Weekend price gaps and daily rollover widening are the two most common causes of unexpected slippage for retail gold traders. Establishing disciplined position-closing protocols eliminates uncalculated risk.
1. The Weekend Gap Protocol
If holding swing positions over the weekend, position size must be reduced by 50% to ensure that a 100-pip adverse gap does not exceed your maximum allowable account risk limit. Professional traders prefer closing day trades on Friday afternoon to start fresh on Monday.