Buy the dips?
So, I am sick with the Rona and needed a low stress trade today. Traded GLD twice and there was no skill. I literally just bought the dips. That's it. No TA. No math. Just literally bought the dips. My trades are listed below, I still have a couple runners:
But this made me think. Is GLD 2022 version of 2021 SPY? Can you literally just buy the dips?
Of course, I have to answer that question with statistics.
If you bought the dips since January of this year on GLD, here would be your outcome:
(For clarity, I define a "dip" as a drop below VWAP on the 5 minute chart. For this theoretical case study, I assume you would enter on confirmation that the dip had bottomed and was beginning its ascent and you would take profit at a retest of VWAP or slightly over VWAP).
You would have been successful 73.1% of the of time.
You would have had to stop out 14 times, or 26.9% of the time.
The remaining days there was no drop below VWAP and thus no dip to buy.
A little deja vu-y with SPY in 2021, no? Only I think in 2021 with SPY, you would have had to stop out 0 times LOL!
Your average return per share would have been 0.94 cents (SD = 0.53).
If you traded shares and traded a conservative 100 shares at a time, your gross profit would be:
$1,316
Minus stop outs (set at 20%) would be roughly 263.20.
For a net profit of $1,052.80.
Interesting!
Let's face it, SPY was so 2021. GLD is where its at now!
(Please note, this is for INFORMATION purposes only, I do not advocate such a strategy! It would be ridiculous and reckless. Do your due diligence before entering any given trade!).
But this made me think. Is GLD 2022 version of 2021 SPY? Can you literally just buy the dips?
Of course, I have to answer that question with statistics.
If you bought the dips since January of this year on GLD, here would be your outcome:
(For clarity, I define a "dip" as a drop below VWAP on the 5 minute chart. For this theoretical case study, I assume you would enter on confirmation that the dip had bottomed and was beginning its ascent and you would take profit at a retest of VWAP or slightly over VWAP).
You would have been successful 73.1% of the of time.
You would have had to stop out 14 times, or 26.9% of the time.
The remaining days there was no drop below VWAP and thus no dip to buy.
A little deja vu-y with SPY in 2021, no? Only I think in 2021 with SPY, you would have had to stop out 0 times LOL!
Your average return per share would have been 0.94 cents (SD = 0.53).
If you traded shares and traded a conservative 100 shares at a time, your gross profit would be:
$1,316
Minus stop outs (set at 20%) would be roughly 263.20.
For a net profit of $1,052.80.
Interesting!
Let's face it, SPY was so 2021. GLD is where its at now!
(Please note, this is for INFORMATION purposes only, I do not advocate such a strategy! It would be ridiculous and reckless. Do your due diligence before entering any given trade!).
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