The Gold Trading Strategy
Rule-based. Emotion-free. Applied only to XAU/USD.
1. Timeframe Cascade (Top-Down Analysis)
Trend Direction
Determine the macro bias. Is price above or below 20 EMA? Is structure making higher highs / higher lows? Never trade against the weekly trend.
Setup Formation
Wait for price to reach a key level (support/resistance, Fibonacci, EMA confluence). Look for reversal candle patterns.
Entry Trigger
Execute only when 4H shows confirmation: EMA crossover, RSI divergence, or a strong rejection candle at the level.
2. Entry Rules (ALL must be met)
Only buy if weekly is bullish. Only sell if weekly is bearish. No counter-trend trades.
Entry must be at a confluence zone: Fibonacci + EMA + previous S/R. No mid-range entries.
Wait for a strong rejection candle: bullish engulfing, hammer, or morning star at support.
Daily RSI must be between 30–70 for trend trades. Avoid entries when RSI is >75 (overbought) or <25 (oversold exhaustion).
Entry candle volume should be above 20-period average. No signals on thin/low-volume candles.
Before entering, calculate R:R. If TP1 is not at least 2.5× the stop loss distance, skip the trade.
3. Exit Rules
First resistance level or 1.5× risk. Close 40% to secure profit.
Second resistance or 2.5× risk. Move stop to breakeven after TP1.
Trailing stop. Let winners run. Exit on 4H close below 20 EMA.
Below the last swing low (buy) or above last swing high (sell). Fixed — never widened.
4. Risk Management Rules
Never risk more than 1% of total capital on a single trade.
Maximum 3% total portfolio risk at any time.
If account drops 5% in a week, stop trading for 7 days. Review.
Lots = (Capital × 0.01) ÷ (SL_pips × pip_value)
After 2 consecutive losses, take a 24h break. Mandatory.