Forex Education

Trading industry knowledge. Learn forex trading, investing in stocks, commodities.

Home » Education

The Best Moving Average for 5 Min Chart – Case Study with Video

by

In the recent article, we learned basic information about moving average indicators. However, a lot of traders these days use day trading strategies. Very often, on our fxigor youtube channel, I am getting questions about the best moving average for this type of chart.

I do not use short periods for trading, and as I am older, I am using more long-term trading strategies or swing trades, and for at least a couple of days, I keep my positions. However, the rule of thumb for every kind of strategy, you need to make tests. So if you conduct hundreds of trials and get statistically relevant results, you can choose the proper parameters.

Usually, quant traders use machine learning models to tune and find proper parameters for indicators. However, in this article, I created a simple testing strategy that you can also do. Instead of Metatrader, we will use TradingView (read our review).

The Best Moving Average for 5 Min. Chart Case Study TradingView

The best moving averages for the 5-minute chart are 20 MA and 50 MA. Based on 72 tests on the TradingView platform, results are generated on major USD forex pairs (EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, and NZDUSD).

We created one more experiment for a 15-minute chart too.

The best Moving Average for  15 Min Chart are 8 MA and 13 MA. Using the same strategy, we implemented all tests on 6 major forex pairs and got a similar result.

We used only five years time frame for each test.

Experiment methodology:

Step 1: Visit the TradingView page for strategy testing.

You can get a premium pro account here, but you need free for this experiment:

VISIT TRADINGVIEW

Step 2: Choose wished chart and set the time frame to be 5 minutes.

tradingView chart GBPUSD on 5 minutes

Step 3: Choose MovingAvgLineCross from the list of scripts. Using this EA, you will buy when you have a bullish cross and sell after a bearish cross. In this case, you can evaluate which period crosses are the best.

pick moving average cross strategy

Step 4: Set periods and test strategy.

run moving average crossover strategy

You will get the profit factor and testing results in just a few seconds.

 

The Best Moving Average for 5 Min. Chart Case Study MT4

If you like MT4, you can test and choose the best moving average for 5 minutes chart. In this case, you need to download our EA for moving average crossover:

Download Moving Average CrossOver EA

Steps:

  • Download MT4 EA to test moving average crossover for different periods.
  • Copy .ea expert advisor into Experts Folder.
  • The EA inputs set periods in the fields “Fast moving average period” and “Slow moving average period.”
  • Run EA and test various variations.

fast and slow ma periods in MT4 EA

Case Study results

We made a lot of combinations of moving average periods. We tested major currency pairs in the last 10 years, from 2012 up to 2022. For each currency pair (EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, and NZDUSD) test is done using a per one-period combination and the average profit factor is estimated.

Fast PeriodSlow PeriodAverage Profit Factor for major USD forex pairs
20501.23
8231.18
10251.11
8321.05
10301.03
8160.99
8130.97
502000.9
201000.87
1002000.77
501000.74
10200.56

The profit factor represents the average profit factor estimated from 6 test results for 6 major forex pairs.

Period combinations are made based on finance literature and trading experience.

Conclusion

High-volume traders usually use periods such as 10, 20, 50, 100, and 200 in the trading routine. Because of that, the case study result is not unusual. However, periods 8 and 23 showed significant statistical impact in our results, so if you are a day trader and trade on 5-minute charts – you can use our results to improve your trading.

Calculate Crude Oil Lot Size – How to Read Oil Pips?

by

A recent article showed how oil trading works and how to calculate gold pips. But let us start from the beginning.

Crude Oil Profit Calculator – USOIL pip calculator

What is Crude Oil?

Crude oil represents a natural fossil,  unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Crude oil can be refined to produce usable gasoline, diesel, and various other petrochemicals. The most famous types of crude oils are WTI Crude Oil and Brent Crude Oil.

The difference between Brent crude and WTI crude oil is that WTI originates from U.S. oil fields, and Brent Crude originates from oil fields in the North Sea. Usually, WTI is slightly “sweeter,” “lighter,” and lower in price than Brent.

WTI Crude Oil

WTI, or the West Texas Intermediate, is a grade or a mix of crude oil. Its spot and futures prices are used as a benchmark in oil pricing. Its grade is light crude oil due to its relatively low density. In addition, the presence of sulfur makes it the sweetest. Therefore, it refers to the New YorkMercentile Exchange WTI Crude Oil futures price. 

crude oil production

What is USOIL in forex?

