The BEST Forex Trading Strategy for Gold *LIVE TRADING XAU/USD*

What is goodie, my people? We're back again with another gem, and this video right here has been one of the most requested videos of probably my whole entire channel. Um, so you guys know I do do binary options trading, I do crypto trading, I do stock trading, I also do forex trading. Now there's a whole misconception about forex because they think forex is when people's trying to like get you to join their group and all this blah blah blah, whatever it is. But forex is actually a very lucrative, um, form of trading if you're good at it. You can control your psychology as well as control your fingers and not just enter into trades for no reason. But I've been doing it for a little while now. I used to do it a lot. Well, I started doing it a long, long time ago, but then I stopped and I recently started doing it again probably a year ago, something like that. And I just want to show you guys what I think is the most profitable strategy on gold. I trade XAU/USD, which is basically gold versus the US dollar. Um, this strategy can work for crypto. I've used it for trading crypto, I've used it for trading other things, but I've found I just like trading gold the most. I know gold, um, the best as of right now. So I'm going to take you guys through my strategy. We're going to backtest, do a bunch of different trades, show you guys it works. We're going to count up our pips that we do because this is how I backtest. I'll take 10 trades, I'll count up how many pips I won. If I lose a trade, I'll count how many pips I lost. And I just do 10 trades, and after those 10 trades, I'll add up all the pips together. If I'm profitable, um, amount of pips, I usually just go be like, okay, this trading strategy is profitable profitable, or was profitable this time. And then I'll go back, try and critique it, then go back and, um, run through it again and see how many pips I got at the end of the 10 trades, if that makes sense. You guys are gonna see, we're gonna go back, I'm gonna show you guys how I do the strategy. Um, like I said, the strategy can be used on other currency pairs. I just use it on gold. Y'all let me know in the comments down below what other Forex videos you guys want, because I personally like Forex over binary options trading, or HFX trading, whatever you want to call it. So I'm really excited to do some more forex videos. If you guys want more strategies, you guys want to try, want me to try different challenges like trying to grow a $100 account or trying to flip $10 to whatever, y'all let me know in the comments down below. And if you're interested in live trading as well, you guys expressed that you guys wanted me to do some live trading videos when I made up the binary options trading strategy video a couple days ago, which has been doing pretty good. So if you're excited for forex content, make sure you hit that like button. If you're new here, subscribe, 'cause I'm always dropping gems, man. I'm always dropping gems. Everybody gotta eat, man. I'm just trying to help everybody eat. Um, so yeah, let's just get right into this video. All right, boom. So here we are on the chart. This is actually just my regular chart mock-up. I'm gonna explain all this, of course. This is the trade I took this morning. Um, I caught a cool, uh, 72 pips on gold this morning, um, around 8 o'clock, whatever, at that. I'm gonna get into that a little bit later, but we're just gonna open up a regular, um, XAU/USD chart and we're gonna go through a bunch of trades. I'm gonna show you guys how to do my strategy. And, um, yeah, so boom. All right, I'm gonna try and make this very simple. I'm not gonna try and make this video long at all. Hopefully it's not long because you're probably looking at it like, this man say he's not gonna make the video long, but it's 45 minutes. It's, it's definitely not gonna be 45 minutes. But one thing for gold that you have to keep in mind is at between 7 o'clock and 9 o'clock every morning, uh, Eastern Standard Time, gold makes huge moves. Either, it either reverses— most of the time reverses around that time— it makes huge moves to the upside or downside depending on, um, just whichever the direction is going. But it always makes huge moves around the 7 o'clock to 9 o'clock time. Most of the time it's really at literally 8 o'clock. Um, so let's say right here, this is at 7:45, then you see once 8 o'clock hits, which is right here, it drops all the way down here. That's actually a trade I caught for 72 pips, and it just keeps changing the whole direction. Over here was consolidating for the entire time. Just in like this type of channel, and at 8 o'clock it broke all the way through. Um, so that's just one thing to keep in mind. I'll give you guys another example at 8 o'clock again. So this is 8 o'clock right here on this green candlestick, and you see at 8:20 it shot all the way up here. Complete change of, um, direction because as we see here we have a nice downtrend going on. We have higher— lower