Market Conditions
- Prefer days with directional bias (news-driven or strong session impulse).
- Avoid FOMC/NFP minutes around release; spreads can spike.
- ATR rising; structure shows HH/HL for longs or LH/LL for shorts.
XAUUSD — London Momentum
Trend-following during London session using EMA trend filter and volatility bands, focused on pullback entries with defined risk.
Timeframe & Session
- M5–M15 operational chart; H1 for bias context.
- Session window: 07:00–11:00 London time (approx.).
Indicators & Setup
- 200 EMA for trend direction (slope filter).
- Adaptive volatility bands (e.g., ATR bands or Keltner).
- Optional structure tool to mark swing highs/lows.
Entry Rules
- Identify trend direction from EMA slope.
- Wait for pullback to band in trend direction.
- Trigger on momentum candle closing back with the trend.
Stop & Target
- SL beyond the recent swing or band break.
- TP 1.5–2R at next liquidity area; consider partials and trail.
- Avoid trading if spread/volatility widens abnormally.
Risk & Management
- Risk per trade: 0.25–1% typical for XAUUSD.
- Max daily loss (e.g., 3%); stop trading if hit.
- Skip trades around red‑flag news unless strategy is adapted.
Backtesting Plan
- Pick 6–12 months covering trending and ranging regimes.
- Record entries, SL/TP, R multiples, and session time.
- Evaluate expectancy, profit factor, max drawdown, and time-in-trade.
- Test sensitivity to band length and EMA period; keep parameters simple.
Live Execution Checklist
- Spread within threshold; slippage normal.
- EMA slope consistent across M5/M15; no conflicting bias.
- Set alerts for pullback-to-band; pre‑define orders and stops.
- Journal with screenshots before/after; note session anomalies.
Common Mistakes
- Chasing entries far from band after impulse candle.
- Trading during major news spikes with wide spreads.
- Ignoring opposite higher-timeframe structure.
Disclaimer
Educational content only. Trading involves significant risk. Never trade money you cannot afford to lose. Past performance does not guarantee future results.