The displayed message is in error.
We are still long.
Pascal
The displayed message is in error.
We are still long.
Pascal
I am running only one ETF model. The same for all ETFs, otherwise maintenance becomes a real issue.
The GDX Direction model is now above a protection state (the 0 level, which is more than 2 days away) and below the Overbought state, which is at about 1.3%. Once that level is reached, it will become a new protection level.
Basically, there is nothing to do: keep the position and raise the stops when required.
Pascal
Thanks, Pascal. Is the 1.3 threshold a "fixed knob" for all ETFs then? Would it make sense to have a cascade of protection levels other than 0.0 and 1.3? I'm also not sure how the protection levels and the stops co-interact, are they merely serving as an independent (price-based) protection level?
Trader D
There are still parameters in the model, but these are now "self-discovering" and they will adapt to the market environment. This is why I wrote that the OB level is "about" 1.3% for GDX. It is at that level now, but this might change.
There is a fixed - last line of defense - stop in the model, but this stop is hit about 2% of the time. Usually, the trade is exited on a signal change or when we reach a protection level.
Pascal