USOIL in forex platforms such as Metatrader represents light sweet Crude Oil. Usually, the Metatrader USOIL symbol is WTI (West Texas Intermediate), USOIL, or Crude Oil.

 

There are various ways crude oil can be traded; our focus will be on retail forex trading platforms for this instrument. Let us see how to calculate oil in the WTI forex platform Metatrader.

WTI Crude Oil Price – USOIL Price Today

Lot Size of Crude Oil – oil pips in MetaTrader

The minor price change for Crude Oil is 0.01 or 1 pip. So when the price rises from 40.00 to 40.01, it is 1 pip.

If we trade oil on the Metatrader platform, 1 micro lot trading size for 1 pip target is $0.01. If we buy 1 micro lot from 40.00 to 40.01, it is $0.01 or 1 pip. If we buy 1 mini lot from 40.00 to 40.01, it is $0.1 or 1 pip. If we buy 1 lot from 40.00 to 40.01, it is $1 or 1 pip. When traders calculate oil pips than  1 lot oil trading size, 1 pip move equals $1.00.

Many brokers give you 1:500 leverage on this instrument. 1:500 leverage means you can operate a capital of $500 in the market for every dollar you invest. This is what you need to open a 10-barrel position.

Other than the capital required to open a position, it would help if you had marginal capital to support any floating losses. You will lose 5 pips as soon as you open a position as it is its spread. 

The leverage offered by brokers is not always this high. Some brokers offer leverage as low as 1:40. You will need more significant capital to open a position and support floating losses in such cases. 

Pip Value of Crude Oil

A pip denotes the slightest change in the price of an instrument. It helps identify how a tool in the market has witnessed much fluctuation. For example, by most trading platforms, a crude oil pip is considered $0.01. Remember that 1 lot oil trading size, crude oil 1 lot price, and 1 pip move are equivalent to $1.00.

 

How to Calculate Profit and Loss using Oil Pips in the Metatrader platform

Using the information that 1 lot oil trading size for 1 pip move is equivalent to $1.00, traders can easily calculate oil forex trading size position in Metatrader. This principle will help traders learn how to trade crude oil on the forex MetaTrader platform.

The trader bought 1 lot at 40.55 and closed the trade at 40.90. In this example, the trader generated 45 pips profit. Because the trader had a position size 1 lot, his gain was $45.

Buy 1 lot, gain 45 pips, profit $45.

Buy 10 lots, gain 45 pips, profit $450.

 

How to Calculate Profit and Loss when we have barrel contract

Let’s calculate oil pips for barrel contracts for the smallest position.

In a 10-barrel contract, the oil pip value would be $0.01*10 barrels = $0.10.

This oil pip value is stationary as the U.S. dollar is the quote or counter currency in the crude oil and U.S. dollar pair.

Let’s understand how profits and losses are calculated using crude oil signals by referring to this example:

Let’s assume that you buy 200 barrels of crude oil at $50 each, and your profit is $55 each.

The easiest way to find out your profit is by using a simple arithmetic equation:

(Profit gained at one barrel – the cost of one barrel) * Number of barrels bought = Total Profit

($55 – $50)*200 = $1000

You can also calculate the total profit and loss using the pip value of $0.10. You can multiply the number of pips by $0.10, which is then multiplied by the lot. The result will again be $1000.

Crude Oil and Related Instruments

The oil price is a crucial fundamental factor that can manipulate the value of a currency, especially if the country is a significant exporter or producer of oil and oil products. For example, Canada exports a considerable part of its petroleum products to the U.S. the Canadian dollar (CAD) enjoys a stronger position when the traded oil prices are higher. However, a drop in oil trade volume or an increase in the instrument’s prices will negatively reflect its currency and subsequent currency pairs like USD/CAD. Other currencies correlated to the trading oil prices are the Danish Krone (DKK) and the Norwegian Krone (NOK).

How to analyze Oil prices outside MT4?

If you need to analyze Oil prices, calculate pips, predict trends, and test Oil trading strategies, you can use the Machine Learning platform TrendSpider.

trends analyzer

 

What Affects Oil Price?

Like any commodity, the oil price also fluctuates. The rate of consumption and production are two events that affect it. For example, a declaration by the United States stating that a considerable amount of energy has been drawn from their reserves proves that there has been an increase in oil consumption. Since the demand has certainly increased, the prices will likely increase. This can be avoided only if the subsequent supply also increases. 

The oil prices will drop if the demand declines or the supply overpowers it. 