highs and lower lows going the whole time. It goes all the way down there, then it comes up here, 8 o'clock hits, break of structure right there completely, and then it just goes from there. So always at 8 o'clock— I don't want to say always, but 95% of the time around 8 o'clock, um, give or take a couple minutes, gold always makes huge movements. Um, most of the time it's reversal. All these that we've seen have been reversals because this one started up here, then 8 o'clock reversed and started going in the other direction. Same thing happened over here, it was consolidating over here and it just shot all the way down. It's still continuing to go down. If you got in this trade, you could have made 134 pips just off of gold really quickly. Now, as you see, this is a 5-minute chart. Um, I do use 5-minute charts for entries and kind of marking up my chart for the most part, but, um, for my support and resistance, I do use an hourly chart. So what we're going to do, I'm going to do exactly what I do on when I'm back testing. You guys are just going to kind of be here while I'm back testing. Um, on TradingView, there is the option where you can replay, which is like you go back in time and pretend like you're trading that way. So that's what I'll do all the time. I'll close my eyes, scroll back a whole bunch, and just press the replay button, just go from there. Um, so that's what I'm gonna do really quickly. So we're gonna stop this. This is what, um, gold price is at right now. I'm gonna press the replay chart, close my eyes. You see my eyes closed, I'm covering my eyes. I'm gonna scroll back a whole bunch and just click. And now we're at a random spot in, uh, gold right now. This was June 21st. Um, and basically what I do on the hourly chart— the only time I use the hourly chart is to draw my support and resistance. So I'll draw support and resistance at just a bunch of places where price like has went a lot. Um, so around this area right here, I don't really use these support or resistance spots to trade off of. It's kind of just more so when I'm on the 5-minute chart and I see one of these lines, it's just like, okay, be cautious around this area because this is a support and resistance on a higher, um, time frame. My technique is more so of like a scalping kind of technique, um, but not— it's not really fully scalping. It's more so just, um, I always— I do it on 5-minute time frame just because it tells the story a little quicker so I can get in my trades quicker. Um, these are not the most clean support and resistance I'm drawing right now, but I'm just hitting a couple points that just like stand out to me off rip. Um, but like I said, I don't really use these support and resistance very often. They're kind of just like a beware of this zone type of thing. Okay, so we have this. Um, so my trading style is all based off of trends. It's always based off of, um, it has to be a strong trend either up or down. If it's consolidating, I do not trade it. If it's um, I'm trying to find an example of something I wouldn't trade. Like this, I would not trade this area right here. It's just too messy for me. I'm not really seeing anything. I look for higher lows and higher highs, lower lows and lower highs. And if you're new to trading and you don't really know how to like kind of look at a chart and just see trading, I still do this to this day. Um, it just makes everything clear for me. I use this little tool right here and I'll go from the top to the bottom to the top, to the bottom, to the top, to the bottom. And that kind of just makes it plain for me. I didn't mean to press that, sorry. That just makes it plain for me that it's making lower highs, lower highs right here, lower lows, lower highs right here. This is a higher low, but we're still on the downtrend because we're still, it's a lower high. And then we made another lower low and it looks like it's making a lower high here. So onto the strategy, right? So I really wanna make this very simple and plain 'cause I can say it in my head, and they'll be like, yeah, this, this completely makes sense. But I just want to be able to say it so you guys understand it as well. I'm trying to make it as simple as possible. Now I'm going to try to take some blind trades as well. Well, these aren't— I'm obviously not putting money on it, but I'll put my whole, um, short position and everything like that in the trades. We'll see if I would have won the trade at all. I do 10 trades, count the pip lossage as well as the pip gain. My cat is about to get rained on because he wants to stay on the balcony and it's about to rain. Um, I don't know why you don't want to come inside, but anyways, um, I'm gonna show you guys now. So, um, this is a nice little downtrend we got going on right here. Um, I kind of would have missed my entry point, and basically what I do on a downtrend, I'm always going to take the last— the lowest of the, um, candlestick wick, or the lowest of the wick before it make a little retracement up. So if we see here, this is