Best approach for automated trading on XAUUSD (Gold) – Discussion

[Mose' Panizza]

Hello traders,

I’ve been studying and testing different approaches for automated trading on XAUUSD, and I wanted to open a discussion with the community.

From my experience, gold behaves very differently compared to forex pairs. It is much more volatile, reacts strongly to news, and requires a more selective approach rather than aggressive strategies.

I’ve noticed that many systems rely heavily on martingale or grid techniques, which can generate short-term results but often lead to high risk and unstable equity over time.

Personally, I’ve been focusing on a different approach based on:

selective entries

price action behavior

volatility filtering

strict internal trade management

The goal is not to trade frequently, but to trade with better quality and control.

I’m currently testing this logic on M5 timeframe with XAUUSD, using a RAW/ECN environment to ensure better execution and spreads.

So far, the results look more stable compared to traditional high-risk systems.

I’d like to hear your opinion:

Do you think a non-martingale approach can be more sustainable on gold?

What timeframe do you prefer for XAUUSD automation?

Do you prioritize frequency or trade quality?

Looking forward to your thoughts.