OPEC’s news also has a significant impact on the price of oil. The prices can spike rapidly if the Petroleum Exporting Countries (OPEC) Organization decides to reduce production. Investors will buy oil in considerable numbers to profit from it, leading to a further decrease in its supply.

War in the oil-producing country, delay in oil shipments for reasons like bad weather, damage to oil pipelines, a change in USD and other currencies, and technology are a few more factors that affect the oil price. However, the list is not limited to these factors.

The Richest Traders in the World in 2022. – Billionaire Traders

by

Forex is the largest financial market in the world. You would probably know a few things about this fascinating field, where people trade their preferred currencies on an intraday and swing basis. You may be thrilled that around 5 trillion dollars of transactions occur daily on forex. Its dynamic nature and opportunities attract traders worldwide to jump into this ocean of currencies.

Well, we have got you. This article has written the success story of top billionaire traders worldwide like George Soros, Carl Icahn, Ray Dalio, David Tepper, and James Simons. It would give you an idea of becoming a professional trader, what mistakes to avoid, and what thoughts to keep in mind.

Billionaire traders are the wealthiest traders in the world, earning more than 1.000.000.000 dollars from trade assets. The most famous billionaire traders are George Soros, Carl Icahn, Ray Dalio, David Tepper, and James Simons.

The Richest and most famous active traders in the World list in 2022 are:

  • George Soros (8.6 billion dollars)
  • Paul Tudor Jones II (7.3 billion dollars)
  • John Paulson (4.0 billion dollars)
  • Andreas Halvorsen (6.3 billion dollars)
  • Bill Ackman (3.3 billion dollars)

Investors and active traders are different notions because investors are looking for a more significant return over an extended period through buying and holding. Conversely, active traders take advantage of rising and falling markets to enter and exit positions over a shorter timeframe, taking smaller, more frequent profits.

Before you see the wealthiest traders, you should check the free Financial Markets course created by Robert Shiller, a Yale professor. This course will help you understand financial markets and how these traders made their fortunes.

If you want to follow trades of prominent investors and wealthiest traders, you can do that simply if you use the Corporate Insider Transaction Tracking Trendspider platform. Please see that in action below:

trendspider insider trading analysis - spy rich investors

Above is presented Trendspider platform. One of the options is to follow the trades of big investors.

The Richest Traders – best stock traders of all time

The top 15 most prosperous stock traders in the US in 2022. are:

  1. Warren Buffett $107.2b
  2. Jim Simons $24.4b
  3. Ray Dalio $20b
  4. Carl Icahn $15.6b
  5. David Tepper $15.8b
  6. Ken Griffin $20.8b
  7. Steve Cohen 15.9b
  8. George Soros 8.6b
  9. Israel Englander 10.5b
  10. David Shaw 7.5b
  11. David Siegel 6.5b
  12. Chase Coleman III 10.3b
  13. Paul Tudor Jones II 7.3b
  14. Bruce Kovner 6.2b
  15. Stanley Druckenmiller 6.8b

(We regularly update billionaires’ net worth, and the list is sorted by average yearly net worth )

Please see the video of how the fortune of the most prosperous forex traders grows over the years:

The video above shows George Soros’s net worth over time in the last ten years.

 

Top 5 Famous Billionaire Traders in the World

george sorosGeorge Soros

 

“If investing is entertaining,

if you are having fun,

you’re probably not making money. Good investing is boring.”

 

The richest trader in the world is George Soros, whose fortune is 8.6 billion dollars ($ 8.600.000.000). The managed clients’ money actively from 1969 to 2011. He will be remembered as a hedge fund investor, Holocaust survivor, leading philanthropist, and most famous financial speculator.

You can read the biography of how did George Soros make his fortune.

George Soros is the first billionaire trader on our list. Regardless of being new or experienced, everyone would have heard about George Soros being the most versatile and richest trader globally and how he broke the Bank of England. But what’s the aftermath? Let us shed light on it.

George Soros was a famous hedge fund manager who managed his clients’ money from 1969 to 2011. His hedge fund, which he started in 1973, became famous as the Quantum Fund. Though, the event that happened in 1992 changed his life.

He made a bet against the British Pound and created a fortune of $1 billion. After this, he got famous as the man who broke the Bank of England. He also made history for creating a vast amount in just one day. Fascinating, isn’t it?

He runs his firm and is a founding member of Soros Fund Management, LLC, a managing hedge fund. Since its inception, the firm has already generated earnings of $40 billion. They have also started Central and Eastern Europe-focused Open Society Foundations and Quantum Fund, which is said to have a grant of more than $14 billion.

