Examples Templates
When creating your own system, there are a couple of factors to keep in mind. Your strategy needs to be-able to identify new market trends, while at the same time making sure you don't to get faked out/whipsaws. The real trick is, once you have developed a trade system which works for you, stick to it. Being disciplined will help you a lot in becoming successful in xauusd.
Before trading Gold on a live account, you've to figure out what strategy works for you. It's good to know in what chart timeframe you are going to be working in, & how much you're willing to risk once you begin trading online. All these should be factored in, and should be written down within your xauusd plan. A good place to test this gold plan would be on a free demo account. This is where you test your strategies risk-free without depositing money to determine which trading strategy is best suited for you.
So, now how can a xauusd trader like you create a "good system" or the "best system"?
To create a good strategy the first thing to do is to define your main objective or goal:
The following examples illustrates a goal & explains the guide-lines of how to achieve that goal
Trading System Goals
1.Identify a new trend
Moving average crossover method trading strategy is the most often used method to identify a new trend. Time to open a long or short trade is determined when 2 MAs indicators cross over or cross under each other.
2.Confirm the new trend
RSI(RSI) Indicator and Stochastic Technical Indicator are the most commonly used indicators to confirm a trend.
Indicator based Trading Strategy
The best type of a method is one that is indicator-based. You'll find it straight forward to generate the 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 system:
- Find entry points as early as possible.
- Find exit points securing maximum gains.
- Avoid fake entry and exit signals.
- Proper Trade Money Management Rules
Finishing these 4 trading aims will result in a profitable trading strategy that works.
The last piece of information needed, is deciding how aggressive you are going to be when entering & exiting a trade. Those traders that are more aggressive wouldn't wait until the chart candlestick closes & would enter as soon as their indicators match up. But many traders would wait until the xauusd chart candlestick of the chart time frame they are using has closed, to have more stable signal when entering the market.
To get profits out of the market you as a trader need to build your own profitable system: a technique that will generate profitable signals. You need to have your own trading strategy which will help you achieve your financial goals. Sometimes the best systems are the ones which you build on your own. No need to keep searching online for the best systems or for systems which work, this web site provides you with all the tools required to help you & tutorial you on how to create your own systems.
Below is example of a trade system depending on RSI, MACD and Stochastic.
Gold System - Best MT4 Examples Systems
The system example above is comprised of four trading indicators in total, all of these generate trade signals using various different techniques, the Moving Average will generate trading signals using the MA crossover method shown, the RSI indicator, Stochastic indicator and MACD indicator use different technical analysis to generate the long and short signals as cited in the above example. How to generate these trading signals is discussed in the next topic (on sidebar navigation study trading tutorials menu under key concepts).
For beginner traders, it's difficult for them to create their own trading strategies since they do not have much knowledge about the market. However, this learn website will explain how a beginner trader can create their own free system in just 7 easy guide-lines. Best strategy is one you create yourself & learn how to trade the market with it.
The main advantage of creating your own free systems is that you'll know how to make profits by yourself - and not rely on other peoples efforts.
In the next gold course located at the sidebar navigation learn lessons menu below the gold key concepts will explain to you how to create a trade system like that one above, write it's xauusd rules & how to back test the trade system on a practice practice trade account before using it on a live account.
Best MetaTrader 4 Examples Systems
Gold Strategies
The MA indicator cross over method uses two moving averages to generate trading signals. First Moving average uses a shorter period & the second is a longer period.
MA Crossover Technique - MA Crossover Method
This above method is referred to as the moving average crossover method because signals get generated when the two averages cross above or below each other.
Trading System Examples - Short & Long signal Generated by Trading Strategy
A buy trade 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 trading signal or a going short trade is generated when the shorter average indicator crosses below longer moving average indicator (Both Moving Averages Moving Down).
Best MetaTrader 4 Examples Systems
Stochastic indicator can be combined with other trading indicators to make a trade system.
- RSI xauusd indicator
- MACD xauusd indicator
- MAs technical indicators
Systems Examples - Best MetaTrader 4 Templates Example Systems
Short Signal or Sell Trading Signal
How the short sell Gold signal was generated
From our gold rules the short signal is generated when:
- Both MAs are heading down
- RSI is below 50
- Stochastic heading downwards
- MACD heading downwards below center line
Short trading signal was generated when all the written rules were met. The exit signal is given when a trade signal in the opposite market direction is generated.
Good thing about using such a method is that we are using different types of indicators to confirm the signals and avoid as many trading whip-saws as possible in the process.
- Stochastic - xauusd momentum oscillator
- RSI - gold momentum oscillator
- MAs XAUUSD TradingTechnical Indicator - trend following trading indicator
- MACD - trend following indicator
Based on the chart time frame used - this strategy can be used as Gold scalping system when the minute charts are used or as a day system when hourly charts are used.
Example 3: Strategy Example
This system is fully described within the trade plan on the trade plan lesson on this learn web site under the key concepts section located on the right navigating menu.
Chart Time Frame
1H gold chart
Trading Indicators that spot a new trend
MA Crossover Indicators Strategy
Indicators that confirm the trend
RSI indicator
STOCHASTIC OSCILLATOR indicator
Long Entry - Buy Trade Signal
1. Both MAs(moving averages) pointing upwards
2. RSI above 50
3. Both stochastics heading up
Short Entry - Sell Trading Signal
1. Both Moving Average pointing down
2. RSI below 50
3. Both stochastics moving down
Exit Signal
1. MA Indicator gives opposite signal
2. RSI generates opposite signal
Money Management in Gold Trading
StopLoss - 35 pips
Take-Profit - 70 pips
Reward to Risk 2:1
Best MetaTrader 4 Templates Example Systems
The Gann Swing Oscillator is meant to be used in combination with the Gann HiLo Activator & Gann Trend to form a complete trade strategy commonly known as the - "New Gann Swing Chartist Plan". Within this methodology the Gann Swing Oscillator Technical is used to help determine market swings for trading only within the current market trend is illustrated by the Gann Trend.
Below is the examples of New Gann Swing Chartist Plan
Gann Chartist Plan - Gold Systems - MetaTrader 4 Template Trading Strategy
More Lessons & Topics:
- How Can I Gold Set Buy Stop XAU/USD Order on MT5 Platform?
- One of the Best Forex Broker for Gold for All Trade Methods
- Different Types of Gold Accounts
- How to Add Trading XAUUSD EA Bots in MT4 Software
- How to Spot XAU USD Divergence in Gold Chart & How to Trade Divergence in Gold Chart
- Chart Trade Pattern Explained with Examples
- Technical XAUUSD Indicators Used for Setting Stop Loss Orders
- XAU USD 20 Pips a Day Strategy
