Gold Trader - Trade 19

Gold Trader: Trade 19 closed on Thursday 25th January at $1,348 for a gain of +7.2%. Gold Trader ended 2017 +12.0% and has returned +3.5% in 2018 YTD.

Gold PowerTrader Trade 19 closed on Thursday 25th January at $1,348 for a gain of +15.0%. Gold PowerTrader ended 2017 +22.3% and has returned +6.5% in 2018 YTD.

I entered Trade 19, a long position in gold, on 18th December at $1,258, four days into a new Investor Cycle. I am expecting big things from gold this year and have not been disappointed so far. DC1 has been quite powerful. The USD is in big trouble and that has only just started to have a positive impact on precious metals. I closed the position yesterday on Day 29. Gold reacted yesterday to comments made by Trump that the "USD will get stronger and stronger" under his presidency. I expect the opposite will happen. 

 
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I expect the drop into the daily cycle low for gold as DC1 ends and DC2 begins will be quite mild and will perhaps only last a few days. I expect DC2 will be equally powerful and the trick will be to get on board for the next run, potentially to $1,500 next month.

 I have made some refinements to my Gold Trader strategy, which I think will improve performance this year. I have widened the stop loss from 2% to 3% and will also show more patience on trade entries; a study of past performance has shown that on average, I have entered trades 7 days too early. The combination of these adjustments should improve the win rate on trades to 75% (the win rate is typically 40%-55% across the hedge fund community) and increase the average win percentage closer to 5%+ per trade. We are off to a great start. 

After 19 trades, Gold Trader has returned +20.3% and Gold PowerTrader has returned +24.4%.

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For more information on my gold market analysis, please get in touch. You can reach me at brian@secureinvestments.ie or at 086 821 5911.