In the case of forex price movements No Nonsense Forex announces that the big banks and financial institutions are the individuals who are creating the price fluctuations and there is in infinite supply of money.
For metals, the prices are based off the concept of supply and demand. This is because the metals can become scarce or abundant depending on the sources or economic activities that use these metals in their products.
NNFX trades precious metals against the USD.
The four spot metals are:
XAU/USD = GOLD
XAG/USD = SILVER
XPT/USD = PLATINUM
XPD = PALLADIUM
- Confirmation Indicator (keep the same as forex BUT better if you change it)
- Volume Indicator ( Same as forex )
- 2nd Confirmation Indicator (keep the same as forex BUT better if you change it)
- Exit Indicator (keep the same as forex BUT better if you change it)
Volume is not necessary when trading with the trend BUT volume indicator is used when entering reversals.
If a reversal trade is signaled and there is no volume. No entry.
The only news you need to avoid for metals is the USD Interest Rate Decisions. Stay out of US election times. That’s it.
The Stop Loss
The stop loss on metals is a little different than forex due to the smoother price action unlike forex which has large volatility.
Instead of a 1.5 ATR stop use a slightly smaller stop loss of 1.25ATR.
Although, at the time of this writing (October 4th, 2019) No Nonsense Forex recommends that keeping the stop loss at 1.5ATR will benefit you at the moment due to some current metal volatility.
XAG/USD = SILVER
The ATR is different for silver. The reading of the ATR is different for gold and silver.
Gold: 19.789 = (1978 pips) ignore last digit it is a pipet.
Silver : .38218 = (3821 pips) ignore last digit it is a pipet.
If you have a short/long signal on gold and a short/long signal silver at the same time you are going to split your risk. 1% each.
If you have a signal on gold and a signal that looks to trigger soon on silver – choose gold over silver because it is smoother.
If the situation reverses and the opposite happens. You receive a signal on silver first but you think that a gold signal is not far behind, enter the silver at half risk.
News – reiterated in the Platinum video – be careful of USD interest rate news otherwise you can trade each metal independently and you do not have to worry about putting your risk between them.
This rare earth can be traded completely on its own with no regard for other metals. It does not have to avoided when USD interest rates are announced. You do not have to balance the risk against other metals. A full 2% risk can be used.