How much should I risk on gold mean reversion trades?

Around 0.5% of equity — half of a with-trend setup — because the outcome distribution has a much fatter left tail, with a hard stop for the day after two losses.

What stop should I use for XAU mean reversion?

The wider of: beyond the move extreme plus a $1 spread buffer, or 1.5 times the 15-minute 14-period ATR. Size down to accommodate the stop rather than tightening the stop to accommodate size.

Should mean reversion trades use a time stop?

Yes. If price has made no progress back towards the anchor within about sixty minutes, the expected flow has not arrived and closing early for a partial loss bounds the tail risk of a misread regime.

Gold Mean Reversion Risk Management Rules

Gold mean reversion should be allocated half the risk of a with-trend setup — around 0.5% of equity per trade — because its outcome distribution has a fat left tail concentrated on trend days.

Stops are the wider of the move extreme plus a buffer or 1.5 times the 15-minute ATR, with targets at half the distance to the anchor and then the anchor itself.

A sixty-minute time stop, a two-loss daily cap, a written post-mortem for any loss above 1.2R and a rule against running reversion and breakout entries in the same session keep the tail bounded.