Lumber/Gold Ratio Trading Strategy For Stocks And Bonds (Rules, Backtest, Performance)

Lumber/Gold Ratio Trading Strategy For Stocks And Bonds (Rules, Backtest, Performance)

ByOddmund Groette

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…

Lumber Trading Strategy – Example, Rules, Settings, Backtest

ByOddmund Groette

Lumber is a key material for house construction, and lumber futures is the main method of trading this commodity. Used by builders, furniture makers, kitchen cabinet makers, and so on, lumber currently contributes more than $600 billion to the global economy, accounting for approximately 1% of the global GDP. With a huge chunk of this…