TradingView offers a great deal of built-in and community-led features, including Indicators and Strategies. It is the latter feature that I will discuss in this trading guide in relation to trading one of our clients' favourite instruments to trade, gold.
Strategies are programmes, written in the Pine Script language, which can execute, modify, and close buy and sell orders. The Strategies are programmed to perform these actions automatically when certain conditions are met as it relates to a tradeable asset. You can think of Strategies as automated trading robots.
TradingView has thousands of Strategies that you can run on your charts. Strategies are typically created to work best with certain instruments and certain time frames. But bear in mind, that not all Strategies are created equal, and you should be very careful with what Strategies you select and ensure that you back tested them before deciding to implement them in a live trading environment.
With the cautions out of the way, lets now dive into two TradingView Strategies that are popular with gold traders.
The BTP/SLB Strategy will enter sell trades when the price of gold closes above the look-back period’s 200 SMA. Once the script enters a trade, the BTP/SLB will hold the trade until it hits its percentage-based stop loss or take profit level.
Using TradingView’s Beta ‘Deep Backtesting’ feature, we can see that the 30-minute time frame appears to be one of the most successful periods to apply this Strategy on. It might pay to alter the Stop loss percentage from the default 2% in order to maximise the Strategies win rate.
A note caution: the Strategy appears to disregard the trend direction of the SMA. We can see that the Strategy frequently enter losing trades when the market is in a longer-term upwards trend (see the candles around late-July to early-August). To overcome this limitation, it might be wise to simply apply the Strategy to your chart without activating it, so that you can manually enter a trade after the Strategies conditions are met, but you can also eye a general downtrend over a longer-term timeframe.
The XAU/USD RSI EMA 1hour Strategy follows some simple rules using data from an RSI and an EMA. When the price of gold is above the EMA and the RSI indicates high oversold conditions, then the Strategy enters a long trade. Conversely, when the price of gold is below the EMA and the RSI indicates low oversold conditions, then the Strategy enters a short trade.
I would suggest that you ignore the name of this Strategy and explore the use of this Strategy on lower, especially if you are interested in entering and exiting trades frequently. However, the accuracy of the Strategy may change on these different time frames, but an exploration could prove fruitful under the right conditions.