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View Full Version : State of the GDX EOD and RT Models - March 1, 2012



Billy
03-01-2012, 06:44 AM
There are still no EOD advised setups both for the GDX and the IWM robots.
The GDX ATR is still too low for triggering any EOD short signal. And any countdown to an EOD buy signal is delayed until the GDX MF closes below its porosity threshold (below -0.14 %) on an end-of-day basis. This did not happened Wednesday. So, the GDX robot is in a waiting mode.
However, the RT model broke the porosity level intraday and could trigger an intraday buy signal if it trades back above the 0% + porosity threshold (0.14%).
There will be a RT buy signal above 0.14% (blue dotted line).
The pink line is the protective level for going back into cash or shorting, depending on the ATR level. The EOD robot still needs to see a close below that pink line before considering a new buy signal on a subsequent reversal.

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The distance between the blue and the pink line is exactly the average MF change on a normal day. Therefore, a whipsaw should be avoided on any “normal” day. But if we have other strong moves in the MF like yesterday, the porosity levels could be hit quickly and leave the RT model being shaken into a whipsaw.
Billy

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