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

18 Sep

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.

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.



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



Then, find the trade with the biggest stop loss in pips.
In our example, the biggest stop loss is 353 pips.



Open a position size calculator for Gold.

As an example, we will apply some free position size calculator.

Fill all the inputs.
As a risk ratio, input 2%.

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%.

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



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.

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.

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



The biggest stop loss in our example is 997 pips.

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.

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



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

500$ trading account will not be 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.

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.



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

1000$ account will not be 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.

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

0.07 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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