Buildings in most countries around the world require large amounts of energy both for cooling and heating. In fact cooling loads due to solar gains represent about half of global cooling loads for residential as well as non-residential buildings. While solar gains through windows contribute largely to these loads, any method of decreasing these gains through shading should be applied with caution. since a balance is required: decreasing cooling loads by shading may increase heating loads drastically and vice versa. So the overall energy requirements both for heating and cooling should be considered. With this in mind a study was done on the thermal performance of a building by TRNSYS simulation, and a shading model for windows was incorporated in it. The shading devices adopted were external fixed horizontal louvers with different slat lengths and tilts. The study was conducted for four different cities in Italy. The optimization of the shading devices was done with respect to primary energy loads for the whole year, and the optimum design was found to depend on location and weather conditions, It was also found that shading factor varies with time of day and is different for summer and winter. For example, for Milan it was found that 70% of gain is cut off in summer, while only 40% is cut off in winter by using optimum shading, which is desirable.