Do You Still Believe Gold Can Be Shorted Like Any Other Pair?

Alan Solarsh argues most retail forex traders lose money because they ignore COT data and institutional order blocks. He trades gold by reading weekly Commitments of Traders reports, marking supply and demand zones on charts, and using a hedging robot to manage risk.
Questions this video answers
26 August 2025.
275,667 positions.
408,439 positions.
61,456 short positions, stated as 15% of the holding.
273,347 positions.
Chapters
Most traders lose money in Forex because of a couple of reasons. The first reason is they don't know how to read a Forex chart. They're learning on YouTube and they're learning from people that really don't know what they're talking about. I'm a contrarian trader. I don't trade according to other people's rules and use stop losses and take profits. I use what is called a hedge functionality. The other reason why people lose money in Forex is because they don't understand cotton data. COT data stands for the commitment of traders. And you can get their information off the Commodity Futures and Trading Commission. It is a ledger of what the institutions in America are doing, how many positions they have open, how many positions they closed, and what they're doing with every single instrument that they're trading. Now this data gets compiled from a Tuesday to a Saturday. So COT starts on a Tuesday, ends on a Tuesday, and then from Tuesday to Saturday they have to submit the data to the Commodities and Futures Trading Commission. And then the Com. Commodities and Futures Trading Commission compiles that data for you and then gives you the raw data. All this information is on the website over here. You can just go through this website and go and find it yourself and then you can extract the data. This is the data that you get from the CFTC and you can see that, that the institutions are holding 275,667 positions as of 26 August 2025. So I've entered the data into my spreadsheet. So this data really does mean nothing. You need somebody to compile it for you and that's what I do for you on a Friday or a Saturday. And I post this information on my Discord community, which you're free to join and free to go through this information. So you can see here that the, the positions that they hold is 275,767 positions, which is 67.52% of their all time high holdings of gold. So the most amount of gold that the institutions have ever held at one time is 408,439. Now the short positions are 61,456, which is only 15% of the holding. Now most retail traders will say, wow, that's a lot. And that is a very high percentage. The institutions are probably going to start shorting gold and we need to be placing short trades. Now that is a retail mentality and that is what we call dumb money. You need to follow what the institutions are doing. And as you can see from the last few weeks, the institutions have been loading up on gold. There's an average here of their holdings. I call it the 13 week average. So what is a 13 week average? A 13 week average is basically a quantity quarter. It's a financial quarter the last four months. And for the last four months you can see here that the institutions have basically been averaging a certain amount of gold, which is 273,347positions. Now what I like to see is, I like to see that the week, the current week is less than the 13 week average. If the current week is more than the 13 week average, generally speaking, we start getting a retrace. So that's COT data and that is the XAU USD, that's gold. I also like to look at the Dixie, which is the dollar, what the dollar is doing and I like to look at the euro, US dollar. So those are the four instruments I like to track because the order blocks may be placed differently on the different charts. And that's another reason why people lose money. They don't understand why the price is pausing and in certain places on the chart. So I actually do have a little indicator that I've built that tracks the order blocks for you. So it's basically where the institutions have bought, we call that a demand zone. And where the, the institutions are selling, I call that a supply zone. So you can see here at the top here, a new supply zone has formed. And where you see green, those are the order blocks. That's where the institutions have placed trades. The size of the trades that they placed has caused the price of gold to spike, causing a fair value gap. And then we understand that there are orders there and that is a point of interest. I also draw these out manually on my charts for my clients to see so that they can start tracking and seeing exactly what's going on. So I haven't drawn the one for today, which is this one over here and we'll just change it so that everybody can see there's the new supply zone that was created this morning. We think that jobless claims are going to be a lower number, which means that people are being employed, which is an inflationary marker, which is bad for gold and good for the dollar. So what that means is, is that the Fed may increase interest rates and then the institutions decide to move their money from a risk off asset into a risk on asset, which is the US dollar, so that they can earn money from interest rates when they put the money in the bank. So I don't believe that the market is moved because of news. I think that the institutions move the market and use the news as an excuse to move the market. So the institutions will just move the price up and down from supply zone to demand zone and it'll just ping pong back and forth based on wherever the institutions have put their orders. So it's very interesting to note where the orders are and why the price moves into these areas. So you can see here, I'll just, I'll take a little screenshot and enlarge it for you. And we can see exactly what I'm talking about. So here is a demand zone. So you can see other institutions