Soros has given its organization the belief to support individuals and organizations worldwide and support the right of equality, freedom of speech, and much more. He also donated $18 billion in 2017 to its foundation to pursue future projects. Soros also indulges in philanthropy and contributes to improving this world by donating money and sharing wisdom. Traders around the globe widely follow his views and thoughts on investing, trading, and economies.

Though time was not this kind to Soros initially, he was born in a Hungarian family but avoided getting deported; they took shelter in a Nazi Concentration Camp. Then, at 17, he left the nation to fulfill his dreams and goals. He started as a railway porter and waiter at a London School of Economics nightclub. And from there, his career started paving the way for the future hedge fund tycoon.

His hard work and dedication prove that no matter your background or past, you can achieve anything you want if you have the fuel of passion and the willingness to work hard. Then, it is on you to make your fortune!

Carl Celian Icahn - investorCarl Icahn

“The cardinal rule is to have enough capital at the end of the day.”

Carl Icahn is another billionaire trader on our list. There are so many traders on Wall Street, but the question is, how many of them succeed? Well, Carl Icahn indeed did. His wisdom and intelligence made him an investment icon so much that his comparison with Warren Buffet is not new. Some even claim him to be better and wiser than Warren Buffet!

Icahn was born in a teacher’s family in New York. His uncle M. Elliot Schnall, with whom he was close, helped buy him a seat at the New York Stock Exchange by giving him a loan worth $ 4,00,000. That is what started the history of this typical New Yorker. 

Icahn bought TWA (Trans World Airlines) in the mid-80s. It was the diciest investment he had ever taken, as the company filed bankruptcy in 1992, though it came out of it just a year later.

Icahn Enterprises, known as Icahn’s holding firm, invested in diverse international and American companies like Netflix, Apple, Revlon, Motorola, Time Warner, Viacom, etc. His witty and timely investments soon made him a fortune of $17 billion, and he became the richest trader in the world.

Traders are fascinated by Icahn’s trading strategies and how he never feared taking risks and finding profitable opportunities. His trade always worked out the best for him, like magic. One should not underestimate his experience and knowledge in this field for just an illusion called a miracle! It was his hard work and dedication.

Carl Icahn is known to have active and aggressive trading strategies. His active trading often led to changes in his investing positions, increasing his stock positions’ value. Just like Soros, Icahn is a philanthropist. He is an economic advisor, too.

He often states a quote to his fellow investors – “Don’t always believe what the market tells you. If you think you’re right, stick to your instinct.”

Ray DalioRay Dalio

“It is far more common for people to allow ego to stand in the way of learning.”

Ray Dalio is another story of success. He grew up in a middle-class family on Long Island and started his market journey when he was 12. He used to earn money as tips while being a golf caddy. The turning point was that most of these golfers were working on Wall Street, and that’s how he started feeling interested in the realm of the market.

In 1975, he got an MBA from Harvard Business School and launched Bridgewater – the company he started from his two-bedroom house in New York! The company succeeded in the 80’s era, and in 2011, it became the largest hedge fund in the world. Bridgewater currently handles assets worth $160 billion. Ray Dalio’s net worth will be $16.9 billion in 2021.

Another interesting story about him is that he predicted the Global Financial Crisis in 2007. He explained the same in his essay “How the Economic Machine Works: A Template for Understanding What Is Happening Now.” In addition to his essay, his book – “Principles” is also trendy among the traders and investors in which he goes into philosophy after his investment moved. He also dwells on his experience of self-analysis and corporate experience.

Ray Dalio forex trading

Ray Dalio often sees prices rise on bad news and fall on the good news in the forex industry. Based on his opinion,  the critical question isn’t what the economic news number will be but what is expected. For example, the US GDP number can be better than expected in forex news, but future projections in the GDP statement can be very bad, and because of that, the USD price will fall after the news.

His principles resonate with the young generation of traders and business people on keeping their authenticity and integrity, listening around, and observing the events better at their job. He says that money was never a driving force in his book, leading to his exciting and memorable life.

Ray Dalio believes in sharing his success story with other traders and investors. He has also donated more than $700 million for different philanthropic moves. His Dalio Foundation also supports inner-city education, nature conservation, and microfinance.

david tepper traderDavid Tepper

“I think people should be self-reliant. You should work and be self-sufficient. That’s what I did.”

If we are talking about billionaire traders, how can we forget David Tepper, the world’s most outstanding hedge fund manager!

