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How to Generate Gold Trading Signals With Gold Trading Systems

Generating Gold MT4 Free Signals - Gold MT4 Signal Indicator - Gold Trading Signals MT4 Gold Trading Indicator Strategy

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



Generating Gold trading signals is not easy and requires you to have a lot of gold trading technical analysis knowledge and experience, but the earlier you start practicing how to generate these gold trading 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 gold 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 gold trading demo practice account you can the use these gold trading signals on a live Gold trading account.

 

The method of how to practice generating these gold trading signals as well as how to back test the gold trading signals on the demo gold trading account using the MetaTrader 4 gold trading platform is discussed below:

 

So, How Can a Trader Generate Gold 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 Gold trading system is a combination of one or two or more gold trading technical indicators with written gold trading rules of how these gold trading indicators will generate these gold trading 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 trading signal or sell gold trading signal is generated when there is a crossover of the two moving averages; either a buy gold trading signal for an upward moving average crossover or a sell gold trading signal for downward trend.

Example of Generating Gold Trading Signals Using Moving Average Crossover Method

Generating Gold MT4 Free Signals - Gold MT4 Signal Indicator - Gold Trading Signals MT4 Gold Trading Indicator Strategy Moving Average Crossover Method

 

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

Example of Online Gold Trading Systems and Gold Trading Strategies
Example of Generating Gold MT4 Free Signals - Gold MT4 Signal Indicator - Gold Trading Signals MT4 Gold Trading Indicator Strategy


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

 

Generating a Gold Trading Signal - Generating Gold MT4 Free Signals - Gold MT4 Signal Indicator - Gold Trading Signals MT4 Gold Trading Indicator Strategy

Generating Gold MT4 Free Signals - Gold MT4 Signal Indicator - Gold Trading Signals MT4 Gold Trading Indicator Strategy - Buy and Sell Gold Trading Signals

 

 

Gold Trading Systems - Generating Gold MT4 Free Signals - Gold MT4 Signal Indicator - Gold Trading Signals MT4 Gold Trading Indicator Strategy

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

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

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

 

Exit Signal

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

 

The gold trading chart time frame to use is 1 hour gold trading chart time frame or 15 minutes gold trading 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 trading 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 trading 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 gold trading system is one of the easiest method to trade gold, it is the best way that a gold trading beginner can attempt to determine the direction of the gold trading market gold trading 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. Gold Demo Trade

 

Gold Paper Trading- This method of testing a gold trading system involves placing your gold trading system on the gold trading charts, then take the gold trading chart back to a particular date, 3 months back for example, and then using this gold trading chart history to determine where your gold trading strategy would have given buy, sell and exit gold trading signals. Write down these points and the profit per gold trading trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of gold trading 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 trading 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 trading market and draw the gold trading charts on paper, anyway for our paper method example, just a sample data of 50 gold trading trade transactions is all we need.

 

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

MT4 Gold Trading Platform Chart Tool Bars - How To Trade Gold For Beginners

MT4 Chart Tool Bars - Step by Step Button for Back Testing Gold Trading Systems Explained

MT4 Chart Tool Bars - Step by Step Button for Back Testing Gold Trading Systems Explained

 

Once you get this MT4 gold trading tool you can move your gold trading chart backwards, and use this MT4 gold trading tool to move the gold trading charts step by step while at the same time testing when your gold trading system would have generated either a buy or sell gold trading trade transaction, and where you would have exited the gold trading trade transaction, then write down the amount of profit/loss per gold trading 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, its time to demo gold trading 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 gold trading system.

Maintain a Gold Trading Journal to keep track of profitable gold trading trades, and determine why these gold trading trades were profitable. and also keep a log of all losing gold trading trades, determine why these gold trading 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

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 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.

 

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