I have been following the short-term (daily) and medium-term (investor) cycles of the gold market for over 10 years and have identified specific patterns, a rhythm, to the market that repeats with regularity as the daily and investor cycles ebb and flow. The consistency of these patterns peaked my interest and I started recording more detailed analyses of the cycles starting back in 2010. Today, I have data on over 60 daily cycles and those strong, repeatable patterns are clearly visible. Gold Trader and Gold PowerTrader have emerged from many hours of data analysis to test the trading signals my research has uncovered. Gold PowerTrader is a geared version of the Gold Trader investment strategy. Both strategies have the potential to deliver very strong returns for investors over time, in a risk controlled way. I have summarised my analysis in the table below.

Gold typically moves in daily cycles (DC's) of 20-28 trading days per cycle. There are generally 4 or 5 DC's in each medium-term "Investor" cycle (IC). In bull markets, DC1, DC2 and DC3 are strong, followed by selling in DC4 as sentiment is re-set and price returns to the longer-term upward sloping moving average. In bear markets, DC1 and possibly DC2 are positive followed by heavy selling in DC3 and DC4 as the major trend is down and the bear market pulls the gold price lower.

Gold Trader and Gold PowerTrader focus on capturing the strongest and weakest parts of gold's daily cycles, buying daily cycle lows, selling daily cycle highs and holding for 10-15 trading days, depending on the cycle count. I aim to identify the daily cycle low or high each time before I enter a trade. I can therefore effectively manage my risk. The strategy aims to capture +5% to 6% profit per trade while risking just 1.5% each time and has a win rate in excess of 70%.

Performance

Gold Trader has returned +1.2% and Gold PowerTrader has returned +6.4% after five trades. Trade 6 is open with a return target of 6% over a maximum of 15 trading days.

Stops were triggered on trades 1 and 2 and both positions were closed. Trade 3 returned +0.7% after its 10 day holding period expired. Trade 4 achieved its target return +5.3% and was closed. The stop was triggered on trade 5 and this position was closed. The stop was triggered on trade 6 for Gold PowerTrader intra-day but not for Gold Trader, which remains open and is currently profitable.

For more information on this exciting new strategy for Secure Investments, or to open an account, please contact Brian Delaney in the first instance at 086 821 5911 or brian@secureinvestments.ie.