He was born in 1957 in Pittsburgh, Pennsylvania. He completed his graduation with Economics honors, after which he initiated jumping into the world of investment. Yes, at quite a young age. His career started as a credit analyst, which helped him understand the concept of investment and management. He also learned deeply about the credit structures of troubled companies.

His forte of selecting a distressed company and converting it into a profitable one made him famous. He did the same with bonds, buying bonds from banks on the edge of getting bankrupt around the ’80s. But when those banks sustained the bond market crash, he made a fortune over his thoughtful investments.

In the ’90s, he founded the famous hedge fund company Tepper’s Appaloosa Management, which handles more than $15 billion.

Just like other richest traders in the world, Tepper too is known beyond the world of stocks. He gives his fair share back to society by donating to schools, universities, and academic institutes and sponsoring student scholarship programs.

jim simons teachingJames Simons

“Past performance is the best predictor of success.”

James Simons is a known and intriguing figure on the billionaire traders list. We wrote intriguingly as Simons is a hedge fund manager, a mathematician, and a quantitative investor. He is famous for his work on pattern recognition and string theory development. He is also renowned as the world’s most brilliant billionaire.

He was born in Newton, Massachusetts, in 1938. He worked at a garden supply store when he was a teenager. With his determination, hard work, and curiosity to do something, he earned a Ph.D. in Mathematics at 23.

He started a team of professors, engineers, and scientists to fulfill his passion for mathematics and trading by building an algorithm that could predict any financial instrument price change. And that is what we can call the foundation of Quantitative Analysis.

Simons also founded Renaissance Technologies, earning him the title of the world’s richest trader. The company is a very famous hedge fund managing firm across the globe.

James Simons has expertise in finding patterns using mathematical models. It has also helped him analyze hedge funds with the top most accuracy. He is truly a talent overachiever. His love and passion for mathematics can also be seen in his investment techniques and strategies.

His philanthropic work includes donating $2.7 billion to various good causes. His net worth at present is said to be around $20 billion.

Who is the best futures trader in the world?

The best futures trader in the world is Jim Simons, based on the futures trading success rate in Medallion Fund. However, the most iconic futures trader is Lee Stern, who began his trading career in 1947. and he is the longest-tenured trader at the Chicago Board of Trade.

Conclusion

“There is no real common sense except for good luck, which is a perfect substitute for everything.”

Among these top 5 most prosperous traders, the common thing we saw is their passion and knowledge about this realm. We hope our list has helped you get inspiration and provided you with insightful stories. These billionaire traders are self-made and have made their empire from scratch with hard work, consistency, and a never-give-up attitude.

With the evolution of the financial market, many online platforms are now available for forex trading. It also makes it easier for ordinary and small traders to enter the market and hold their position. With the digital era and many information and research papers available, one can quickly learn how to trade. It also inspires individuals to taste their knowledge in this field.

Whether a new or experienced trader, the ultimate goal remains the same – to earn a profit. But in the end, doesn’t everyone want to be a millionaire trader? Of course, you would like to see yourself as the wealthiest trader in the world at some point in time.

As a trader, you can learn a lot by observing such successful traders and investors. Their experience, knowledge, and learnings are vital and fascinating. They teach us that money can not be made overnight; you work hard over the years. An overnight success, too, would be a miracle after years of dedicating your life to your goals. We hope that this list will come in handy for you and that you get success on your path to becoming another successful trader. Who knows, the next time you might be on our list?

How to Calculate Gold Pips? – XAUUSD in Lots and Ounces

by

Gold is one of the most common and rewarding metals you can choose to trade. With the right trading strategy and spread-betting platform, trading gold more or less resembles Forex trading.

Gold trading strategies are diverse and primarily encompass fundamental, sentimental, and technical analysis. In addition, gold is usually priced in US dollars, which helps in market analysis. Therefore, we will examine why you should trade gold and some strategies to exhaust for maximum returns.

One of the biggest problems for new traders is calculating gold and calculating pip value for gold.

Pips in gold

Pips in gold assets represent a price movement of 0.01 for most MT4 and MT5 brokers, while for currency pairs, a pip price movement is 0.0001. For example, when gold prices move from 1851.70 to 1851.71, it is 1 pip movement.

Below is presented 22 pips difference between the bid and ask price for gold assets.

pips in gold

gold trading capital ad

How to calculate gold pips?

