VWAP Reversion uses volume-weighted session fair value as its reference. When gold trades a long way from it without a driver, the model trades the move back, resetting its reference at each session start.
What it does: Tracks session volume-weighted average price as the reference level. Requires a measured distance from it before considering an entry. Targets the reference, not an extension beyond it.
When it works: Two-sided sessions where gold rotates around fair value. Mid-session lulls between London and New York drivers. Days without scheduled high-impact US data.
When it struggles: Trend days where fair value drags along behind price all session. Session opens, before enough volume exists to mean anything. Illiquid holiday sessions where the reference is unstable.
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 VWAP Reversion is documented in full under Gold mean reversion at https://goldhunts.com/gold-strategies/gold-mean-reversion. GoldHunts publishes win rate and sample size for closed XAUUSD trades only — never profit or loss figures, and never a projection.
GoldHunts — the AI-powered gold trading operating system.