GDX Mechanical System applied to gold futures?

    Posted by piclez on 18th of May 2010 at 01:33 am

    Hi Matt,

    Do you think is possible to use the same mechanical system you have for GDX but applied to gold futures (/GC) ? Using futures you don't need to wait to buy after hours.

    Thanks for great systems.

    Different volatilities

    Posted by mansilvcas on 18th of May 2010 at 02:22 am

    Systems tend to work in products and times of high volatility. With low volatility, systems like the ones in the premium content section, since they would be very choppy. If you run the ratio ATR/price (as an estimate of volatility) in gold futures you will find that it is half of GDX ratio. Also, GDX ratio is even higher than DGP (2x gold). Therefore if you apply the system to gold futures you may not get the advantages of the system.

    yes I have made it

    Posted by matt on 18th of May 2010 at 02:29 am

    yes I have made it perfectly clear 1000 times with the MA and pivot systems. 

    however the newer proprietary systems will be offered eventually work fine in any market and volatility does not affect them, they trade just fine in low volatile times when the Vix is low

    Hello, no this is only

    Posted by matt on 18th of May 2010 at 01:39 am

    Hello, no this is only for GDX gold stocks, it does not work for gold metal or gold futures, only the ETF for the stocks

    Yea I know that, I

    Posted by piclez on 18th of May 2010 at 01:46 am

    Yea I know that, I was just wondering if your mechanical system settings (ratio etc.) would be possible to apply for gold futures charts, that would be very interesting.

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