over here, they've got orders here. What's happening exactly is when the institutions place their orders, it's like a billion dollar investment or $2 billion investment. There aren't sellers on the other side to buy that entire order. So it gets bought up in tranches of when there are sellers, then the institutions will buy. If there no sellers, then the institutions can't buy. So what the institutions will do is they'll buy, the price will spark, they'll take a bit of profit, the price will come down. When the price starts to come down, other institutions will start selling their gold and they'll lower the price. I'm not talking about the institutions that move the market. I'm talking about smaller hedge funds, smaller banks, smaller institutions. They'll see that the price is coming down maybe on a lower time frame, like a one minute chart or a 15 minute chart. By the way, you're looking at a four hour chart currently. And the price comes down to the demand zone. And then you can see here that the price has stopped in the demand zone. So new orders pending orders are being executed, buy orders are being executed, and then the price spikes up in the next candle. And then it shot up. So the orders got fulfilled here. We'll only know if there are no orders here. If the price comes down, let me draw it for you. And then a new candle opens there. And then when a new candle opens below the order block, then this order block is mitigated and then there are no more orders there. How do we know that? We know that because the price has gone through this order block. So then it means that there are no orders there. That or there's not enough orders there to warrant the price to go north. So most of the orders have been tapped out. And then we need to wait for the next demand zone to be hit, which will be the next Demand zone, which is the one underneath that current demand zone. So you can see this was a supply zone. I'll take a picture so that you can see. So this was a supply zone. The price came up, went through the supply zone. So the supply zone is now mitigated. There no sell orders there anymore. The there may still be sell orders, but there are more buying orders than selling orders. So it outweighs it. And then the price shot through in a new demand zone formed over here. It's very simple to understand, very easy to understand, of which I explain this on my groups, on my Discord community for you to understand. If you're seeing that the price is going sideways, usually what the institutions are doing is they're either accumulating positions or they're selling off. They distributing whatever they're holding. So in this case would be gold. So they're distributing gold, they're selling gold to other institutions. Very simple and easy to understand. Once you start understanding cot data together with the order blocks, you can start then using my software properly, you can start manipulating the software to your advantage. It's all very well to set up the robot, set it up with low risk settings. But if you really want to harness my robot, let me show you what harnessing my robot looks like. Let me open one of my clients FX Blue results. Right, so this is a client of mine, his name is Bruce. We'll go over to the testimonials group so that you can see exactly what I'm talking about. This client of mine started, took him a little bit of time. He was a bit gung ho on what he was doing, but there is the link and he's making a huge amount of money with me. So initially he said there to us. It took him a while. He said, well it has been over a year, a couple of snafus in the early days, margin calls and all. But now 12 months later I have reverse drawdown which means that draw up similar to what I've got. So if we look at my account, we're talking about a positive bank balance, not a negative balance where it's red. We want to be in blue. That's what we want to be. So he's saying he's got a positive draw up. Most trades in plus stop losses set in profit. Ellen, I don't know how you arrange no swap fees etc and fantastic hedge protection. And thanks Andre. Andre's my administrator that we pay to assist my clients for showing me how limiting trades per chart makes it so much safer. Only problem now is our friends sars, the tax man. And yes, unfortunately we have to pay tax on our trades. But the point is, is that you can see his results. Let's go to his results over here. And you can see now it took him a bit of time. I think most traders, it takes a bit of time to get this under control because you're coming to me with bad habits. You're coming to me with your old teachings that you've learned on stop losses and taking profits. And I don't trade that way. I don't use stop losses and I don't use take profits. I'm a hedge trader. I was taught by an institutional trader and he taught me what is called hedge trading. The institutions don't put stop losses and take profits. They put hedges in place to mitigate risk. And that's how you trade. That is how you're supposed to trade, which is what I share with you and what I teach you and how help you to make proper money. So you can see he's on about a 650% profit so far. This is a cent account. He doesn't have $1,133,620 in his account. This is a cent account where you move the decimal place two places from right to left to get to a dollar value. So he's got $11,336 in his account and his equity, he's got $2,885 floating positive. My mine is slightly different. I've got $19,460 floating positive trades. A little bit of a different position to him, but I mean, he's made 652% profit and he makes 12% profit per month every month. And we can see that from his. It's actually more. Okay, his, this is not correct. This is taking into consideration that he had a margin call. So somewhere over here he almost blew his account or he did blow his account and he ran into a problem. What we need to look at is we need to look at