How do I calculate position size on gold?

Divide your risk in account currency by the stop distance in dollars per ounce multiplied by the contract ounces, normally 100. A 1,000-dollar risk with a 20-dollar stop gives 0.5 lots.

How wide should a gold stop be?

Wide enough to sit beyond the structure that invalidates the trade and to respect current ATR. In a 30-dollar-ATR market, intraday stops under 8 to 10 dollars are usually noise-sized rather than risk-sized.

How much of an account should be exposed to gold at once?

No more than three percent across all XAU positions combined, treating every gold cross as the same underlying exposure rather than as diversification.

GOLD ALGORITHM RISK MANAGEMENT

Gold position sizing follows one formula: risk in account currency divided by the stop distance in dollars per ounce times the 100-ounce contract, giving the lot size.

Exposure limits should cap single-trade risk at one percent and total XAU exposure at three percent, treat all gold crosses as one position, and go flat before tier-one macro releases unless the strategy tested holding through them.

Risk management on gold is arithmetic, and the arithmetic is unforgiving because the contract is large. Every rule here reduces to one habit: decide the stop in dollars per ounce first, and let it dictate everything else.

GoldHunts — the AI-powered gold trading operating system.