Step by Step Button for Back Testing Gold Trading Systems Explained

Once you get this MetaTrader 4 gold trading tool you can move your gold chart backwards, and use this MetaTrader 4 gold trading tool to move the gold charts step by step while at the same time testing when your gold trading system would have generated either a buy or sell gold trade transaction, and where you would have exited the gold trade transaction, then write down the amount of profit/loss per gold trade transaction and out of a sample number of gold trading transactions you would then calculate the overall profits/losses generated by the gold trading strategy.

If your gold trading strategy is profitable on the paper then, it's time to demo gold trade and testing if the it is profitable on the real market as it is on paper method. This is the process of testing or back testing a xauusd trading system.

Writing a Gold Trading Journal

Maintain a Gold Trading Journal to keep track of profitable gold trades, and determine why these xauusd trades were profitable. And also keep a log of all losing gold trades, determine why these xauusd trades made a loss and the avoid making these same mistakes the next time you trade using your gold trading strategy.

Tweak your gold trading system until you get a good risk: reward ratio, with the gold trading signals that you generate. Aim for a good risk: reward of 3:1 and a win ratio of above 70% is a good ratio, with good gold trading money management even a gold trading strategy with a win ratio of even 30% i.e. less than half of your gold trading transactions make profit you can still make a profit. You might want to read this topic to know what the table below is all about: Risk : Reward Ratio.

Risk to Reward Ratio Chart of Gold Trading Money Management Strategy - Gold Trading Strategies Explained

Read Gold Trading Money Management Strategies Tutorial

A manual gold trading system is still the best way to generate gold trading signals compared to automated gold trading systems, a manual gold trading strategy is a better method and is also much simpler to implement.

However, other traders prefer automated gold trading systems and for those then they can check the information on this page MQL5 Gold Expert Advisors and automated gold trading systems.

You can also view our extensive list of gold trading strategies topics that provides you with various methods of buy and sell technical analysis using a number of diverse technical methods, navigate to the Gold Trading Strategies Section.