Jump to content
Sign in to follow this  

Platinum vs Gold

Recommended Posts

chartplatinum.png

 

The Platinum price has fallen 12 of the last 13 days

Gold has also fallen off the proverbial cliff since tracing out a weekly reversal (see my previous post re: Gold)

While both seem very oversold now I feel a better trade exists looking at the Gold/Platinum ratio.

 

The ratio between Gold and Platinum during this recent period has fallen sharply.

It is currently just above .81

That is it takes just over .81 of an ounce of Gold to Buy an ounce of Platinum. 

I think this is overdone and believe Platinum will close this gap from here.

As such I am Buying Platinum and selling Gold expecting this ratio will climb.

I am putting a stop at .78

 

What do you think guys?

 

Cheers,

 

JB.

Share this post


Link to post

Interesting.  I wonder what the average ratio is, if you know?  Like is it normally 55 and now at 81? 

Share this post


Link to post

In recent times the average as been closer to 1.

Fridays action suggests I am a bit early in this trade.

Hopefully it turns around before I get stopped out.

Down to .8 now

.78 is my stop on a closing basis.

 

Cheers,

 

JB.

Share this post


Link to post

Hi 

 

Hopefully you avoided that stop - I see gold has put in a decent rally over my session, which might be a positive. 

I can see the thinking behind your strategy, especially with gold getting a bit of a hiding recently - hope it goes well.

Share this post


Link to post

Thanks Zero.

I havent been too close to the stop yet.

I gave it a pretty wide berth.

Some catching up to do though.

 

I thought Platinum would be up last night but it was Gold that fell back.

 

Cheers,

 

JB.

Share this post


Link to post

I entered the trade with Platinum at .82 of Gold.

It is now at .80

While I am unhappy to be behind in the trade I will let it run.

My stop is .78 on a closing basis.

 

Cheers,

 

JB.

Share this post


Link to post

The ratio is currently .796

It has been as low as .784

My stop is .78 on a closing basis.

I still believe this trade can work out but it's obviously a worry how fast it has fallen.

 

Cheers,

 

JB.

Share this post


Link to post

Hi jb,

 

Don't let me corrupt your successful strategies/MM - but does this trade need a stop?  I can imagine that, given time, it should come good.  Easier for me to say as I guess you've done all the hard work for us, and if we get in now we'd have more room to play. 

 

I can imagine, as a sort of hedge trade, they'd stay in their current correlation until one breaks out (as you've predicted) and then things will change quickly as the correlation changes.  Hang in there anyway... 

Share this post


Link to post

The trade has certainly turned for the better in the last few days.

 

HOWEVER - Gold and Platinum both reversed to the upside on a weekly basis last week after the move we saw on friday.

 

As such I am keeping the long on Platinum but I can't stay short Gold given the technical move.

 

 

Cheers,

 

JB.

 

 

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Topics
      11,569
    • Total Posts
      58,869
    • Total Members
      77,919
    Newest Member
    LeeStubbs
    Joined 15/07/20 04:46
  • Posts

    • yes stops are a different story, though I might use prior swing levels for targets I prefer stops to be closer to the entry but appreciate their are many schools of thought. Some like very wide stops because getting direction right is easier than getting the exact entry place right so a wide stop provides leeway. I prefer to just get out early if price turns against and just keep looking, sometimes it takes a couple of bites before getting it right. Probably depends on how much time you have to keep watching the chart.
    • I tried fundamental analysis for years and its was pointless from a trading perspective (well for me anyway). long term investment sure . It takes ages and market just doesn't do what it says on the tin.  I see that many pro traders just focus on a few stocks for their whole career, maybe that's the way to go. Hard to know  Although it seems that everything is equally difficult. I never try FX as I know diddlysquat about that.     I have given up reading books, sick to death of those cherry picked charts and all the fluff like "trade at the start of trend" How the *** are you supposed to know with any degree confidence  that a trend is starting ? The $64,000 question which they all skip over.  Also the other usual  one is that "markets only trend of 20% of time". I could never understand that. Change the time frame and you can find trends  everywhere. 
    • Ha yes, yesterday's S&P candle looks a bit different from when I last looked last night. Dow bull flag on yesterday's high. FTSE and S&P daily. Dax and Dow H1 charts;
×
×