ETF Play 3xleveraged
How To Make A Double Trading 3xleveraged
Gold Miner ETF In A Week
September 04, 2015
In Constant Search for Chart Patterns used in Program Trading
Gold miner stocks were in a free fall last week. Both GDX and GDXJ was down big last week.
GDX lost 6.03% and closed at 13.39.
GDXJ fell 5.03% and closed at 19.45.
It is not surprising to see 3xbear gold miner ETFs - DUST and JDST made a big run last week, gained 18.50% and 15.54% respectively.
But using the buy/sell signals generated from our pattern recognition system, trading DUST and JDST can give us over 100% return in a week shown in the tables below:
gain amt - the profit if $50,000 capital is used for each trade and no compounding.
3xbear gold miner ETF - JNUG and NUGT were both down big for the week. But using the same pattern recognition system, trading them can still give us near 100% return. See table below for buy/sell signals generated for JNUG:
Where Gold Miners Will Go Next ?
Gold is short term oversold and should bounce back this week. GDX is going to find strong support on its year low level.
GDX - Its last Friday's low was 13.06. Previous two year lows were 13.01 on August 5 and 12.96 on August 26.
Will we see a break-down on gold miners this week?
The answer is - I don't know.
No matter what happens next, I will continue using the current pattern to trade 3xleveraged gold miner ETF as long as the current pattern is still valid.
From trading prospective, I need a system which can give us buy/sell signals using which can result in consistent trading profit.
One thing is certain that the chart pattern keeps changing.
In my previous article, I showed how trading JNUG can make a double in three weeks following the pattern I detected then:
I also predicted in that article that
"The chart showed an ascending triangle bullish pattern. Once it breaks out $22.00 strong resistance, we may see $29-$30 in another three weeks and we may make another double in the following three weeks."
JNUG did make a following three weeks run and topped at $27.60 on May 14, short of my 29-30 target.
That is, even the JNUG already gained 100% up to April 22, the pattern was still valid until three weeks later. Trading JNUG using the same pattern could make another double.
That pattern is no longer valid now.
How to detect the chart patterns:
Using a chart pattern database, which stores hundreds of patterns.
The software system can do a pattern match to see which one fits the best.
Please be noted, the above tables just list the signals generated by using a chart pattern recognition system last week, not the real trading result.