gold systems


Paper money eventually returns to its intrinsic value – zero Voltaire, 1729

intermarket gold systems

Here you can see the performance of the revised Gold systems in Chapter 11 of my book Intermarket Trading Strategies from 18/11/2004 until 25/2/2019.
You can compare the performance with the Buy & Hold performance at the bottom.

For the test simulations I used the GLD ETF which first started in the NYSE on 18/11/04. For the single divergence systems I used either the Philadelphia Gold & Silver Mining Index (XAU) or the Dollar Index (DXY), for the double divergence tests I used both and for the multiple regression I added the SLV ETF. The Relative strength system was the only one that didn’t use a divergence method but the performance was not bad compared with the other divergence systems. In fact it ranked fifth on a net profit basis.

I used the Amibroker platform for the simulations. Of course an exact translation to Easy language or Metastock formula language is not possible but the performance of the corresponding Tradestation or Metastock systems was similar. The trading amount was set to $100,000 per trade , the initial equity to $101,000 and the commission $2 per trade.

If you wish to replicate the tests please keep in mind that for the test to start producing any signals the indicators used in each should be first calculated and this requires a number of bars to be loaded first.
As you might have noticed the systems did not produce a lot of trades. If you are an active trader you could insert all systems in the GLD chart and trade if you see two or more confirming signals in the same direction. If you use Metastock then you can attach the expert advisor (included in the Metastock Intermarket package) which includes all gold system signals (See the chart below)

intermarket gold systems flow chart