Replies to post #12181 on General Stock Ideas

[gfp927z]

Bigworld, >> 3 X Gold ETF <<



I'd probably test it out using the regular GLD first, since the RSI/CCI approach can backfire if gold continued lower after the RSI buy signal.

That's what happened back in November last year when gold was down and gave an RSI/CCI buy signal (RSI dropped to 30), but then continued to fall sharply for another month. So this was a false buy signal. With this strategy you really need a stop loss in place when going long, say 2% below your buy price.

If gold is zigzagging within a range as it has been recently, you should get reliable RSI buy signals most of the time, and the stop loss would limit any losses to around 2%.

Anyway sounds like a good strategy on paper, though I haven't tried it myself with real money.