a retracement up. It came down here and then it retraced up to here. That's a retracement. So I'll take the lowest candlestick, which would be this green candlestick right here. I would cover— I'll put a little box around it from the wick to the top point of it, and I would literally just wait for it to come up and retest that area. Always comes up and retest it. I'm still on the hour chart right now. It works on all the time frames, but I just personally like the, the 5-minute. Um, but I'll go to the 5-minute in a second now that I actually realize I'm still on the hourly chart. Um, but what's it called. So I wait, I make the box around the lowest part of the, um, candlestick, or lowest part of the downtrend before it made the retracement up. And once it comes all the way down through and passes that last low, which is this green candlestick right here, and my box, I'll wait for it to go down and then come back up and retest this area. I would go in for a sell in this position. As soon as it touches it, I'll go in for a sell. I put my stop loss right above the box. I'll give it a little bit of space, and I'll put my, um, take profit either to the, um, the next support zone I see or, um, something else. Usually time I'll find it, I'll put it to where I saw candlesticks go previously, but right now I don't really see any in this area. And there's a support zone right here. I don't know, this isn't really a support zone I would take, um, but we can see if this will play out. I kind of cheated and went into it. I already saw it was a red candle coming down. And that would have won the trade right there. That would have won, um, 54 pips right there. It says 543, but I count as 54 pips because it just makes it very simple for me. This is 54 pips right here that would have won, um, just off of that with a 23 pip I could have lost. So my risk to reward ratio is 2.35, which is great. I always like having high, um, risk to reward ratios. If y'all watch my last video, you know it's very hard for me to say risk to reward. I don't know why. My food just turned off. I should probably go turn it back on, huh? I'll do it in a little bit. But yeah, you have to realize, even with this strategy, you're not gonna win all the time. I was backtesting one time, I only won 4 out of 10 trades backtesting, and I still came out profitable just because with this strategy, you have such small, such tight stop losses that you can lose 3 trades in a row, and if you win 1 trade, you'll still be profitable. So it's not always about winning every single trade. You guys have to understand that. It took me a long time to understand that,. It sucks to lose trades. It sucks when it says -200, -1,000, -5, whatever it is. But overall, at the end of the week, if you're good with your risk to reward ratios, you're good with your risk management, you're still supposed to be profitable. So I'm not gonna count that when we count up our pips, but that was just an example showing you guys kind of the strategy. I'll show it to you guys again. So right here, we have the lowest point right here. We'll put the box around here. It came up and touched it. I would've waited for a little bit more of a touch, I'll see if it does it. It obviously doesn't. Oh, it does right here. Um, and it kind of rejects it on the lower point. So I personally probably would not have taken this trade just because of this candlestick right here. We have a shooting star, a green shooting star, so it's like as if it does not like going down anymore. So I personally probably wouldn't have taken this trade, but we can see how this plays out. Yeah, it would have taken out the trade right there. But let me go put my food back on, then we'll get into back testing for real and count the pips and everything like that. All right, I am back. And if you guys ever have any questions with the strategy or anything like that, let me know in the comments down below. I'll read through all the comments and I'll be responding to them as well if you guys have questions. So what I'll do is I'll get my, um, when I'm backtesting— excuse me, sorry, I'm about to burp, it's not coming out now— um, I'll go on my Notes app and I'll just put in trading on whatever the day and time it is. And then I'll just put in every single time I do a trade. Let's say I lost 10 pips, I'll put -10. If I won 20 pips, I'll put 20 minus 10 at the end. I just add up all the numbers. So let's start real quick. I'm just gonna get a bunch of trades and go through them. Um, see right here we have a little complete change of direction. This is at— oh, this is at 8 o'clock right now. Oh, I need to go back to the 5-minute. Oh, I'm tweaking. All right, we're on the 5-minute chart now. It all works the same for every time frame. Um, for this one right here, we have a high of this one. This is the uptrend, so we have a high. Put a box above it. It came down, retested this area. I would have waited for an extra candlestick that showed me it was going up. But, um, just in case we're hopping on it straight