Gold Trading Bot (XAUUSD)

An automated forex trading bot for gold (XAUUSD) using MetaTrader 5 with technical analysis, risk management, and position monitoring.

Disclaimer

Trading forex and CFDs involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. This bot is provided for educational purposes only. Use at your own risk.

Features

Technical Analysis

• Multiple EMA crossovers (9, 21, 50, 100)
• MACD histogram momentum tracking
• RSI with overbought/oversold detection
• Bollinger Bands positioning
• ADX trend strength measurement
• Volume analysis and confirmation
• Candle pattern recognition (Hammer, Shooting Star)

Risk Management

• Dynamic position sizing based on account equity
• ATR-based stop loss with higher timeframe blending
• Small account protection (caps risk when minimum lot would over-leverage)
• Adaptive take-profit levels with signal strength scaling
• TP compression (35-55%) for realistic profit targets
• Maximum daily trade limits
• Profit target and drawdown protection
• Spread filtering to avoid expensive trades
• Hard 5% risk cap per trade for small accounts

Entry and Exit Logic

• Multi-factor scoring system (minimum 4.5/12 required)
• Anti-late-entry filters prevent chasing moves
• BB position filtering (no extremes)
• Momentum building requirement
• Trailing stop system based on progress and peak tracking
• Emergency exit conditions for rapid losses
• Time-decay exits for stale positions
• Win/loss cooldown periods

Session Management

• Restricted to London and NY sessions only
• Trading Hours: 07:00-19:00 UK time (Monday-Friday)
• Blocks Asian session (overnight) trading completely
• Focuses on high-liquidity periods for better trade quality
• Tighter spreads during active sessions
• Better trend consistency in major market hours

Monitoring

• Live position tracking with P&L percentage
• Market session awareness (London/NY)
• Comprehensive status dashboard
• Signal strength diagnostics
• Rejection reason logging
• Real-time spread monitoring

Auto-Update System (NEW in v2.2.0)

• Automatic update checking on every launch
• One-click updates with user confirmation
• Automatic backups before updating
• Safe rollback support
• No manual downloading required

Requirements

• Python 3.8 or higher
• MetaTrader 5 platform
• Active MT5 trading account (demo or live)
• Algo Trading enabled in MT5 with DLL imports allowed

Installation

Windows - Quick Start

1. Download the latest release from the Releases page
2. Extract the ZIP file to your desired location
3. Install MetaTrader 5 from MetaQuotes website
4. Log in to your trading account and ensure XAUUSD is visible
5. Enable Algo Trading in MT5 (see section below)
6. Double-click gold_bot_start.bat

The batch file will automatically:

• Check for updates (and ask if you want to install them)
• Install Python dependencies
• Launch the bot

Linux/Mac

# Download and extract the latest release
wget https://github.com/Morticuss/Gold-trading-bot/archive/refs/tags/v2.2.0.zip
unzip v2.2.0.zip
cd gold-trading-bot-2.2.0

# Install dependencies
pip3 install -r requirements.txt

# Run the bot
python3 gold_bot.py

Manual Installation

git clone https://github.com/Morticuss/Gold-trading-bot.git
cd gold-trading-bot
pip install -r requirements.txt
python gold_bot.py

MetaTrader 5 Setup

IMPORTANT: You must enable Algo Trading and DLL imports for the bot to work.

Step 1: Enable Algo Trading

1. Open MetaTrader 5
2. Look at the top toolbar
3. Click the "Algo Trading" button
4. The button should light up green when enabled

Step 2: Allow DLL Imports

1. In MetaTrader 5, press Ctrl+O (or go to Tools → Options)
2. Click on the "Expert Advisors" tab
3. Check the following boxes:
   • ✅ Allow automated trading
   • ✅ Allow DLL imports
4. Click OK

Step 3: Verify XAUUSD Symbol

1. Press Ctrl+U (or View → Market Watch)
2. Right-click in Market Watch → "Show All"
3. Search for XAUUSD
4. If found, it should appear in your Market Watch list
5. If not found, contact your broker (not all brokers offer XAUUSD)

Troubleshooting MT5 Setup

"Algo Trading" button is greyed out:

• Make sure you're logged into an account
• Check that your broker allows automated trading
• Restart MT5 and try again

Bot says "MT5 initialization failed":

