What's up everyone, i'm matt and i have another trading strategy in store for you today. This simple gold based strategy profits just over 600 per trade. Systematic strategies such as this one are an excellent source of passive income and help get me one step closer to financial freedom. If you have a similar goal, i hope this video can be of some service to you, depending on when you are watching this.

It may be, or it may not be an ideal time to buy gold in general. It is a good idea to diversify your portfolio. Gold is considered to be a safe haven. Investment investors and traders move their money into gold when other asset classes, such as stocks, are thought to be more risky.

I don't want to get caught up in a boring financial lecture, but a little background information will help frame your outlook on this precious metal when interest rates are high. Stocks, bonds and other investments are considered to be more attractive because the environment is suggestive of growth. On the other hand, lower interest rates suggest the opposite, which makes these investments less appealing. This drives investors towards gold and, as you know, as demand rises, so do the prices now.

This is an incredibly simplified explanation, but it's useful to know the basics of why gold is seen as a store of wealth in questionable financial times. Now that you have a better concept of when you should be looking to buy gold, i'm going to fully explain a gold strategy. I use in my own account, but before i dive into that, please do your own research, i'm not in charge of your financial health. You are, and you shouldn't blindly trust the ramblings of someone on youtube.

Alrighty, then time for the strategy. A lot of trading strategies have really cool, majestic names like heart, dagger or apex predator 9000, which made me think i should name this one, something like king minus, but after thinking about it, i thought it should be more reflective of my skill level. So, let's call this one nickelback. I personally run the nickelback strategy on the gold futures market, but you don't have to.

If you want, you could use gold etfs such as gld or nugt, and get similar results. I should mention, as i was back testing across various assets, the results did not hold for gold miners. If you're able to tweak this strategy in such a way that it works for both gold miners and gold itself, i would love to know my goal is to create a more collaborative community around basic, systematic trading. Now, let's cover the current entry and exit parameters of the nickelback strategy for this strategy to go long on gold, there are a few prerequisites.

The first requirement is that you hit the like button. Obviously i'm kidding, but the support really does help. The first real rule is that it must be a thursday and the current rsi reading has to be above 60.. In addition to that, the rsi value has to be lower than the previous day.

If you need a quick refresher on the rsi indicator, there's a link to an explanation, video on the top of the screen. Now, when these conditions are met, you would buy whatever asset you are using to track hold when the market closes on that thursday. Once you have a long position, there are three triggers that would cause nickelback to exit. The first trigger is a max hold time.

If you are in the position for four days, you would sell when the market opens the next day. This might or might not be profitable, but within those four days the second or third trigger could prompt an earlier exit. The second trigger is when the daily closing price is above your entry price, as in your position, is profitable. If this were to happen, you would exit when the market opens the next day.

The third and final trigger is the least ideal, but it serves as protection. It's your stop loss. The nickelback stop-loss would be placed at a decline of 1.5 times the average range over the past 20 daily bars. That's the whole story.

The strategy buys gold when the market closes on thursday. If the rsi is of the appropriate level, then the position is exited. After four days after a positive day or when the stop loss is hit, whichever comes first now that you know all the rules. Let's take a look at this photograph.

I mean the performance history on the screen. Now are the historical performance results of the nickelback trading system, as you can see, it's traded four times this calendar year. Already over the past two decades, it's generated 51 000. Over 83 trades 82 of those trades were profitable with a profit factor of 3.45.

This means that for every dollar lost over three were gained, the average winning trade was just over a thousand dollars and the average losing trade was around one thousand five hundred. This produces an average trade net profit of six hundred twenty one dollars. Finally, let's take a look at the performance graph, as you can see, it's a pretty decent shape, i'm not the most thrilled about this flat period, but hopefully it continues to trend upward. I am in no way arguing that this is the best gold trading strategy you'll ever come across.

When i first became interested in systematic training, i found it very difficult to find useful resources. I'm sharing some of my insights in hopes that you can do even better feel free to test out any aspect. You want change the holding time introduce a profit target, maybe even filter the trades with a moving average value. Nickelback is a profitable system, but i think it would be awesome if you could make it even better.

I would be happy to learn a thing or two, if you're interested in messing around with this strategy or building your own, i know it can be tough to pick a starting point. I'll show you how i develop nickelback with a program called build alpha. Who knows? Maybe it will be the creative spark you need to make something cool. This is how i built the nickelback trading strategy using build alpha first, i knew i wanted it to be a long strategy and i knew i wanted it to trade gold on the futures market.

Then it was time to figure out my entry parameters. I figured a good starting point would be to know what day of the week it's best to own gold, so i back tested every single day of the week. Here are the results for that small test? It was pretty obvious that day of the week, equals 4, as in thursday, was the best entry criteria. I followed a similar process with that, with other entry signals that interested me, such as simple moving average exponential moving average and a handful of others.

As you know, though, rsi ended up performing very well at the level stated earlier after ensuring that the rsi was above 60 and that the current rsi reading was below the previous days. It was time to figure out the most ideal exits. The best stop, loss value ended up being 1.5 and the best profitable close value ended up being 1.. The max holding time ended up being 4, but i want to explain a little bit of how i got to that.

The delta value right here allows you to augment your back testing, so it will take all of your entry and other exit parameters, and it will test it against a max holding time of four. But now, since you have a delta of one, it would also test it against five, six and seven. So there you get to see what the best performing one would be. Obviously, there's delta values for profitable closes and the stop loss, and i ended up messing around with all of them to see what the most ideal strategy would be.

So after a few button clicks, i actually had a fully functioning trading strategy. Here are the results here? Are all the numeric results and then let's take a quick look at the equity curve, as you could tell, this is the same equity curve we saw on my trading platform earlier, as you can tell build, alpha is extremely powerful if you're interested in learning about other Strategies i have found hit the like button, leave a comment subscribe to my channel. The support is truly appreciated. Thanks for watching, i hope you have a great one, unique new york, unique new york, red leather, yellow leather, red leather.

What yellow going on.