away, I put a long position as soon as it touched the box. I would have went up to the nearest— well, the nearest one would be right here. This is the last high. So we have over here the last time it was in this area, that's the high point it went. So I'll put it a little bit below this last high right here. I put my take profit a little bit below this high right here., and my stop loss, uh, did not mean to move that. My stop loss just a little bit below this box. Um, as you can see, we have a 2:3 risk-to-reward ratio. We have a— we're probably— we might— if we lose this trade, we're gonna lose 5 pips, which is not that much at all, to make 15 pips. So we're gonna see how this plays out. And I won it! So we won 15, um, trades just like that. Um, if you guys understand, I just want you guys to to understand the box, um, where you're placing the box on each and every trade. And keep in mind, this is without me re-entering trades or doubling up on my trades or cutting my stop loss short because I see it's obviously not going my direction. This is just going to be cold, raw, doing it. Um, that sounded weird, didn't it? This is just gonna be completely cold, just straightforward, never entering more into the trade. Usually if I see a trade going in my direction, I'll double up like this area right here, when it came down again, this red candlestick, I would have doubled up on the trade. As soon as I seen this green candlestick, I would have doubled up again. It would have came down, I would have seen this green candlestick, I would have doubled up again until it hit my take profit. So I would have won actually more than 15 pips on it. But we're just gonna go for just 15. So I'm gonna go to my phone, I'm gonna put in 15 'cause we did just win 15 pips with that trade. And then we're gonna look for our next trade. So as you can see, it is making, um, it's still on an uptrend. It's very wicky in this area, so I probably would not trade this. Plus, this is at, um, 12 o'clock in the afternoon. Usually gold only moves a lot between like 6 AM and 12 PM. After that, it just tends to consolidate a lot, which I do not like trading. So when I find another trade, I'm going to get back to you guys. See, I'm over here looking for a trade. This is in the middle of the day, it's at like 4 to, um, well, this starts at— this is 2 PM and this is 6 PM, and it's just consolidating this whole entire time. Sorry, this is still 4 PM. It's just consolidating this entire time. Then I wait for big movements. I'm not trading consolidation. I told you guys We do not trade consolidation. This is just consolidating between like 18 pips in total, and to be able to catch it all the way at the bottom instead of at the top, it just— you have to be very lucky to get that. Um, so we just wait for trending, um, times just like this. I see it's going down, gonna make— wait for it to make a nice higher, um, or a little retracement, which is this area right here. Once I made the retracement, I'll draw my box around this area right here, wait for it to pass out of that box and then come up and retest it. Um, this is retesting enough, I guess. Actually, I want to wait again. Yeah, we'll say this is retesting. Um, then we'll go for a sell position right at this box, put this right above here, and my take profit— it doesn't give me a clear sign of my take profit. So yeah, honestly, I don't trade unless I have a clear sign of a take profit. But if I'm backtesting It doesn't really matter to me. I just want to make sure I, I have the trade down packed, or I— the trade would have went in my direction. So we'll see if this goes in my direction. It does, and I would have won 16 pips on that. So put 16. Like I said, this is kind of scalping, so I'm only making short amount of pips. But like I said, the same strategy can be used on higher time frames. It's just a lot of people, a lot of people are not that patient to go on the higher time frames. So now I'm just going to trade like I would. I'll play some music in the background so you guys don't have to listen to me talk the whole time, and we'll just go into another trade. I would have hit this trade right here. You can use Fibonacci's, actually. I usually do not, just sometimes if it's in the middle of nowhere, I'll use a Fibonacci. I don't even feel like drawing Fibonacci. We'll just I'll put this over here. Um, just for— I always want more than a 1:1 risk-reward ratio because if you have a 1:1 risk-reward ratio, you have to win more trades than you lose. Um, and we don't like that. We like to be able to lose a couple trades and win it all back by just, um, what's it called, by just getting one trade correctly. So I would have lost this trade, but personally it doesn't even matter. I lost this trade because I, I never had a— it went in my direction all the way up to here, which is probably where I would have put my take profit. But I really just dragged this into the middle of nowhere because I didn't see any support or resistance areas around here that I wanted to put price to, and it ended up stopping me out. But I only lost 9 pips, so we're not mad about that. Out negative 9 that one. And, um, now start trading with no music and no more talking. Y'all gotta listen to me no more. Y'all can just watch and see see how it all plays out. I did 3 trays already. I'm gonna do 7 more. As y'all can see, this one was going on for a very, very, very— this trade has gone on for a very long time. This was, if we count it up, um, 95 bars. What is 95? 