Volatility Compression Break waits for gold ranges to contract to an unusual degree, then trades the first expansion out of that compression in whichever direction it comes.
What it does: Measures range contraction against a recent baseline. Stays flat while compression persists — most of the time it does nothing. Trades the first genuine expansion, either way.
When it works: Quiet pre-event coils that resolve sharply. Late Asian hours into the London open. After multi-day consolidations near a major level.
When it struggles: Compression that simply continues for days. False expansions that snap straight back into the coil. Thin holiday sessions where range readings mislead.
What the trader controls: Risk per trade, as a percentage of the account or a cash amount. Daily loss limit — once hit, no new entries for the rest of the London trading day. Maximum open positions on gold at any one time. Sessions it may trade, and whether high-impact news blocks new entries. You can switch the model off at any time, and reducing or closing risk is never blocked.
The method behind Volatility Compression Break is documented in full under XAU session breakout at https://goldhunts.com/gold-strategies/xau-session-breakout. GoldHunts publishes win rate and sample size for closed XAUUSD trades only — never profit or loss figures, and never a projection.
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