How to Generate Signals with XAUUSD Systems
Generating XAUUSD MT4 Free Signals
The only method of xauusd is through gold trading signals, It is best to learn how to generate these xauusd signals for yourself, this way you do not have to rely on other traders to generate them for you.
Generating xauusd signals is not easy & requires you to have a lot of gold technical analysis trading knowledge & experience, but the earlier you start practicing how to generate these xauusd signals for yourself the better it is for you.
A good method of how to practice generating xauusd trading signals with xauusd trading systems is to open a free practice XAUUSD Trading practice account and test your xauusd signals on this practice account risk free without risking your money, then once you have tested your xauusd strategies & they are profitable on the xauusd demo practice account you can then use these xauusd signals on a live gold trading account.
The technique of how to practice generating these xauusd signals as well as how to back test the xauusd signals on the demo xauusd account using the MetaTrader 4 platform is discussed below:
So, How Can a Trader Generate XAUUSD Trade Signals?
The best method of generating xauusd signals is through xauusd systems, You can Learn how to come up with xauusd trading systems from the lesson how to create XAUUSD Systems on the right navigation menu under the tutorials XAUUSD Trading Key Concepts.
A gold system is a combination of one or two or more technical indicators with written xauusd rules of how these indicators will generate these trading signals.
Take an example of the simplest xauusd system or xauusd strategy known as moving average crossover xauusd method. A buy signal or sell signal is generated when there is a crossover of the two moving averages: either a buy signal for an upward moving average crossover or a sell signal for downward trend.
Generating XAUUSD Trading MetaTrader 4 Free Signals - XAUUSD Trading MetaTrader 4 Signal Indicator - XAUUSD Signals MT4 Indicator Strategy Moving Average Crossover Method
The xauusd system example shown below shows a xauusd trading system using the above moving average strategy combined with the RSI and MACD indicators to generate buy and sell gold trades.
Example of Generating XAUUSD Trading MetaTrader 4 Free Signals - XAUUSD Trading MetaTrader 4 Signal Indicator - XAUUSD Signals MT4 Indicator Strategy
When it comes to generating buy and sell signals, gold traders should use simple xauusd systems to generate these trading signals.
Generating XAUUSD Trading MetaTrader 4 Free Signals - XAUUSD Trading MetaTrader 4 Signal Indicator - XAUUSD Signals MT4 Indicator Strategy - Buy and Sell XAUUSD Signals
Generating XAUUSD MT4 Free Signals
An example of a simple xauusd system that works, is one that is a combination of:
- Moving average crossover strategy
- RSI
- MACD
The written xauusd rules are:
Generating XAUUSD Signals Strategy - XAUUSD System Examples
XAUUSD Trade Rules:
Buy XAUUSD Signal is Generated when:
- Both Moving averages going up
- RSI value above 50
- MACD above center line
Sell XAUUSD Signal is Generated when:
- Both Moving averages going down
- RSI value below 50
- MACD below centerline
Generating Buy & Sell XAUUSD Trades - Examples of a XAUUSD Strategy
Exit Trading Signal
Exit signal is generated when MA, RSI & MACD indicator give a signal in opposite direction.
The chart timeframe to use is 1 hour chart timeframe or 15 minutes chart timeframe depending on what type of trader you are.
For a beginner trader the above written xauusd rules will give good buy and sell xauusd signals, the only thing which a trader needs to do is to have the discipline to follow the written signals rules the exact way they are, and wait for a buy or sell trade transaction to be indicated by your xauusd strategy and trade after the signals have been generated, not before they are generated.
Back Testing
Generating XAUUSD Signals with a xauusd system is one of the easiest method to trade xauusd trading , it is the best way that a beginner can attempt to determine the direction of the market xauusd trend with a good level of accuracy, and with a little back testing on demo trading account so as to gradually increase the level of accuracy of this xauusd trading signals strategy
The best way to back test a gold strategy is by following these 2 steps:
- XAUUSD Trading Paper Trade
- XAUUSD Trading Demo Trade
XAUUSD Trading Paper Trading - This method of testing a xauusd system involves placing your xauusd system on the gold charts, then take the chart back to a particular date, 3 months back for example, and then using this chart history to determine where your xauusd strategy would have given buy, sell and exit xauusd signals. Write down these points and the profit per trade transaction on a piece of paper and then calculate the total profit after you have recorded a good number of gold trades such as 50 paper trades transactions and determine if your xauusd method is overall profitable, the win ratio, the loss ratio and the risk: reward.
This is an ancient method of testing xauusd systems which was used by traditional traders when there was no online xauusd markets or computers for that matter, the trader would use something like the A3 or A2 paper, graph format paper and draw the charts manually (Imagine plotting the charts on your xauusd 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 xauusd market & draw the gold charts on paper, anyway for our paper technique example, just a sample data of 50 trade transactions is all we need.
A good xauusd tool to use to back test your gold trading system is known as the MT4 XAUUSD Step by Step Tool. Found on the MT4 charts toolbar of MT4 software, If you want to find the charts toolbar on the MT4 platform it is at the top of MT4 platform. If it is not: Click View (next to file, top left corner of MetaTrader 4)>>> Tool Bar >>> Charts. Then click the Customize button >>> Choose XAUUSD Step by Step >>> Click Insert >>> Close.
MT4 Platform Chart Tool Bars - How to Trade XAUUSD Trading for Beginners
MT4 Chart ToolBars - XAUUSD Step by Step Button for Back Testing XAUUSD Systems Explained
Once you get this MetaTrader 4 tool you can move your xauusd chart backwards, & use this MT4 tool to move the gold charts xauusd step by step while at the same time testing when your xauusd system would have generated either a buy or sell trade transaction, & where you would have exited the trade, then write down the amount of profit/loss per xauusd trade transaction & out of a sample number of xauusd transactions you would then calculate the overall profits/losses generated by the xauusd strategy.
If your xauusd strategy is profitable on the paper then, it is time to demo xauusd trading trade and testing if the it's profitable on real market as it is on paper technique. This is the process of testing or backtesting a xauusd system.
Writing a Gold Trading Journal
Maintain a XAUUSD Journal to keep track of profitable xauusd trades, and determine why these trades were profitable. And also keep a log of all losing trades, determine why these trades made a loss and the avoid making these same mistakes the next time you trade using your strategy.
Tweak your xauusd system until you get a good risk: reward ratio, with the xauusd 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 xauusd money management even a strategy with a win ratio of even 30% i.e. Less than half of your 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 Money Management Strategy - XAUUSD Strategies Explained
Read Gold Money Management Strategies Methods Tutorial
A manual xauusd system is still the best way to generate xauusd signals compared to automated xauusd systems, a manual strategy is a better method and is also much simpler to implement.
However, other traders prefer automated xauusd trading systems and for those then they can check the information on this page MQL5 Gold Expert Advisors & automated xauusd trading systems.
You can also view our extensive list of xauusd strategies topics that provides you with various methods of buy and sell technical analysis using a number of diverse technical methods, navigate to the Learn Strategies Section.
