Even in Forex market, gold is an invaluable asset when it comes to trading. Often considered a failsafe by experts, gold offers the stability that many traders seek. In the foreign exchange market, gold is denoted by XAU. This indicates one troy ounce of gold which is roughly a little over 31 grams.
Since gold is often traded in the market during unstable times, the Forex gold trader robot comes in very handy for new traders who do not understand the intricacies of trading gold against currency.
Here are some features of this Forex robot trader download software that makes a difference.
- Used in Meta Trader 4 platform, the automated gold trader uses a grid trading strategy to trade XAU – USD pair.
What is grid trading?
In a grid trading system, the Forex gold trader robot opens up multiple buy and sell stop orders on different levels. Once this is complete, the trader has to set take profit margin for each of those orders. After this, there are three possible scenarios through which the trade can end.
In the first scenario, the trade opens and either hits all the buy orders or all the sell orders. This way, the trader closes the remaining ones that aren’t activated and takes profit.
The second scenario, however, is the most profitable. The Forex robot trader download software takes profit as the price hits all of the buy and sell targets one after the other. This way the trader accomplishes all his take profits.
Least profitable of all is the 3rd scenario. The movement opens up most of the trades but misses their take profits. This leads to loss accumulation. Although, in most cases, as in XAU – USD trades, grid trading is most profitable.
There is no need for indicators in the gold automated trader making it easier for newbies to understand the trading method.
Most experts have had a lot of success with this auto robot trader for gold. As it is widely profitable, traders often resort to this during periods of losses to make some fund recovery.
*Note: XAU – USD is also a popular hedging method since gold reacts differently in the market compared to other assets. In most cases, either interest rates minus inflation or USD value affect gold value. Both cases are dependent on gold being inversely proportional to their value.
A realistic example is when rate of interest plummets, traders rapidly move towards gold as bonds and currencies offer fewer returns. Since market values gold in dollar, it holds true for the currency also.
Forex gold trader robot comes with two automated risk modes. Its recommended risk mode initiates hedging features while the overleveraged looks for maximum returns with significant risks.
After understanding these features, take a look at why traders prefer to trade gold.
Reasons for XAU – USD Popularity
Reduces market uncertainty for traders
Hedging against inflation
Retaining trade profit value during sudden currency dips
So, gold can be quite the Forex savior for new traders unsure of the next step. The Forex trader robot download for gold trading just helps things get simpler.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.