his real average. So if we take, let me take another screenshot so you can see that we're actually looking at the exact same account. I like to show you guys facts so that you can make up your own mind and see that we are transparent. His first month he made, he's actually making 37.3% on average only because he understands now how to read a forex chart properly. He understands how to understand the, the order blocks, the supply and demand zones. And also he understands how to read that data so he can make educated decisions, so he understands what the institutions are doing. Knowing that, it's like. Let me put it to you differently. If you knew that the institutions were long, would you place a buy trade? The obvious answer is no. You need to sell at the top, buy at the bottom, generally with all other instruments except gold. Why? Because gold is a storage of value. For the last 6,000 years that we know of, gold has just increased in price. Now with America, they are debasing their currency. They they printing dollars. It's another conversation altogether. Not going to get into it, but understanding of the public is that they're printing money which basically creates inflation and it devalues the dollar, which makes gold more valuable. So gold is always going to be increasing in value. Some people are saying that gold is going to get to $5,000, $8,000, $10,000, some are even saying $20,000. And that could happen soon because America is starting to probably going to go back onto either the gold standard or the bitcoin standard. So they're going to bring back the gold standard, which means that for every dollar that they have, you could exchange it to the equivalent of gold at the bank. So the gold at Fort Knox is undervalued. It's valued at, I think $42 an ounce. And an ounce of gold currently is trading at 3542. When they really revalue the gold, they reckon that gold could go to 10,000 or $20,000 and an ounce, which is absolutely astounding. So generally we don't sell gold. It's like bitcoin. We hold it, it's a storage of value and there's no reason to be selling your gold. So I hope that this makes sense to you and I hope that now you can see that we know what we're talking about and this is why you should be using us as a preferred supplier over everybody else, because we're transparent. Number one, we've got discord community. So you've got a community with paid administrators where we educate you. We don't spoon feed you. We educate you on how you can make your own decision so that you can become independent. There's nothing worse than being dependent on another person. I mean, that's not what this is about. This is about me and my team, your mentors that are going to be educating you on how to become independent so that you can make decisions of what you want to do, so that you can start collapsing timeframes to your retirement, collapsing time frames from 30 years to 20 years to 10 years to even 3 to 5 years retirement. Wouldn't that be exciting? What would you be doing? Where would you be going? Taking your family overseas, trips, holidays. Amazing. So, I mean, we've got lots of clients that are making lots and lots of money now. And there's no negativity on my groups. Everybody's making money. I even ask my clients, I want to hear the good, the bad and especially the ugly. If you're losing money, I want to know why. So I'm very open, I'm very transparent. Nobody's losing money. If they're losing money here, it's because of their own fault, because they're not following the rules. They're coming into my group with their old thinking of using a stop loss. I mean, the standard thinking out there is to when you place a trade, to place a stop loss at 30 pips and then take profit at 15 pips. Why would you do that? The only reason you would do that is because you don't understand how to read a chart. If you knew how to read a chart and you knew that the chart had reversed and is going north, why would you close your trade in profit? This is exactly why my trades are blue, because I understand how to read a chart. Would you not want your equity and your profit and loss screen to look like this? It's. It's amazing. Even though the second candle is open below the atma, I know that we're still north. There's a pennant there and the price is probably going to go north. I even drew it for my clients on the groups this morning. There it is, there's the pennant. And I said, yeah, this is price. Probably what's going to happen in the next couple of days and weeks. We're just waiting for nfp. We'll see if it goes south. Not a problem. We'll just buy at lower levels, which is great. So I hope that you found this video interesting. If you want to know more about it, just check in the description of the video or contact me. My numbers in the description of the video or I'll leave my number on the video itself so you can call us, get a hold of us, WhatsApp us. We can help you get started, show you exactly what to do and how to automate this so that you don't have to be be hostage to the chart. I don't want to trade all day and I don't trade all day. I'm not in front of my charts all day. Very seldom place trades. I'm very selective of when I place trades. I place trades at the right time. I don't have to make money every day. I make money when the. When it's right to make money. I'm not rushing into the chart and quickly placing trades and then looking at other instruments and quickly placing trades there. I'm an expert in gold. So if you're looking for an expert and you're looking for a group, community, tools, mentors, strategy that understand what's going on. I think you found them. Don't go any further. Just go to the description. Give us a call. WhatsApp me. We'll get you started. We'll help you to start making money. I hope that you found this interesting. I'll see you on my next video. Cheers.
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