Quote Originally Posted by aly View Post
Hi Billy,

Do you trade both robots or just the IWM Robot? How are you allocating yourself?

As you've alluded to before, I sometimes find the movement of GDX very random and hard to understand, even in light of pivot-based and other support/resistance clusters. Perhaps this is because few professionals trade it, based on what you've mentioned.
aly,

Pascal is trading heavily both robots. I mostly trade TNA and TZA, based on the IWM robot signals, but I can take up to 25% of my portfolio on selective strong buy GDX robot signals. TNA and TZA is not well suited to everybody, since an IWM drawdown of 10% can easily turn into 33% or more with TNA/TZA. I refer to 10% because it was the maximum drawdown of IWM in the backtest when using a fail-safe stop in case of volatility extremes.

You are correct, GDX is an amateurish instrument mostly driven by emotional investors who don't care at all about pivots and floor levels. Market makers tend to follow the crowd instead of leading. When they get short on inventories, they simply manufacture a huge gap up or down to panic the same crowd into reversing their position. On those occurences, multi-pivot do matter for a few days. Here the precious metals sector MF is much more effective than my own pivot methodology for exceptional returns. But the optimal trailing stop risk management is the same for both robots.
Billy
Billy