• Ensure MT5 is running and logged in
• Check that XAUUSD symbol is in Market Watch
• Verify "Allow DLL imports" is enabled
• Try restarting both MT5 and the bot

No trades executing:

• Check the "Algo Trading" button is green/enabled
• Verify trading hours (07:00-19:00 UK time)
• Check the bot's console for rejection reasons
• Ensure spreads are within limits

Configuration

Key parameters in gold_bot.py:

# Risk Management
self.base_risk_pct = 0.25                    # Base risk per trade
self.max_risk_pct = 0.6                      # Maximum risk for strong signals
self.min_lot = 0.01                          # Minimum lot size
self.max_lot = 0.5                           # Maximum lot size
self.max_single_trade_risk_pct_cap = 5.0     # Hard cap per trade (protects small accounts)

# Spread and Execution
self.max_spread_points = 25                  # Skip if spread exceeds this (in points)
self.max_price_deviation_points = 20         # Slippage tolerance for orders

# Daily Limits
self.daily_profit_target = 20.0              # Daily profit target (%)
self.max_drawdown = 12.0                     # Maximum daily loss (%)
self.max_daily_trades = 25                   # Maximum trades per day

# Cooldowns
self.win_cooldown = 20                       # Seconds after winning trade
self.loss_cooldown = 45                      # Seconds after losing trade

# Position Management
self.tp_compression_min = 0.35               # Minimum TP compression
self.tp_compression_max = 0.55               # Maximum TP compression
self.time_decay_minutes = 10                 # Minutes before time-decay check
self.min_progress_after_decay = 0.15         # Minimum progress required to hold

Trading Strategy

Signal Scoring System

The bot uses a multi-factor scoring system where trades require a minimum score of 4.5 out of 12 possible points.

Bullish Signals:

• Strong uptrend (EMA 9 > 21 > 50 > 100): +2.5 points
• Price above EMA9 with strong trend: +1.5 points
• MACD histogram rising strongly: +2.0 points
• RSI oversold with positive momentum: +2.0 points
• Volume spike with bullish candle: +1.5 points
• Price near lower Bollinger Band: +1.5 points
• Strong bullish candle: +1.5 points
• Hammer pattern near BB lower: +2.0 points

Bearish Signals:

• Strong downtrend (EMA 9 < 21 < 50 < 100): +2.5 points
• Price below EMA9 with strong trend: +1.5 points
• MACD histogram falling strongly: +2.0 points
• RSI overbought with negative momentum: +2.0 points
• Volume spike with bearish candle: +1.5 points
• Price near upper Bollinger Band: +1.5 points
• Strong bearish candle: +1.5 points
• Shooting star near BB upper: +2.0 points

Entry Filters

Trades are rejected if:

• Score below 4.5 minimum threshold
• Opposing signal too strong (need 1.2x advantage)
• Extreme RSI levels (>75 or <25)
• Price moved >0.15% in last 5 bars (anti-late-entry)
• BB position too extreme (>80% for buys, <20% for sells)
• Momentum weakening
• Spread exceeds maximum allowed
• ADX <18 with choppy conditions
• Minimum lot would exceed risk cap
• Outside trading hours (before 07:00 or after 19:00 UK time)

Position Management

Stop Loss:

• Dynamic ATR-based calculation
• Blends M5 ATR with higher timeframe ATR (M15)
• Scales with signal strength: 0.8-1.2x ATR

Take Profit:

• Ratio of 1.8-2.5x stop loss distance
• Compressed by 35-55% for realism
• Scales with signal strength and trend

Trailing System (Point-Based for XAUUSD):

• 800+ points profit, retrace 150 points: close
• 500+ points profit, retrace 120 points: close
• 300+ points profit, retrace 100 points: close
• 200+ points profit, retrace 80 points: close

Note: For XAUUSD, 1 point = 0.01 price movement (e.g., 150 points = $1.50)

Emergency Exits:

• P&L drops below -0.6% with rapid price movement
• Profit reverses 25% after reaching 0.4% gain
• Time-decay after 10 minutes if progress stalls and profit ≥150 points

Trading Hours

Active Trading Window:

• Monday-Friday: 07:00-19:00 UK time only
• London Open: 07:00-10:00
• London Mid: 10:00-13:00
• NY Open: 13:00-16:00
• NY Mid: 16:00-19:00

Blocked Sessions:

• Asian Session: 19:00-07:00 UK time (no overnight trading)
• Weekends: Saturday-Sunday (closed)

Why London/NY Only?

