I want a vacation. Hence, I will be trading the ultimate GOLD SCALPING STRATEGY all week to see if I can make enough money to be on the beach for one month.
You will learn the comprehensive strategy in this article. Then, I’ll use it all week to discover if it can fund a month-long holiday.
PS: This is the place where I want to go on vacation:
You can see it’s a stunning location with a private pool, beach, and everything you’d typically need, so I need this vacation in my life.
Gold Scalping Strategy
For a more immersive experience, watch the full video of this strategy here:
I’ve discussed everything step, sharing results from the first week and how you can use the strategy too.
As usual, I’ll love to show you a little trading action before I get into this strategy. Hence, here’s the first gold trade I took this week:
I placed this trade a few days ago (at the close of the up candle) with a buy indicator that made it effortless. Then, the price went in my direction, smashing my take profit to bank me $2,630 on 379 pips.
Scrolling over, you can see a sell trade (at the right) would’ve also been valid:
However, I was probably walking my dog, Honey, yet I don’t blame her for missing this huge win.
As always, we are inside my live trading account with Hankotrade:
If I keep scrolling, you can see there was one Gold Trade place today:
I scalped $2,630 (379 pips) on a seven-lot size trade. Hopefully, this continues the rest of the week because then I’ll be able to go on that fantastic vacation.
However, enough about me, as this is about you. Let me teach you how to use this trading strategy so you can make some money too.
How To Make Money Trading the Gold Scalping Strategy
Take these simple steps to install and get this gold scalping strategy to get this started:
1. Go to the TradingView website and log in.
2. Select the five-minute timeframe because we’re scalping, and want that low timeframe.
3. Go to the candles tab and change your standard ones to Heikin Ashi. It looks weird, but it’s what you want.
4. We want to install two indicators, the first being the Zero Lag Smooth Moving Average (ZLSMA). Click on the indicators search menu to appear on your chart. When it does, double-click the line and simply change the Length in the input section to 50.
5. The second indicator is the Chandelier Exit. Click it after your search, and you’ll see your buy and sell indicators.
However, it may be a bit overwhelming for first-time users, so take these steps to clean the chart, making it much smoother.
i. Double-click the Chandelier Exit Indicator
ii. On the Inputs tab, change the ATR period to “1” and the ATR multiplier to “two”2.”
iii. In the Style section, uncheck every box except the Buy and Sell Label. Then, change the Buy Label’s position to “Below bar” and the sell label to “Above bar.”
Finally, it’s all setup, and we are good to go!
Disclaimer: If you still insist on trading in the Forex market, I’ve discussed some of 2023’s best forex bots you should check out.
Using This Strategy
The entry rules of this strategy are very, very simple.
To place a buy trade, you’re just looking for the buy indicator for a go-ahead. For that to be valid, it has to be above the 50-period moving average.
For a sell trade, you want to see the sell indicator like the one in the image below. Again, it must be below the 50-period moving average to be valid.
It’s really that simple.
Scrolling back, you can see one sell signal available, yet it is invalid because the price is above the 50-day moving average.
The same goes for this buy signal right here:
It is also not valid because it is below the 50-period moving average.
Hence, all you’re seeking is for the sell indicator to be below the 50-period moving average and the buy indicator to be above the 50-period moving average. Then you’re placing your trade.
For exit rules, let’s take a case scenario here:
The sell indicator is below the moving average, so we’ll open our trade at the end of that candle. Set the stop loss at a recent swing high, as shown below.
For our take profit, we simply close the trade when a candle closes on the other side of the moving average.
Thus, in this example, we would’ve exited the trade at the level shown in the image below, which would’ve been a 1.79 risk-reward ratio.
You could have also had a better stop loss if you wanted to pull it to a more recent candle to produce a risk-reward ratio of around 3:1.
Now you know the rules of this gold scalping strategy I’ll use all week.
If you need to understand it better, restart this article’s section, following the screenshots meticulously. Don’t forget to share this content with others when you get it.
Live Trading Examples With the Gold Scalping Strategy
Let me share some of my live trades with the strategy, so you can get them down and take them to your charts. It’ll tell whether I can pay for my dream vacation or not.
First Trade (Buy)
I already showed you this trade, but let’s look at it again now that you know the rules.
The first thing I did after seeing my buy indicator was to ensure it was above the 50-period moving average, making it valid. Hence, I entered the trade, setting my stop loss below the recent swing low, and subsequently closed it at a level where the candles closed on the other side of the moving average.
As discussed, this trade banked me 379 pips ($2,630).
Second Trade (Buy)
This is a new example, but it looks like the last one, right?
We have the buy indicator above the 50-period moving average. Hence, we can enter the trade.
After setting my entry-level, I place my stop loss below the recent swing low. Then my take profit is when we get the closed candle outside the moving average.
That’s a nice take profit with this strategy because we’re not missing too much gain and are avoiding a massive plunge, which would’ve hit break even in many cases because many traders use them.
NB: For this strategy, I’m also trying to follow the trend.
I will go up to the 30-minute and one-hour timeframes, and if it is in an uptrend, I will be looking more for buy trades. I do that naturally with every strategy that I use.
Before I forget, I smashed the take profit here for $2,532 (381 Pips). A fantastic trade as we go into my third one to see if I can pay for my vacation.
Third Trade (Sell)
In our third trade, we have our sell indicator, as shown below.
As we’ve discussed, it is valid because it’s below the 50-period moving average.
Hence, I set my sell trade at the candle’s closing level. I placed my stop loss above the recent swing low, and you can see below that this trade goes against me a little bit.
However, it eventually went in my direction, and I closed this trade early because the candles closed on the other side of the moving average. That’s what the strategy wants us to do.
In this case, the strategy saved us because the price swung up and would have smashed the stop loss.
I would’ve lost this trade. Instead, I ended up winning this trade, banking around $800.
Before I jump into the following trade: If you are looking for an excellent broker, sign up with Hankotrade. It is my favorite broker right now.
The leverage and spread here are incredible, and I’ve never won more trades in my life than using this platform. Thus, check it out here and sign up.
Fourth Trade (Buy)
After three trades, I’m at close to $6,000 and am already close to funding that month-long vacation.
This fourth trade didn’t go quite as well as others.
I had my buy indicator, which was valid because the 50-period moving average was below, but the trade went in my direction a little bit and then closed across the moving average.
Hence, I ended up closing the trade.
In the last trade, this function for exiting saved me a lot of money and made me win it. Conversely, in this case, it made me lose it because if I still held on, I would’ve easily closed my take profit at a much higher level, banking a few thousand dollars, but that’s trading. You will not win every trade.
Even with the weird Heikin Ashi candles, I like this strategy, but you will lose trades because that’s just the nature of trading.
Final Result of The Gold Scalping Strategy
In my verified FX book trading account, as you can see below, I banked $5,000, which was solid.
I was happy with the strategy.
Below, you can see I placed four trades and won three out of those four trades, making it a respectable 75 percent win rate. The average win was 284 pips, and the average loss was -193 pips, which is an excellent risk-reward ratio.
My average trade length was 1 hour and 18 minutes.
In trade history, you can see there were four trades placed. I had $2,630, $630, $2,532 wins, and then the $785 loss.
At the end of the week, it had me up $5,000 net profit.
Admittedly, that’s not enough to pay for my month-long vacation, but do you really want me to go?
I can tell you want me to be on a vacation, trading on the beach, so I guess I will go ahead right now and reserve the place because I deserve one and know you think so too.
I’ll have a bunch of videos from my vacation home. Hence, ensure you subscribe to my Youtube channel to catch those clips.
Don’t hesitate to comment if you need any help. Much love.