Simple Gold Trading Strategy — Full Breakdown & Transcript

[00:00] Is this the best gold trading strategy on YouTube? Do these analytics make you curious of the trading strategy that gave us these results? Are you ready to learn about one of the simplest and most mechanical trading strategies to follow?

[00:18] Let's dive in. I'll leave a link in the description for several videos worth checking out. The link to the original video where RantanFX explains his strategy. the link to the video where I backtested it to see if it could stand up to proper rules,

[00:32] and the video where I backtested it 100 times. But today, I'm giving a breakdown of the strategy, how to set up the Fibonacci, and we're going to go over a few trades from our 100 trade backtest

[00:45] to give you an idea of how the trading strategy actually works. First, let's head over to Apex Replay and pull up the gold chart, and we're going to head over to the daily timeframe. So what we're waiting for on the daily time frame is until the new daily candle opens at 6 p.m. on

[01:02] gold. So we're going to go ahead and we're going to forward over to the next daily candle and here it is. Once the new daily candle opens we are going to grab our Fibonacci tool and we are going to measure out the previous day. Now it is important that you do it from the top to the bottom. Now

[01:19] don't worry about how this Fibonacci tool looks now because we're going to double click on it and we're going to set it up so that it looks a lot better. First things first, starting from the top, we're going to uncheck this trendline box. We're going to come down here and click on the extend

[01:34] lines right box. And we only need six fib levels. So we are going to uncheck the rest of them. So we need the zero and the one. And we're just going to keep these six levels here. And we're going to

[01:46] uncheck the rest of the boxes. It doesn't matter exactly which six levels that you have right now until we put the values of those levels in. So then what we're going to do is we're going to put our value for the Fib settings. We have our zero. We need a 0.1. We need a minus 0.25.

[02:09] We need a 0.9 and we need a 1.25. Now the Fib should already look a lot better, but we're going to make a couple other changes. Right here we're going to go to the bottom and we are

[02:24] going to uncheck backgrounds where it says prices and levels where it has the labels we're going to select right so that it moves over here on the right side so it's not in the way of the candles.

[02:37] The font size that is completely up to you I like the smallest so I going to do 10 and what we going to do is we going to adjust these colors here So the 0 is the stop level The 1 is going to be the take profit

[02:53] So it is going to be green. And you can see that our 0.9 level is red right here, red and green. So this is our stop loss. The gray is our entry. Now down here for the bottom, we are going to do the same thing.

[03:08] So the 0.1 is a stop loss. So I make that red. The minus 0.25 is the take profit, so I make that green. And 0 is the entry, so we can leave that gray. So now, after everything, this is how your Fibonacci should look.

[03:24] You have your levels on the right side. You have our stop level being red. We have our entry level being gray. And we have our take profit being green, and that is for buys. And for the sells, you can see our 0.1 stop loss is red.

[03:39] our entry is gray and our take profit is green. Alright, so now that we're on gold, on the daily time frame, have our Fibonacci tool set up, drew

[03:51] the Fibonacci from top to bottom, so from high to low. Let's take a look at how we would actually execute a trade. And guys,

[04:03] this is how simple it is. We're going to drop down onto a lower time frame, let's say the 15 minute and we're going to place two stop limit orders a buy and a sell. We're essentially buying if price breaks above the previous day's high and selling if price

[04:20] breaks below the previous day's low and taking advantage of the volatility once one of these price levels gets hit we're going to place a buy stop at the 1, take profit at the 1.25

[04:34] stop loss at the 0.9 then we're going to place a sell stop at the 0 stop loss at the 0.1 take profit at the negative 0.25

[04:49] and that's it. How easy is that? Once one of these orders triggers we immediately cancel the other one. If neither order has been triggered, by 12pm the next day, we cancel both orders and don't place any other orders until the next day the candle is open, which on gold is 6pm.