To calculate gold pips, you must know that 1 pip gain represents a 0.01 move in the gold asset. So, for example, when the gold price changed from 1851.70 to 1851.71. it is 1 pip move. However, if the price moves from 1851.00 to 1852.00, it is 100 pips move.

How to calculate pips if you trade in lots in Metatrader

Calculating pips for gold is a process we need to calculate in the first step number of pips. For example, for gold or XAUUSD, 1 pip has a value of 0000.01 for 5 digits brokers, but it is different for 4 digits brokers. How to read pips on gold, then?

How to Read Pips on Gold on the MetaTrader platform?

If we trade gold on the Metatrader platform, 1 micro lot trading size for 100 pips is $1. If we buy 1 micro lot from 1693.00 to 1694.00, it is $1 or 100 pips. If we buy 1 mini lot from 1693.00 to 1694.00, it is $10 or 100 pips. Finally, if we buy 1 lot from 1693.00 to 1694.00, it is $100 or 100 pips.

XAUUSD pip count Table:

XAUUSD pip countPip value per 1 standard lotsPip value per 1 mini lot
XAUUSD1 USD0.10 USD
XAUEUR1 EUR0.10 EUR

xauusd pip count MT4 platform

When we trade the gold, instead of calculating the number of pips, XAUUSD pip count, we ask how many cents (dollars) XAUUSD or gold is going up or down. In Metatrader, traders calculate gold pips based on dollars and lots.

Watch the video on how to calculate pips for XAUUSD below:

Calculating the dollar for gold trading is easy when changing the number of pips and lots.

One of the best tools for Gold Pips analysis and prediction calculation is TrendSpider Machine Learning’s automated technical analysis software.

gold price pips and trends

Above is presented how Trendspider detects Gold price trends.

How to calculate gold pips when gold is traded in ounces?

Gold can be traded in ounces on some trading platforms instead of lots. For example, if you buy 20 ounces of gold at an entry price of $1400 and take a profit value of $1401.33, you can earn 20 ounces* 133 pips = 2660 pips because from $1400 to $1401.33 are 133 pips.

To convert ounces into trading lots and dollars, remember:

  •  1 ounce of gold (XAUUSD) is 1000 units or 1 micro lot with a pip value of $0.01.
  • 10 ounces of gold are 10,000 units or 1 mini lot with a pip value of $0.1.
  • 100 ounces of gold are 100,000 units or 1 standard lot with a pip value of $1.

How to calculate gold pips from ounces to dollars

If we trade gold on different platforms than Metatrader, where trading is not in lots than in ounces (oz), then we have:
*For Gold: Position Value in GBP / Price of Gold / 100 oz = Volume or contract size in lots
*For Silver: Position Value in GBP / Price of Silver / 5000 oz. = volume or contract size in lots

To give an example:
*For Gold as example: £50000 / 1293.40 / 100 oz = contract size of 0.38 lot
*For Silver as an example: £50000 / 19.5340 / 5000 oz. = contract size of 0.51 lot.

Similarly, as described in our article, crude oil pips can be calculated.

 

How to count pips on gold?

The best way to count pips on gold on Metatrader is to remember that $1 is 1 micro lot for 100 pips. So, in the same logic, 1 mini lot trading size for 100 pips is $10, and 1  lot trading size for 100 pips is $100. So, for example, 1 lot gold forex trading size for 1 pip is worth $0.1.

Let us give one example:

How to count 50 pips in gold?

To count 50 pips in gold, you need to remember that 1 micro lot for 50 pips target is $0.5. Thus, 1 mini lot for 50 pips target is $5, and 1 lot for 50 pips target is $10. Most forex MT4 brokers have this calculation. However, some brokers calculate gold pip in different ways.

How to calculate pips for XAUUSD?

To calculate pips for XAUUSD (gold), you need to know that 1 pip gain represents a 0.01 move in XAUSUD (gold). So, for example, when XAUSUD price changes from 1834.00 to 1834.01. it is 1 pip move. However, if the price moves from 1834.00 to 1835.00, it is 100 pips move.

How to calculate 1 lot XAUUSD?

1 lot XAUSUD you can count as $0.1 for one pip move. So, for example, if you buy 1 lot XAUSUD, and the price goes from 1800.99 to 1801.99 (100 pips gain), you will make $100.

How to calculate lot size for gold?

If you calculate 1 lot size of gold in Metatrader, it has 100 000 units, and 1 pip of movement is worth $1. For example, when the gold price goes from 1800.00 to 1800.01, this 1 pip move for 1 lot is worth $1. If the price goes from 1800.00 to 1801.00, this 100 pips move for 1 lot of gold worth $100.

