You can learn how to trade gold on MT4 even if you are a beginner. At EA Trading Academy, we’ve shared many trading strategies in our videos and on our blog.
However, we know that many people are still frustrated. They don’t know where to start. They don’t know which broker or platform to choose from all of the options that they have.
With a Gold trading strategy, you’ll know when you should buy or sell. In this post, you’ll learn how to select a regulated and trustworthy broker and place a trading robot on MetaTrader 4.
Some traders like to trade manually at times. You’ll learn how to trade gold on MT4 manually and automatically.
Use This Strategy on the M1 Time Frame
This Gold strategy works on the M1 time frame. So, you’ll enter and exit trades in minutes. You can sit at your computer and trade with it. We also offer a free robot for this strategy, but make sure you read it all thought the end of the post.
Carefully Select Your Broker Before You Trade GOLD on MT4
You’ll need an account with a broker if you want to trade gold on MT4. So, you can check out the Brokers’ page at EAtradingacademy.com.
We use the brokers on this page. However, you should do your due diligence before opening an account with any of them.
These are regulated brokers that offer Forex, commodities, stocks, and crypto trading. Traders should always choose regulated brokers. Nowadays, as you trade gold on MT4, you have to be very careful so that you don’t lose your money to a scam.
You should be very careful about the broker that you choose. We’ve met many people who were scammed.
People write to the Academy daily to tell us about their experiences with scammers. However, we can’t do anything to help them recover their money.
We can only show you a few regulated brokers and remind you to do your own checks before you sign up with them or any other broker.
If you open a Demo account, you can trade without the risk of losing money. You should also test their withdrawal process by making a small initial deposit. Always check to make sure you can withdraw your money at any given moment.
Install MetaTrader
After you select your broker, you can install MetaTrader to trade gold on MT4. Some brokers have MT4. Others have MT5.
Here at EA Trading Academy, we have two versions of our robot. So, you can test it on either MT4 or MT5. When you have the robot, you’ll need to go to File and click Open Data Folder.
Open the Terminal Folder and click MQL4. Click on Experts and paste the Expert Advisor. After you compile that you’ll get the EX-5 file. That’s the ready-to-use version.
You can Compile the robot in two ways. You can click on Refresh, and it will compile automatically. If you’re using MetaTrader 5, you can’t Refresh and Compile the robot. You’ll need to Compile it from the MetaEditor.
You can also double-click on the robot and the MetaEditor will open or you can click on Compile, and it will be ready to use. Some people prefer the second method since they don’t want to take a risk with the code.
Use the Right Settings to Trade GOLD on MT4
This robot was designed to work with specific settings. So, you can always make sure you select the following settings:
- The M1 time frame
- Fixed Stop Loss and Take Profit
- The amount of cash you’re willing to risk (the Lot you Trade)
After you’ve selected your Settings, click on Okay. You’ll see the Smiley face. That means the robot was attached to the chart successfully. After that, it will start trading.
Manage Your Money Carefully
Always manage your money carefully. You could use 20% of your account on just one trade but make a profit of 80%. However, you would risk much of your capital when trading gold on MT4.
You make your own choices about managing your money, but you should always decide how much you’re willing to risk from your account.
Manual Trading
You can trade manually with the gold trading strategy. You can right-click and go to one-click trading.
When you decide it’s a good time to buy, you can buy from right there. When you decide to sell you can do it there.
Always look for brokers that have low spreads. For example, a spread of 35 pips is relatively tiny. That makes it suitable for algorithmic trading.
When the Stochastic crosses the 50-level line in the middle it’s time to buy. So, you would buy at the next bar.
And here are the parameters for the Stochastic Indicator:
Stop Loss for the Gold Strategy
It would be best if you also used a Stop Loss with this strategy. We use a Stop Loss of 1,200 pips or $12 from the value of Gold.
We hardly ever reach the Stop Loss. However, a Stop Loss helps to protect our capital.
Trade GOLD on MT4 With This Exit Condition
Our exit condition uses the ADX. This gives us an indication of trend strength.
So, we look for the ADX to cross the level line upward. With this strategy, we use a K period of 5 and a period of 10.
Final Thoughts
We backtested this strategy for six months. We did nearly 27,000 trades in that time.
That’s a lot of trades, but we could do them with the robot. So this strategy isn’t difficult to use. However, you’ll need to have a trading broker with MetaTrader installed to trade gold on MT4.
You can get the robot free by clicking the link below:
Thanks for reading today’s post!