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💡 Best Practices

Pro tips for consistent trading success

Trading Like a Professional

These best practices are compiled from thousands of successful GAIN OPTIMIZER users. Follow them to maximize your results and avoid common pitfalls.

🏆 The 10 Commandments of GAIN OPTIMIZER

  1. Thou shalt always use stop losses
  2. Thou shalt risk no more than 2% per trade
  3. Thou shalt wait for confluence score ≥ 4
  4. Thou shalt trade only during high-volatility sessions
  5. Thou shalt not move stop losses away from entry
  6. Thou shalt keep a trading journal
  7. Thou shalt not revenge trade after losses
  8. Thou shalt respect daily loss limits
  9. Thou shalt practice on demo before going live
  10. Thou shalt be patient and disciplined

Pre-Trading Checklist

Before you start your trading session, verify these conditions:

Check Requirement Why It Matters
✓ Economic Calendar No major news in next 2 hours News creates unpredictable volatility
✓ Trading Session London (8-12 GMT) or NY (13-17 GMT) High liquidity = better signal execution
✓ Spread Check Gold <3 pips, Forex <2 pips High spread eats your profits
✓ Account Balance Know exact balance before trading Calculate correct position size
✓ Daily Loss Limit Set stop at 5% account loss Protect from emotional spiral
✓ Mental State Calm, focused, well-rested Emotions destroy trading accounts

Signal Selection Mastery

✓ DO: Filter Signals Carefully

  • Only trade signals with confluence ≥ 4 (beginners: ≥ 5)
  • Confirm signal direction matches higher timeframe trend
  • Wait for Range Filter to align with signal color
  • Check RSI is not in extreme zone (>70 or <30)
  • Verify price isn't at major support/resistance against signal

✗ DON'T: Trade Every Signal

  • Don't trade during Asian session (low volatility for Gold)
  • Don't take signals 30 minutes before major news
  • Don't trade with confluence score < 4
  • Don't ignore higher timeframe direction
  • Don't trade when spread is unusually wide

Optimal Timeframe Selection

Your Availability Recommended Timeframe Trading Style
Can monitor charts all day M5 - M15 Scalping / Day Trading
Check charts every 1-2 hours M30 - H1 Day Trading
Check charts 2-3x per day H4 Swing Trading
Check charts once daily D1 Position Trading

Session-Specific Strategies

🌅 Asian Session (00:00-08:00 GMT)

Not Recommended for XAUUSD

  • Low volatility = fewer quality signals
  • Wider spreads = higher costs
  • If you must trade: Use higher confluence (6+)
  • Better for: JPY pairs, AUD, NZD

🏦 London Session (08:00-12:00 GMT)

Excellent for XAUUSD & EUR Pairs

  • High volatility = many signals
  • Tight spreads during main hours
  • Best time: 08:00-10:00 GMT (London open)
  • Strategy: Scalping with 1:1.5 risk/reward

🗽 New York Session (13:00-17:00 GMT)

Best Overall Session

  • Highest volume of the day
  • London/NY overlap (13:00-15:00) = peak liquidity
  • Perfect for aggressive scalping
  • Watch for 13:30 GMT news releases

Risk Management Excellence

✓ Professional Position Sizing

The Kelly Criterion (Advanced):

Position Size % = (Win Rate × Avg Win) - (Loss Rate × Avg Loss) / Avg Win

Example:

  • Win Rate: 75% | Avg Win: $150 | Avg Loss: $100
  • Position Size = (0.75 × 150) - (0.25 × 100) / 150 = 58%
  • Kelly suggests 58%, but use 25-30% of Kelly (conservative)
  • Final: Risk 14-17% of suggested amount

Common Mistakes to Avoid

Mistake Consequence Solution
Overtrading Increased costs, worse signals Max 5-8 trades per day (M5)
Ignoring Confluence Low win rate, frustration Stick to min score of 4-5
Moving Stop Loss Bigger losses, broken psychology Set & forget - never widen SL
No Trading Journal Can't improve, repeat mistakes Log every single trade
Revenge Trading Emotional decisions, account blow-up Take break after 2 consecutive losses

The Perfect Trade Routine

  1. Pre-Market (30 min before session): Check economic calendar, identify key levels
  2. Signal Appears: Verify confluence ≥ 4, check higher timeframe
  3. Calculate Position Size: Based on stop loss and 1-2% risk
  4. Set Entry Order: At signal candle close price
  5. Immediate Stop Loss: 8-15 pips depending on volatility
  6. Set Take Profit: 1.5-2x stop loss distance
  7. Journal Entry: Record setup details before execution
  8. Monitor (don't micromanage): Check every 15-30 min, not every minute
  9. Scale Out: Close 50% at TP1, move SL to breakeven
  10. Let Winners Run: Trail stop on remaining 50%
  11. Post-Trade Review: Update journal with outcome and lessons

Advanced Tips from Pro Traders

💎 Multi-Timeframe Confirmation

Before entering M5 trade:

  1. Check M15: Trend should align with signal
  2. Check H1: Overall direction confirmation
  3. If all 3 agree → High probability setup
  4. If conflict → Wait or skip the trade

🎯 The Power of Patience

Professional traders wait for A+ setups:

  • Confluence score 6-7/7
  • Clean trend on all timeframes
  • No major resistance ahead
  • High-volatility session

Result: 3-5 trades per day with 80-85% win rate > 20 trades with 60% win rate

✓ The Path to Consistency

"Trading success isn't about finding the perfect indicator - it's about perfect discipline using a good indicator. GAIN OPTIMIZER gives you the edge, but YOU must execute with discipline, patience, and proper risk management. Master these best practices, and consistent profits will follow."

- GAIN OPTIMIZER Team