• Higher liquidity = tighter spreads
• Better price action and trends
• Reduced slippage
• More reliable signals
• Avoids choppy Asian session overnight

The bot will display "WAITING FOR MARKET (CLOSED)" outside these hours.

Auto-Update System

The bot automatically checks for updates on every launch.

How it works:

1. Launch gold_bot_start.bat
2. Updater checks GitHub for new releases
3. If update available:
   • Shows version and release notes
   • Asks: Download and install update? (y/n):
4. Type y to update, n to skip
5. Bot launches normally

Features:

• ✅ Automatic version checking
• ✅ One-click updates
• ✅ Automatic backups to backup_X.X.X/ folders
• ✅ Preserves your settings and data
• ✅ Safe rollback if needed

Manual Update (Alternative): If you prefer manual updates, simply download the latest release and replace your files.

State Management

The bot maintains state in memory only while running. Daily statistics are calculated from MT5 history and reset at 08:00 UK time each trading day.

Troubleshooting

Python Not Found

• Install Python from python.org
• During installation, check "Add Python to PATH"
• Restart your computer

MT5 Initialization Failed

• Ensure MT5 is running and logged in
• Enable "Algo Trading" button (top toolbar)
• Enable "Allow DLL imports" in Options (Ctrl+O → Expert Advisors)
• Restart MT5 and try again
• Check account credentials

Symbol XAUUSD Not Found

• Open MT5 Market Watch (Ctrl+U)
• Right-click → "Show All"
• Search for XAUUSD and add it
• Verify symbol name matches your broker
• Contact broker if XAUUSD not available

No Trading Permissions

• MT5: Tools → Options → Expert Advisors
• Enable "Allow automated trading"
• Enable "Allow DLL imports"
• Click the "Algo Trading" button on toolbar
• Verify algo trading is allowed on your account

Bot Not Trading During Day

• Check you're within 07:00-19:00 UK time
• Verify MT5 is showing correct time
• Check signal diagnostics for rejection reasons
• Ensure spreads are within limits
• Verify "Algo Trading" button is enabled (green)

Dependencies Won't Install

• Run Command Prompt as Administrator
• Navigate to bot folder
• Run: pip install -r requirements.txt

Bot Closes Immediately

• Check MT5 is running and logged in
• Verify Python version is 3.8+
• Check console for error messages
• Ensure "Algo Trading" is enabled

Update Failed

• Check internet connection
• Verify GitHub is accessible
• Check backup_X.X.X/ folder for previous version
• Manually download latest release if needed

Performance Monitoring

The bot displays:

• Real-time account equity and balance
• Market status and trading session
• Active position details with P&L percentage
• Progress toward take-profit with peak tracking
• Cooldown timers and daily trade count
• Signal diagnostics and rejection reasons
• Daily profit/loss statistics
• Current spread in points
• Trading hours status (ACTIVE/CLOSED)

First-Time Setup Checklist

• Python 3.8+ installed
• MetaTrader 5 installed and running
• MT5 account logged in (demo recommended for testing)
• XAUUSD visible in Market Watch
• "Algo Trading" button enabled (green)
• "Allow DLL imports" enabled in Options
• Bot extracted and dependencies installed
• Current time is between 07:00-19:00 UK time
• Bot shows "SCANNING FOR SIGNALS" status

Version History

• v2.2.0 (2026-01-XX): Added auto-update system
• v2.0.1 (2026-01-24): Added London/NY session restriction (07:00-19:00 UK time)
• v2.0.0 (2026-01-24): Major risk management overhaul, signal quality enhancement
• v1.0.0 (2026-01-21): Initial release

Contributing

Contributions are welcome. Please:

1. Fork the repository
2. Create a feature branch
3. Commit your changes
4. Push to the branch
5. Open a Pull Request

License

This project is licensed under the MIT License. See the LICENSE file for details.

Risk Warning

Trading carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.

The possibility exists that you could sustain a loss in excess of your deposited funds. Therefore, you should not speculate with capital that you cannot afford to lose.

Support

For issues and questions:

• Open an issue on GitHub Issues
• Check existing issues for solutions
• Review the troubleshooting section

Acknowledgments

• MetaTrader 5 API by MetaQuotes
• Technical analysis libraries: pandas, numpy
• Trading community feedback

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Remember: Past performance is not indicative of future results. Trade responsibly.