Today, something live from the practice: The strategy I am currently trading in gold is unbeaten in backtesting in 2023! There were a total of 12 instances of this pattern and each time the trade ended in profit.

If it ends in loss this time, I will not immediately question the system. It could just be a lost trade and the record of 12 wins to 1 loss is still fantastic. By the way, I also moved the stop loss in the backtest. I will do the same in practice. However, the majority of trades actually reached the maximum profit. Only a few were ended with a small profit.

Gold trading in the 30-minute chart. The first candle on the left gave me a long signal with the 3plus1 indicator. Then I wait to see which direction the prices will go. If they rise by the length of the signal candle, I will go long at my „Fibonacci line“. This has nothing to do with Fibonacci, I just use the tool to display multiples of the signal candle.

(Source: Tradingview.com) So I go long where the tool shows the „-1“ line. My analysis of gold in 2023 has shown that prices often run towards the „-8“ line after reaching the „-1“. You can also see my „take profit“ at the top of the chart.

I set the stop loss at the „1“ line. This is always the low of the long signal candle in the chart. The candle automatically goes from 1 to 0 using the Fibonacci tool.

This is how this trading system works. As I said, I can do some management by moving the stop loss further up. For example, if the prices reach the yellow „-4“ line, I will move the stop loss to the „-2“ line. This way, the prices still have some room to climb towards the „-8“ line. By having the stop loss at „-2“, I secure the profit. Then the trade will definitely end in profit.

If a trade goes perfectly and the prices reach the „-8“ line, the profit is around 350 percent!

Gold trading system in M30. I mentioned earlier that I wait to see how the prices behave after the long signal from the 3plus1 indicator. If they fall instead of rise, I have the following trading rule:

If the prices reach the „4“ line, I will go short. The target is then the „10“ line and the stop loss is placed at the „2“ line, which you can still see in the screenshot above. Only one system is traded at a time, depending on which point the prices reach first and trigger the trading system.

The record for this system in 2023: 97 percent return with 10 trades. 4 of them were stopped at break-even because I moved the stop loss. 3 ended in loss, 2 had a profit of around 50 percent, and 1 trade reached the maximum profit of nearly 300 percent.

As you can see, this system has more fluctuations than the one shown above, which had a record of 12 wins to 0 losses last year. But it’s nice to see how the patterns repeat themselves in the chart, which we can build on.

Since I am active in the 30-minute chart, it may take some time for the trade to end. Sometimes the prices reach the target immediately. And then there are trades that last for several days. It is important that I stick to my system. That’s the only thing I have tested. What I haven’t tested is how the results are if I start thinking about where the prices are going in between. We need to eliminate these emotions when trading, then we will have the best results. That’s why I will treat the trade exactly as it worked in the backtest.