Disliked{quote} Hi Clock... I sent you an email with request for weekly gold signals to your address: [email protected]. Did you receive it? A question in respect to your chart: When I place a S limit order @ 1320, my stop would be 1325 and take profit 1315. When YOU sell 1320, how do you place the stop @ 1315???? And where is your take profit target????? And why an order like: 1320.69, 1321.18, 1321.59???? Why not simply 3 times 1321. From your Golden season website (http://www.goldguru.in/blog/), I can not distill this strategy. Plse explain....Ignored
I think what CT does is "hedging" (for a lack of a better term). He is long biased for the long term (seasonal), but takes shorts (when he sees short opportunities). I think that is the logic behind his method; which can actually be very effective if you trade small positions and scatter them over a spectrum...hoping to take profit from a deviation from the mean. I think this is a decent approach to trading "commodities" in general as they are more or less ranging; (plus also his seasonal approach is in fact the same thing -- spread over a year).
This is why I think he more or often than not neglects stop losses as they become inconsequential as price is atleast 70 to 80% probable to come and retest the same areas. This strategy is very effective if you have a very large account and you trade very small lots; as it gives one the ability to sit on losses until they take a swing again.
I would be very interested to see/know the ROI on such an approach over a prolonged period of time...
And to answer this question: "When YOU sell 1320, how do you place the stop @ 1315????"; isn't that a trailing stop loss; (basically he is willing to locking a profit at that point; instead of the price right now --- I guess the trade off he is making is the fact that if he sells now; then he would miss out if the price continues to move lower, but if it moves higher then his "longs" will become more profitable...
I hope that makes sense; more so I hope I am not mistaken about his approach?
because truth be told it is still in range for a bounce back and new oportunity to short