5 I ain't feel like doing the math, but that's a couple hours right there. I ain't gonna hold y'all. But, um, yeah, but I end up winning this in the end with, uh, 31 pips. All right, y'all, my camera stopped recording, but y'all saw it on the screen. Um, I just finished my 10 trades, so we ended up winning 1, 2, 3, 4, 5, 6— 6 out of 10 trades. We lost 4, and all of my losses were under 10 pips, and my highest biggest gain in one trade was 31 pips. So if we add this all together, this is the pips— well, y'all can't even see it. I'll put on the screen right now. This is the, the pips I had, and you can go back in the video, slow the video down, and check all of them. Like, I, I just copied what I made and put into my notes. So, um, let me just go into the calculator right here. Um, it's not going to show up on the screen for you guys, but I'm just going to calculate this right quick. So 15 plus 16 minus 9 minus 10 plus 23 plus 13 plus 25 plus 31 minus 6 minus 6. Boom. So at the end of the day, I had a 92, um, pip profit at the end of these 10 trades. Um, just from using this strategy. If you guys don't understand the strategy, like I said, you're just using the lowest. If it's on a downtrend, you're losing— using the, the highest high of that downtrend. So for example, um, well, you guys just saw 10 examples. Let me try and find another clean example, um, that I can find for you guys. And now you can see all these big moves were made around the 8 o'clock time. This is this green candlestick right here. This one, right? I did not even do that. This one right here. This was at 8 o'clock. I'm telling you guys, at 8 o'clock, gold makes crazy movements. So if you're not an early person or a morning person, you need to become a morning person. I ain't even gonna hold y'all because 8 o'clock be moving, or gold be moving at 8 o'clock. I think I showed you guys enough examples. Symbols. If you guys need any more help with the strategy, just let me know in the comments down below. Watch this video through multiple, multiple times. Follow the trades that I'm doing on YouTube. There's a, um, there's an option that you could do is slow down the video. I just sped up the video when I was doing all the other trades just so you guys can still see all them. So just use that option on YouTube to slow it down to 0.25x speed, whatever it is, so you can watch the trades. Watch why I went into each and every trade, why I waited for some trades Um, if you guys want me to do a live trading video, I could do that where I don't speed it up, um, just so I could talk to you guys through it, through each and every trade while I'm taking the trade. But I just wanted to kind of like do this real quick, and I did not want the video to be super long. That's why I sped up the clips. But that is the end of the video. Hope you guys enjoyed. Make sure you guys like the video right now, first of all. Let me know in the comments down below if you guys have any questions. If you guys want to say, oh, thank you for the strategy, the strategy is fire, test the strategy out for yourself. Um, like I said, even if you do not win every trade— I lost 2 trades in a row and I was not even sweating because I'm like, at the end of the day, I'm gonna be profitable. And at the end of the day, I was profitable 92 pips out of those 10 trades, which if you have a regular lot size, it could have been $900. Uh, you could have made $9,000, $90, $9, $900,000, $9 million, whatever it is. It's just, um, depending on your account size. And obviously, do not trade with money that you cannot afford to lose. Guys, do not trade with your grandma's funeral money, your mom's cancer money. Don't trade with none of that. I'm saying trade with your birthday money that your grandma gave you for your 17th bar mitzvah or whatever. But isn't bar mitzvah not 17? I think it's 18 or 16. Anyways, y'all know what I'm saying. Do not blow your money. Use— trade responsibly. But, um, yeah, let me know in the comments if you guys want me to do any other type of Forex videos, any type of strategies. I have a bunch of strategies that I could show you guys. This is just the one that I use all the time on gold. Like I said, I showed you guys in the beginning, I used it in the morning and I did make profit on it. But that is the end of the video. I feel like I said that a million times, but good luck on all your trades, good luck on crypto. Crypto's up today, crypto, Bitcoin up 15%, man. We is living good right now, you know what I'm saying? But yeah, I'm gonna see y'all next video. Y'all stay safe out here.