Gold is one of the most famous commodities in the world and is a great diversifier for those trading mainly stocks. However, its price has gone nowhere in the past decade, so we decided to test some strategies and try to improve its buy-and-hold returns. Today, we are looking at a gold envelope trading strategy,…
In May 2015, Micheal A. Gayed published a paper called Lumber: Worth Its Weight in Gold Offense and Defense in Active Portfolio Management (free download at SSRN). We used that paper to make a profitable lumber/gold ratio trading strategy for stocks and bonds. Let’s explain the strategy’s reasoning, trading rules, backtest, performance, and results. Related…
Gold has a rich history dating back thousands of years, admired for its beauty and rarity. It has been used for currency, jewelry, and ornamental purposes across civilizations. But more recently, it has been widely used for speculating in the commodities market and as a hedge for inflation (store of value). Let’s look at a…
Throughout history, gold has consistently held its position as the preferred global currency. Now, investors primarily acquire gold as a safeguard against economic instability and, of course, inflation. How does gold perform when inflation is high? Gold has famously been considered a hedge against inflation because of its low correlation with other investment assets. However, how…
Christmas Day is one of the federal holidays in the US. It’s a well-known “fact” that there is normally a Santa Claus rally in stocks, but do we see the same tendencies in the gold price? Is there a Christmas/Santa Claus rally in gold and gold miners? Is there an end-of-year rally? Let’s find out:…
Jay Kaeppel wrote an interesting post about gold stocks: The greatest gold stock system you’ll probably never use. I have a twist to this system which I’ve been trading for weeks. Since Kaeppel has published it I might as well publish it myself. And it’s so simple, and the results are so astonishing I have…
Gold gaps up and down a lot, much more than stock indices. Based on the size of the gap in gold, we develop a gold gap strategy. Previously I have only day traded stocks and traded SPY/ES. Over the last couple of months, I have also had a look at GLD, the ETF that tracks…