 

What is XAUSUD leverage?

The XAUSUD leverage is the minimum margin requirement for the trader, so if your leverage is 1:100, you can borrow 100 dollars for every dollar you have in your Gold trading account. So, for example, if your leverage is 1:100 and you have $1000, you can control your $100 000 investment.

Why trade gold?

Times have changed, and so has the gold trade. Before, traders had to buy the metal and later resell it, which proved challenging. Futures and options were then introduced, where traders traded without ending up with a complete set of different valuables. As time progressed, Gold exchange-traded funds came, making trading more comfortable. Gold traders traded gold the same way stocks are sold in the forex market. By far, we have the best approach to the gold trade. Nowadays, the gold trade and forex trade are more or so similar.

Spread-betting platforms have made gold trading one of the most straightforward ventures. Like currency trade, all you have to do is buy or sell, depending on the price predictions. One of the gold trade advantages is that, unlike the currency, you are dealing with a physical commodity. Another reason you should trade gold is that it is mainly used as a store of value. Finally, unlike the currency, it is not subject to many government regulations.

Gold trading strategies

There are several strategies you can employ when trading gold. Some of the most common include studying the market forces, positioning of gold traders, the technical analysis, which is quite demanding and using a gold chart in the research. However, the best strategy combines technical analysis, fundamental analysis, sentiment analysis, and the gold chart.

The sentimental analysis allows traders to spot trends, whereas the gold table determines when to enter and exit a trade.


Advantages of trading gold over forex

Gold trading advantages are that price is not correlated to inflation, and supply and demand have the most critical impact on the gold price. Gold trading has its fair share of advantages that forex trade cannot meet. Gold is not affected by the government’s financial controls or Central bank regulations since it is mainly used as a value store. This means that gold is rarely affected by inflation, which is one reason why many currencies have been rendered worthless.

Gold can also be a safe and vital asset, including treasury bonds and currencies like the Japanese Yen and the Swiss Franc. Instead of worrying about risky trends, a trader can rest easy by acquiring gold and other assets. You can also sell these assets when the risk appetite grows instead of going for stocks and currencies with unfavorable interest rates.

Gold is actively traded 24 hours a day, which gives it an edge over foreign exchange. Different markets close after New York completes forex trading, reducing trade volume and price movements that the traders can take advantage of. On the other hand, gold exchanges happen all the time, which gives this precious metal high liquidity.

Trading gold is cheaper than currency trade because it heavily leans market liquidity. As a result, gold records the highest trading volume compared to all the currency pairs. There is also a slight difference between buying and selling prices.

What you need to keep in mind

Unlike the associated assets, gold is traded chiefly against the US dollar, which implies that the dollar’s value will indirectly influence the price of gold. When there is an increase in the value of the US Dollar, the cost of gold falls.

Gold trading strategies

Technical analysis

Technical analysis is one of the most common gold trading techniques. It entails studying the gold chart and identifying the changes in market conditions. The period between 2005-2015 recorded a sizeable trend. However, from 2015, gold has recorded a predictable range, mostly $400. The best approach for trending markets is to use a momentum strategy, whereas a range strategy suits a range-bound need.

How do I use the technical analysis technique?

The best way is to take advantage of the former highs and lows in the gold chart, trendlines, and chart patterns. One should note a rise above the current level during an increase in price and a fall above the current during a price decrease. To establish resistance, look at the line connecting the previous highs for an uptrend.

For a downtrend, look out for the lines connecting the former lows. Since technical analysis also requires noting the chart patterns, do not miss the tops’ double bottoms. As you progress in the technical analysis method, feel free to incorporate momentum indicators and more challenging prediction techniques.

Tips that you can take advantage of when trading gold.

Whether you are a beginner or an advanced gold trader, you can exhaust tips for maximum returns. However, for the fundamental analysis technique, a beginner should consider the market sentiment and the direction it is likely to move. Positive movement signifies a fall in prices and a negative price change.

An advanced trader should also consider the dollar on top of the market sentiment analysis. Since gold’s dollar price has stayed stable over time, such a trader can buy gold when political factors threaten and sell it later. Such traders should also take note of the output figures from the primary gold companies.

You should also apply the forex trading tips. In addition, factors such as risk management, targets, and leveraging should be taken into account. Before buying gold, make sure that you consider the industrial demand for gold and gold jewelry. It would be best if you looked out for the Central Bank too.

