GLD – buy @ $84.00. GLD has dropped sharply over the last several days. I am looking to buy based on the following criteria: 1)It has closed below its 10-day moving average for at least 10 days. 2) It is above its 200-day moving average. 3) It made its lowest low of the recent selloff today. 4) It closed stretched further below its 10-day moving average than it has on any day of the recent selloff.
Buying the next day at the setup day’s closing price and selling when it closed above the 5-period moving average would have produced the following results over the last 10 years in the list of 109 heavily traded ETF’s I track (most of which have not been around for 10 years):
The setup has only occurred once before in GLD – on June 14th, 2006. It was sold 2 days later for a 3.15% gain.
The trade idea was entered at the open on 5/2/08 @ $83.96. It was closed at the next session’s close (5/5/08) for $86.27 – a 2.75% gain.
Due to feedback from subscribers, I have now begun providing the code for any such system trades to the subscriber base. Tradestation users may import it right into their software for further testing and design.
The 2nd recently added subscriber desired feature is intraday updates. When notable action is occurring in open trades, I may send out Intraday Updates to subscribers alerting them.
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