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Best Lot Size For Scalping, Day Trading, Swing Trading GOLD XAUUSD


best lot size for trading gold

What is the best lot size for scalping, day trading, swing trading Gold XAUUSD?


In the today's article, I will explain to you how to calculate a lot size for trading Gold for any trading strategy and trading style.


As the example, I will measure lot sizes for 500$, 1000$, 10000$ XAUUSD trading accounts.



Scalping Gold


For scalping Gold, traders commonly apply 5m/15m time frames.


5 Minutes


In order to calculate the lot size for 5 minutes time frame trading, you will need to back test your trading strategy and find at least 5 trades that meet the rules of your trading strategy.


But remember that the more trades you will back test, the better and the safer lot size you will calculate.


You will need to underline the entry point and a stop loss for each trade.


best lot size for scalping gold

Then you will need to measure stop loss value of every trade in pips.


best lot size for scalping xauusd

Then, find the trade with the biggest stop loss in pips.


In our example, the biggest stop loss is 353 pips.


best lot size for scalping gold on 5 minutes time frame

After that, open a position size calculator for Gold.


As an example, we will apply myfxbook position size calculator.

best lot size for scalping xauusd on 5m

Fill all the inputs.

As a risk ratio, input 2%.


lot size gold scalping

Our best lot size for scalping Gold on 5 minutes time frame will be:


0.03 lot with 500$ trading account.

0.06 lot with 1000$ trading account.

0.57 lot with 10000$ trading account.


With such a lot size, your potential risk will not exceed 2% of your trading account balance and the average risk will be close to 1%.


15 Minutes


For scalping Gold on 15 minutes time frame, find at least 5 trades based on your trading strategy rules.


best lot size for scalping gold on 15 minutes

The biggest stop loss in 600 pips.


Please, note that the higher is the time frame, the bigger are the stop losses in pips. It means that higher time frame trading requires bigger account balance than lower time frame trading.

Apply XAUUSD position size calculator to measure a lot size for 15m trading.


best lot size for scalping xauusd on 15 minutes

Our best lot size for scalping Gold on 15 minutes time frame will be:


0.02 lot with 500$ trading account.

0.03 lot with 1000$ trading account.

0.33 lot with 10000$ trading account.


Day Trading Gold


Common time frame for day trading Gold are 30M and 1H.

30 Minutes


Find at least 5 trading setups on 30 minutes time frame and measure stop loss in pips.


best lot size for day trading gold

The biggest stop loss in our example is 997 pips.


best lot size for day trading gold on 30 minutes

According to XAUUSD position size calculator,

best lot size for day trading Gold on 30 minutes time frame will be:


0.01 lot with 500$ trading account.

0.02 lot with 1000$ trading account.

0.2 lot with 10000$ trading account.


1 Hour


The same logic will be applied on an hourly time frame.


best lot size for day trading gold on 1 hour

Among 5 trading setups in the example above, the biggest stop loss is 1500 pips.


500$ trading account will be not enough to control risks below 2%.

You will need at least 1000$ for day trading Gold on an hourly time frame with such stop losses.



best lot size for day trading xauusd 1H

Using Gold position size calculator,

here are the best lot sizes for trading on 1H:


0.01 lot with 1000$ trading account.

0.13 lot with 10000$ trading account.


Swing Trading Gold


The main time frames for swing trading Gold are 4H and Daily.

4 Hours


best lot size for swing trading gold

In our example, the biggest stop loss is 2800 pips.


1000$ account will be not enough for taking such a trade with 2% risk.

Taking the trade with minimal 0.01 lot, the risk will be 28$ or 2.8% of 1000.


xauusd best lot size for swing trading

Using XAUUSD lot size calculator, the best lot size for swing trading on a 4H will be:


0.07 lot with 10000$ trading account.


Daily


For swing trading Gold on a daily time frame, traders usually have big stop losses.


xauusd best lot size for daily time frame

Among 5 trading setups above, the biggest stop loss is 6300 pips.


best lot size gold daily

According to XAUUSD position size calculator, the best lot size for swing trading Gold on a daily time frame will be:

0.03 lot with 10000$ trading account.



Before you start trading on a real account, you should know exactly your risks in pips. Knowing the biggest stop loss will help you to carefully measure the safest lot size for your trading style.


Make sure that you have sufficient balance to not exceed 2% risk per trade and analyze as many past trading setups as possible.

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