We have a nice setup here, you can take an equal dollar weight, which if trading futures , is roughly 2:1 on silver vs gold allocation (long/short). With stocks it's simple, I reccomend a 7% capital allocation to this trade, per side and no stop loss.
This is quite easily a 4R trade once it pans out favorably.
Good luck!
Ivan Labrie.
PS: Contact me if interested on trading signals, or private tuition.
This is quite easily a 4R trade once it pans out favorably.
Good luck!
Ivan Labrie.
PS: Contact me if interested on trading signals, or private tuition.
Komen:
Good progress.
Komen:
Looks good.
Komen:
Let's watch this closely, gold might start to outperform again.
Idea Berkaitan
Pulih
Hi, yes it's late now. You can look to long silver like I suggested in my other posts.
I'm long silver against gold and the euro, and long yen against the euro (and dollar).
I'm long silver against gold and the euro, and long yen against the euro (and dollar).
Balas
This is a pair trade*. You long silver and short gold simultaneously, and calculate the position size based on volatility or matching dollar value per side.
Over time, the difference in performance, from silver over gold will produce a profit. The result of this trade, is the ratio chart you see above.
The trade won't work if you use a stop loss, and is a longer term trade.
Hope that clarifies it.
Cheers,
Ivan.
*For more on pair trading and gold/silver ratio trading: http://www.etf.com/sections/features-and-news/2308-how-to-trade-the-goldsilver-spread?nopaging=1
Over time, the difference in performance, from silver over gold will produce a profit. The result of this trade, is the ratio chart you see above.
The trade won't work if you use a stop loss, and is a longer term trade.
Hope that clarifies it.
Cheers,
Ivan.
*For more on pair trading and gold/silver ratio trading: http://www.etf.com/sections/features-and-news/2308-how-to-trade-the-goldsilver-spread?nopaging=1
Balas