“Set and forget” is a trading method in which we open trades and let them run in profit for a longer time period.
This will also help us overcome psychological factors and sometimes also gives very high risk-reward trades.
In this post, I will apply the “set and forget” trading method to Gold (XAU/USD) trading. Because in gold trading, this method provides very fruitful results with small risk, even small account traders can follow this trading strategy. So, read this post completely so you don’t miss any important step.
The Price Target is Important
According to my experience, the most important and first thing to determine in trading is the price target level. You must first predict where the price is heading or which level the price will break. This simple prediction can help you determine the trend along with the price target level. When you determine the price target level, it becomes easy to trade only in that direction.
The stop-loss and entry-level are always difficult because stop-losses can create many psychological difficulties for traders.
Predict the Price Target
In this strategy, we will predict the price target using supply/demand, fair value gap, or flag limit zones on the higher timeframes. Using a higher timeframe is important because it can also help to catch bigger price trends.
For example, in the image below, I have shown a flag limit zone that has been touched many times. As we know, after many touches, the price will finally break the flag limit zone. So here, I predicted that the price would go bullish and break that flag limit. My target prediction here is the flag limit break.
This is very easy; we will not have to look for many complex price patterns. Just use simple analysis to predict the price. Complex trade setups also increase the chances of inaccuracy in price prediction, so always use simple but logical things, such as flag limits and supply/demand, to predict the future price target.
Look for Trades in the Direction of the Price Target
As we already know that the price value will increase until it breaks the flag limit, we will only trade in the predicted direction (bullish direction). So, we will find opportunities to open buy trades. I mean, we will look for small trade setups such as inside bar breakouts, a price bounce from the Fibonacci golden zone, or simple chart patterns such as a flag pattern.
So, whenever we see a bullish inside bar breakout or a bullish flag pattern, we will open a buy trade with a small lot size. For example, you can use just a 0.02 lot size in gold for small account holders.
If the trade goes into profit, keep holding it until the price reaches the target. Then, close 0.01 and keep the rest of the trade running longer. For example, if you are trading on the 5-minute timeframe, keep it running for two to three days. Remember to move to break-even after the first price target. This strategy will surely give you very high risk-reward trades, keeping your trading account green, but you must show patience in holding the profitable trade.
I have also shown some examples below so you can understand the trading strategy easily.
The Bottom Line
Simplicity and patience are best in trading. Looking for complex trade setups will not make you a winning trader because profitable trading is deeply hidden in trading psychology and risk management. So, if your trading psychology or risk management is not being managed by you, it does not matter how advanced a trading method you are following, because you will still lose in trading.
The most profitable thing is to first manage risk and overcome psychological factors. This can be done easily by following simple and logical trade setups, like I have shown you in this post.
I hope you will surely follow this trading method. It is also not necessary that you use the flag limit or supply/demand; you can also use your own methods. But the most important thing is to keep everything simple and organized and also follow proper risk management, such as using a small lot size and getting high risk-reward trades. So, the risk is small and the reward is large.
Also, manage your trading psychology, such as holding a profitable trade for a long time without changing your decisions.
I hope you will like this trading strategy. If you have any questions related to this method, please comment below.
