Confusion Only For the Latecomers! July 8, 2011

[davidallison@gmail.com]

I am having a problem understanding why the GDX robot is willing to take so much risk and is basically disregarding the confluence support area in protecting the capital of the owner of this security. At closing of $56.25, the robot is willing to sell stop the shares at 6.58% below the close in the context that ATR% is 2.56% which is almost a 3 standard deviation event. This makes no sense to me and does not appear prudent at all. Again, the implicit Expected return appears to be around 18.4% but I, as a prudent trader would not be willing to wait for the stop to be hit on this trade. And it has nothing to do with emotions...!

Pierre

Pierre, I'm sure Pascal or Billy will say something, but if you had entered the trade at "The buy entry price was 53.26 and the current stop level is 52.55. Last close: 56.25" your stop is only 71 cents below your cost. Did you enter the trade at 53.26? If not, you are comparing apples to oranges. Dave

[roberto.giusto]

I believe comments should be about each single robot's logic and then their interaction to reach the optimal portfolio performance.

As Pascal wrote recently, the GDX robot is going to change some of its logic and will be no longer influenced by pivots analysis.

It could be more interesting to have a comment, when useful, about the new robot logic for GDX, instead of posting comments on a logic that it is not going to follow anymore.

Just my 2 cents.