Trading Gold

   This is a simple gold trading system that provides about 2 or 3 trade signals a week but with a very low 37% failure rate. In the first 3 months of 2009, despite the financial turmoil and market uncertainty, we only had 11 losses out of 33 trades and made 1,460 pips clear profit. High pip profits are not necessary if we have a high success rate. With the confidence this system brings in selecting profitable trades, we can trade more per pip quite safely. Signals are completely unambiguous and we have a conservative 100 pip take profit and a 70 pip stop loss (50 pips is less volatile conditions). One pip equals a 10 cent move on the price of gold.

    As with the normal SaneFX methods, we only trade signal arrows where the TCCI is the same colour to the left and right of the signal. Trades are closed when the stop or limit is hit or when the TCCI changes colour.

      For those who prefer more action, it is possible to trade off the 30 minute chart in exactly the same way (minus the Trade Confirmation indicator) but with a reduced 30 tick stop and limit. There will always be several trades a day but the success rate varies with the conditions so it is less reliable than using the 4 hour charts but can often be very profitable.

     It is also possible to scalp gold using the 1 minute or 5 minute charts in the same way as with Forex.