Gold (XAU/USD) Lot Size Calculator for Blue Guardian

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Instrument Guide

Gold position sizing requires careful attention to its unique characteristics as a precious metal commodity. Unlike forex pairs, gold moves in larger point increments with higher volatility, making precise position sizing critical. The 25-point average daily range means your stop losses need breathing room - typically 15-25 points depending on timeframe and volatility conditions. For stop loss placement, consider that gold often respects psychological levels and technical zones. A 15-point stop might work for scalping, but swing trades often need 20-25 points to avoid premature stops during normal market noise. The $10 pip value makes calculations straightforward but can create large swings in P&L quickly. Worked example: On a $10,000 account risking 1% ($100), with a 20-point stop loss, your position size would be 0.05 lots ($100 ÷ (20 points × $10) = 0.05). This gives you $5 per point movement. For 2% risk ($200) with the same 20-point stop, you'd trade 0.10 lots, making $10 per point. Gold suits Blue Guardian's prop trading rules well. The 3% daily loss limit provides adequate buffer given gold's volatility, while the 10% profit target is achievable with gold's trending nature. However, respect the average daily range - don't expect 40-point moves daily. The instrument's liquidity during London/NY overlap makes it ideal for the firm's risk parameters, but avoid trading during thin Asian hours when spreads widen and false breakouts increase.

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