A Golden Gold Strategy

Feb. 10, 2025

A lot of people love Gold.

For two reasons.

One, they think the pretty little blocks of metal have value that will be recognized in the future.

Two, they love how volatile the Gold chart is.

Gold can get very bullish and very bearish, and trend followers love that dearly. Other types of traders do, too.

Over a year ago, I put together a Futures portfolio that I thought would stand the test of time. It’s the PPP (Performance Page Portfolio) and it’s definitely done well since I put it together.

Initially, though, it only traded the E-Mini S&P 500 contact, the ES.

However, last year I researched a Gold (GC) chart I loved and decided to add it into the PPP. Why? Because Gold theoretically should work well when the stock market doesn’t.

The PPP E-Mini charts are long-only and Gold should supposedly do well if the stock market isn’t.

So, now the portfolio includes GC.

Has it worked out?

With the stock market soaring last year, there’s a chance that Gold didn’t do so well. But there’s also a chance Gold has done well in very volatile 2025.

Let’s take a look.

Here are the rules once again:

Gold (GC) 120-Minute Bollinger Band™ Breakout

• Buy on a break above the Upper Band (100 Length, 2 st dev).
• Sell Short on a break below the Lower Band (1oo Length, 3.1 st dev).
• Target: $3000 per contract
• Stop: $1000 per contract

It’s a very simple system but should work well with stock market strategies.

Here’s the Report via Portfolio Architect since 2024 trading 1 contract each time

Interesting. It’s done well through a bullish 2024 and a volatile 2025. And it’s profitable even though it hasn’t won a single short trade in over a year. That’s the power of trading an instrument that moves.

Here’s the Curve:

Here’s how that same strategy has done since 2016:

It’s hypothetically done quite well since 2016 and the Curve looks excellent.

Furthermore, there are a lot of talking heads who love Gold going forward.

They predict a flight to safety during a wild 2025 and that could mean even more big moves in GC.

We’ll see.

Talk to you soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.