I've been looking for the best Robot for Gold
trading and recently I have tested one that shows really fantastic performance average of $500 per day, if you trade a complete 1 ounce of Gold and in this video I will share
the strategy with you on a trading platform, if you want to trade it manually and as well, I will give
you the Robot for free at the end of the video so you will be able to place it on MetaTrader
and test it automatically, as well I have a complete guide on how to do that, you can do it
all for free. So if you're a fan of Algorithmic trading or if you want to learn Algorithmic
trading that would be really suitable video for you and now let me tell you about that strategy
because it is really interesting one on M1 chart, which means that it is kind of a Scalping
strategy and for the beginners that means that we enter the market, we take quick profits and we
are out without risking a lot from our capital but when it comes to risking it really depends on
how much you are trading with and what proportion of your risk capital you are putting into
the trade.
So I would suggest you never risk more than 2 to 5%, but I'm not
a financial advisor, as well this video has just educational and entertainment purposes. So
always make your own decisions when it comes to trading. Now straight to the point, I will share
with you my trading screen and I have here the Trading View platform where I have Gold on M1
chart. And the first indicator that I will add is the Bollinger bands, so I will go to indicators
and I will search for Bollinger bands and here it is. Now by default, we have Period 20 and
deviation 2, but I will click on the Settings and I will change from 20 to 32 and the Deviation, I will
change to 2.8, okay later I will show you how I know exactly that these are the best parameters.
So
I will click on Ok and you see that the Bollinger bands just open a little bit, this is because
the deviation is higher, so the Bollinger band has plenty of applications, but what you can notice
from the first glance is that whenever there is a movement or a trend, the bands open and they go
away from each other when the market goes sideways the bands get closer and the entry rule here is
that, we will buy or we will go long whenever the price goes below the lower band and after that
it gets inside the bands again.
For example, right over here, you can see that the price went below
the bands and after that it went inside the bands but for the signal to be true, we need to see a bar
opening below the bands and on the opening of the next bar, we are taking the trade. So for example,
right over here and I think this is the most recent example, now actually that is the most
recent example, so let's have a look at these two, right over here we have the price going below the
bands and we have a bar opening below the band on the opening of this bar, we should enter right
in here. Now when is the exit, we exit with an indicator called Standard Deviation, I will again
search for that indicator, it is called Standard Deviation and here it is, I will click on the
first one that shows as a result and by default again we have length of 20, but I will change
that and instead of 20, I will use length of 37. Here we go and I will click on Ok.
So this is
a line below the chart, that goes a little bit over 0 and if I increase it a little bit, I will
put one horizontal line at level 4, here we go 402, I want it to be exactly at 4actually I
can right-click to Settings and I will change the coordinates to 4 and there we go. So we will
exit the trade whenever the Standard Deviation crosses the 4 level upwards and goes downward,
so it should go up and go down again you can see that if I zoom out, this happens on very extreme
conditions or in other words, when there is really a huge volatility and right in this example, let's
see what happened here, we have the short trade and for shorting, obviously we need to see the
opposite, price going above the upper band of the Bollinger bands and then going in. So
we can see right here that we have a bar that opened above the upper band and on
the opening of next one, right over here we should be selling. Let me put one vertical line
as well, so at this point we have a sale signal, the price goes up and down and with that extreme
situation, you can see that the Standard Deviation goes above the 4 and we should take the profit
at this zone.
So this is really a simple strategy, there is no Stop Loss or Take Profit, if price
goes below the lower band and on the opening of next bar, if the bar is still below the band,
we should buy and the opposite is on the other side. Now what happens if we buy and there is an
opposite signal to sell, we close the buy trade and we open the sell trade or we reverse the trade and
this is very important in trading because I have to tell you that what happens usually beginners
fall in love with the trade right they believe for example, Crypto or Bitcoin will go up and
they buy it and even they see everything on the opposite side, they see the market crashing
they still believe it will go up and they are not shorting it. So same thing with Gold or any other
asset, if you see the opposite signal you have to sell it, it is the strategy that you follow and if
you want to avoid the emotions you have to follow the strategies very strictly.
The best way to do
that is with the Robot, this is why I will attach the Robot down in the description you can download
it for the strategy that I described in this video and you can test it on MetaTrader if you don't
know how to do that, there is a complete guide that I have for recorded, I'll put it in
the corner I will put it in the description so you can test it yourself, automatically with
a Robot on MetaTrader because this is where Algorithmic trading works best for the moment
and I told you that at the end of the video I will show you the statistics of that strategy
I'll bring EA studio where I'm analyzing the strategy, it's a professional software that
I'm using but you don't need it because I have attached the Robot down in the description.
So here
is the performance the profit per day is 524.87 if you are trading a complete lot and you
can see that I'm testing this strategy for the last 1 month and a half or this is 50,000 bars and I have tested the strategy 288 times and we have a very steady profit line, there
are some declines but with every strategy there are losing trades that's why the curve line goes
up and down, it's not straight profitable line and from 288 trades if I click on the report
and I go to stats info you will see that we had maximum 4 consecutive losses and
the drawdown was 33% but this is because I selected to use one lot in a $10,000 account if I decrease it to 0.1 and I click on Accept, then you will see
that the drawdown will be just 3%, so it really depends on how much you are trading
with and in what account, so always make sure you keep a good risk money management, okay don't risk
a lot from your account, this is the strategy guys it works really nice and very simple, there is
a very nice balance chart that I hope will last longer and if you think this is not the right
strategy for you, there is another one right over here, if you have found that video useful I'll be
super happy, if you smash the like button, subscribe for more go grab the free Robot to test it
yourself and I wish you a wonderful day take care.
