Gold Momentum Accelerator Algorithm

Long-term growth with low risk.
System for trading gold futures & CFDs. (XAU/USD)

Overview

The system primarily uses daily timeframe statistics to generate levels suitable for entries when all conditions are met. A new level is created each day, defining the threshold above which there is a high probability of the uptrend continuing. 

• Robust to high slippage and latency.
• Options to allow or avoid specific market cycles.

Market Cycle & Seasonality

In certain periods, the system may be less effective due to the cycle and correlations of gold with USD and the stock market. Historically, the best performance appears in inflationary cycles with a low interest-rate environment.

Settings & Recommendations

Timing Settings

• Entry Hour & Minute
• Exit Hour & Minute

Default timing is set to capture the full daily move because the price has a high chance of accelerating to the upside. It is set to begin after the first 15 minutes from market open and end 15 minutes before close to avoid periods with large spreads.

Stop & Profit Settings

• Stop Loss (%) — calculated as a percentage from the previous day’s low.
• Take Profit (%) — calculated as a percentage from today’s open price.

Percentage intervals are used for clearer statistical measurement and comparability across market regimes.

Seasonality Settings

• Double Tuesday — if set to true, position size doubles on Tuesday when Monday had a positive return. Intraday statistics in momentum periods show higher success on Tuesdays.
• Double December — if set to true, position size doubles each trading day in December (except Tuesday to avoid oversizing). Annual statistics over the last 20 years show more positive returns in December.
• Avoiding Months — if set to true, the system skips months with lower historical success: August, September, November. To minimize risk, it is recommended to skip at least September due to historically higher volatility in USD and the stock market.