Gold trading Insurance -Market Leading Insurance

When you trade gold, it is essential to trade using regulated forex brokers like HF Markets, which has made efforts to safeguard its liabilities against Clients and other third parties with a Civil Liability insurance program for a limit of €5,000,000, which includes market-leading coverage against risks such as errors, fraud, omissions, negligence.

Gold pip calculator

The gold pip calculator is presented below. Please add the size and the number of gold pips to see the worth in dollars:

Trading Gold in Different Ways

As we have mentioned earlier that you can always trade gold physically. But, if you are planning to do it electronically, there are different ways of doing that. You can trade gold ETFs or Exchange-Traded Funds, gold CFDs, gold futures contracts, and more. If you are doing electronic trading, you need to find a good trading platform to enter a trade and profit. If you plan to do it in a significant volume or are new to it, it is advisable to work alongside a broker.

Conclusion

When we trade gold, the crucial thing is that we need to know to calculate pips for gold and calculate profit in dollars because it is not the same as we trade forex. You should, however, make some considerations before buying and selling gold. Me sure, therefore, that you use both the fundamental, sentimental and technical analysis techniques.

Trade Gold & Silver

Can You Roll an Annuity Into an IRA? – Annuity Rollover Rules

by

Annuities are a crucial part of the portfolio for any trader, as it is sheltered from taxes and help the capital grow without hefty penalties. However, they are tricky to understand due to their foundation in the life insurance field. Hence, if you have an annuity in your portfolio, it would be better to use it for a different purpose or change it into an IRA. This is possible if you are fully aware of the formalities attached to the process.

What are qualified annuities?

Annuities represent retirement savings plans funded with pre-tax dollars, similar to Roth IRA. Your contributions are made in after-tax dollars to avoid any deductions for your contributions.

Moreover, you will not be required to pay taxes if you contribute to the plan. Qualified annuities are included in a 401(k)/ 403(b) plan, which is eligible for tax deductions. This is not the natural choice as it is already a tax-sheltered option, but some employers give it as an investment alternative. Hence, if you have an annuity in the qualified plan, you can transform it into an IRA; if not, take it up with the IRS.
(Read our article Augusta Precious Metals Review and How is Gold Taxed in an IRA to learn more about this topic.)

VISIT AUGUSTA GOLD IRA

Can You Roll an Annuity Into an IRA?

Yes, you can roll over an annuity established with pre-tax dollars into a traditional IRA. However, you can roll over only qualified variable annuities. Usually, If you apply for rollover, the annuity company will make an electronic payment or issue you a check for the total value of your annuity.

VISIT GOLD IRA COMPANY

What is a non-qualified annuity?

A non-qualified annuity or “after-tax retirement annuity” represents a retirement plan you pay for with after-tax money. Remember,  non-qualified annuities are not tax-deductible.

This kind of annuity is the most prominent and the one that is the most tricky to get the money from. The invested money is not taxed as you already paid after-tax dollars as a premium. However, your profits are taxable, just like normal income. Hence, after you turn 59 ½ years old and cash out the amount, you will be obliged to pay 10% in taxes. You can also incur a surrender fee if you have owned the annuity for lesser years. Hence, you will pay the taxes and penalties and will not be able to transform your annuity into an IRA.

Meaning of rollovers and transfers

The best way to convert an annuity to an IRA is to transfer the money from the annuity to the IRA. All you have to do is notify the companies that own your holdings and oblige with some formalities. The money will easily be transferred, and you won’t have legally binding responsibility for it! If you want to do this through a rollover, you will get a check or e-payment for your annuity’s value. You can add this money to your IRA within 60 days to avoid penalties. Or you will incur taxes on it, like a non-qualified annuities fund. 
(Read our article Gold IRA Rollover to learn more about this topic.)
 

Other options

If your money is a fixed rate annuity, you can still acquire high returns through equity investments. In this manner, almost every company will allow you to transform your annuity into a variable annuity. These annuities invest in mutual funds or other financial investments to get greater returns without heavy penalties. If your current annuity has a high fee and too many limitations, you can use the 1035 advantage to transfer it to another company. However, ensure that the transfer to another company does not put you in the same situation again, as all your work will be for nothing then. 

(Read our article What is Gold IRA? to learn more about this topic.)

VISIT GOLD IRA COMPANY

Diversify your savings with a gold IRA.

Gold & silver portfolio-building assistance from product professionals.

VISIT GOLD IRA COMPANY

Spanish language

Spanish language website

Privacy Policy