[05:10] So let's go ahead candle by candle and see what happens. Alright, looks like we're approaching a low. and here you can see that we have been triggered for our sell limit so or our

[05:27] sell stop so the first thing that we would do is go ahead and cancel the buy stop and let see how this trade plays out and take profit has been hit and this is on June 19th All right so now we going to remove all of this we going to go back up to the daily

[05:43] time frame and we are going to wait for the next daily candle to open. All right here we are fresh new daily candle so first things first we're going to take our Fibonacci tool we're going to draw it

[05:55] from the high to the low of the previous day's candle. We're going to drop down onto the 15-minute time frame, and again, we are going to place our buy stop and sell stop orders.

[06:08] This is how easy it is, guys. Buy stop at the 1, take profit at the 1.25, stop loss at the 0.9, and our sell stop is going to be at the 0,

[06:20] stop loss at the 0.1 take profit at the minus 0.25 and we're going to hit place order and we're going to go ahead and see how this plays out and here you can see we are triggered

[06:35] so immediately after one limit is triggered we are going to immediately cancel the other one we're going to see how this plays out and you can see that this one here was a loss and that

[06:47] completely okay the strategy does have a 42% win rate so the losses are normal so we're going to delete this we're going to go back to the daily time frame and we're going to go ahead to the next day simple as that so here hit go to next

[07:02] day open all right and this is one of the questions that I actually had while backtesting this strategy so you can see here that Monday the next daily candle opens but it's already above Friday's daily candle so in this case like let's

[07:20] go down to the five-minute time frame for example and you can see there's no damn way that any of us would have been triggered in this at 6 p.m. you can see here this happened at exactly 6 p.m. we wouldn't have been able to put our buy

[07:33] stop or sell stop in in time so we're gonna go ahead we're just going to skip that day if that happens I just go ahead and skip the day so we're just going to go ahead and skip

[07:45] the day and here we are fresh daily candle again take our Fibonacci retracement tool from the high to the low of the previous day candle once the new daily candle opens dropping down onto the

[07:58] 15 minute time frame we are going to place a buy stop at the one take profit at the 1.25 stop-loss at the 0.9 and yep you guessed it sell stop at the zero stop-loss at

[08:16] the point one take profit at the minus 2 so we gonna head and go ahead and place those orders and we going to see how price plays out and you can see here that price came in

[08:30] tagged us in let's go down to the one minute time frame to see and make sure that it didn't tag us out so you can see here triggered us in almost hit stop loss went ahead and hit take profit there for 2.5 R as you can see here.

[08:47] Let's do one more example we're going to go back up to the daily time frame. I'm going to go ahead and hit next candle open boom of course remember to cancel your other order and fresh daily candle Fibonacci retracement tool from the high

[09:05] to the low of the previous day's candle dropping down to the 15 minute time frame. We're going to place a buy stop and a sell stop. We're going to see how this plays out.

[09:25] Alright and here you can see we're at noon the next day and neither order has been triggered so we are going to cancel both of them and we are going to delete this and we are going to move on to the next day because we do not let the

[09:40] orders trigger if it is after 12 p.m. the next day so we're going to go back to the daily time frame we're going to go ahead and go to the next day and here we are Sabanachi tool from the high to the low

[09:52] drop down onto the 15 minute time frame and you can see how close we are already ready to triggering so we're going to go ahead and put our buy stop and our sell

[10:04] stop probably no need to put the sell stop because this looks like it's going to trigger the hide but let's see how this plays out and here you can see that we were triggered so we're going to immediately cancel the other one on the

[10:17] other side and you can see that that was a loss and that is pretty much all there is to this trading strategy guys it's completely simple completely mechanical the results speak for themselves let's go back so I can show you the 100 tradeback test that

[10:32] I performed and here you can see the equity curve absolutely beautiful we did have a point in time in March where we went on a long losing streak but it's okay because we recovered it plus more

[10:44] you can see that the strategy had a about a 41% win rate and gave us about 22% and this is only risking a half a percent which would be 44% if we were risking the normal 1%. If you have any

[10:56] questions guys please please please do not be afraid to ask and I would also love your suggestions on how I can make these videos a lot more beneficial to you because that is obviously my goal for us to find a trading strategy that we can use in real time to pass a proper challenge

[11:09] and eventually get a payoff.