Trading Edge 63
Instrument/asset
Gold (GLD)
Trading rules
The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it):
- Today is an outside day; and
- The IBS is lower than 0.4; and
- The 5-day RSI is above 50.
The trading edge behaves slightly differently depending on the close in relation to the 5-day RSI. Gold behaves differently compared to stocks as regards overbought and oversold.
Results
Trading performance if exit after N-days (100 000 and compounding since inception):
The results are promising, and we have a decent amount of trades.
If we exit after 5 days we get the following equity curve:
