Posted by sbaxman111 on 28th of Feb 2013 at 01:20 pm
Thanks for the kind words Doug:
As of yet I haven't used the Tradestation platforms. Most
of my trading uses the Rydex dynamic index funds (DOW, SPX, RUT,
ADRE) that have an am as well as a pm trading option. But with the
excellent GDX and XLE information from BPT, I also now trade etf's
in my brokerage account.
Today the RSI-2 for GLD/GDX is 21.53/16.86% as I write this and
GDX is below its 200 day line. So the contrarian "reversion to the
trend" short GDX trade taken at the close on the 26th is still
valid. I am still short GDX.
Today is the 3rd consecutive day in a high to low RSI-2 pattern.
If this trade gets to 5 consecutive days lower I would also think
of taking profits and exiting - simply because patterns
historically last 2-5 consecutive days in the vast majority of
cases. Of course there are alwasy exceptions - the longest that a
consecutive day pattern has lasted in my Index data is 13 days.
My target here is a new RSI-2 Long signal below an end of
day 3% RSI-2 level or a 2.5% stop loss from the lowest GDX
value that is achieved during the trade. I think of this as a
"dynamic" stop loss....one that occurs off of the lowest or highest
point within a trade, and NOT the original entry point. Also, if
there are 3 consecutive days below RSI-2 10% without reaching an
end of day value below 3%, that is a one day Long trade that,
statistically, has a very high success ratio in my own data.
GDX is also nearing its previous and recent 37.39 intra-day
low so it is reasonable to be aware of that as support as well.
Best wishes.
Bruce
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Thanks for the kind words
GDX RSI-2
Posted by sbaxman111 on 28th of Feb 2013 at 01:20 pm
Thanks for the kind words Doug:
As of yet I haven't used the Tradestation platforms. Most of my trading uses the Rydex dynamic index funds (DOW, SPX, RUT, ADRE) that have an am as well as a pm trading option. But with the excellent GDX and XLE information from BPT, I also now trade etf's in my brokerage account.
Today the RSI-2 for GLD/GDX is 21.53/16.86% as I write this and GDX is below its 200 day line. So the contrarian "reversion to the trend" short GDX trade taken at the close on the 26th is still valid. I am still short GDX.
Today is the 3rd consecutive day in a high to low RSI-2 pattern. If this trade gets to 5 consecutive days lower I would also think of taking profits and exiting - simply because patterns historically last 2-5 consecutive days in the vast majority of cases. Of course there are alwasy exceptions - the longest that a consecutive day pattern has lasted in my Index data is 13 days.
My target here is a new RSI-2 Long signal below an end of day 3% RSI-2 level or a 2.5% stop loss from the lowest GDX value that is achieved during the trade. I think of this as a "dynamic" stop loss....one that occurs off of the lowest or highest point within a trade, and NOT the original entry point. Also, if there are 3 consecutive days below RSI-2 10% without reaching an end of day value below 3%, that is a one day Long trade that, statistically, has a very high success ratio in my own data.
GDX is also nearing its previous and recent 37.39 intra-day low so it is reasonable to be aware of that as support as well. Best wishes.
Bruce