GDX Robot Reverses To A Long Position - March 26, 2012

[Billy]

The EOD GDX robot will cover its short position and buy a new long position at the open today. The initial stop for the long position will be set 5.65% below the entry price. Another protection is active if the Money Flow closes the day below the average MF (currently -0.47%) minus porosity (-0.089%).

The RT GDX model has already reached another protective stage since the buy-from-oversold signal on 3/14. This protection is triggered because the Money Flow traded over the 0% + porosity (0.089%) intraday last Friday. A short trade would be initiated if it drops below the 0% line minus porosity (-0.089%) intraday this Monday.

After a trend day like Friday, we expect the most frequent occurrence of a range day (bounded by Daily R1 and S1) the following trading day. This expectation would be negated if GDX trades above Daily R1 (50.27) or below Daily S1 (49.04).

Among the technical signs of bullishness we will notice that GDX closed just above Friday’s VWAP (49.71), 5-day VWAP (49.60) and the new Weekly pivot (49.57), The support clusters are building strength and are overpowering the resistance clusters by a total strength ratio of 13:10.
The IWM robot is still in cash.
Billy

[manucastle]

The EOD GDX robot will cover its short position and buy a new long position at the open today. The initial stop for the long position will be set 5.65% below the entry price. Another protection is active if the Money Flow closes the day below the average MF (currently -0.47%) minus porosity (-0.089%).

The RT GDX model has already reached another protective stage since the buy-from-oversold signal on 3/14. This protection is triggered because the Money Flow traded over the 0% + porosity (0.089%) intraday last Friday. A short trade would be initiated if it drops below the 0% line minus porosity (-0.089%) intraday this Monday.

After a trend day like Friday, we expect the most frequent occurrence of a range day (bounded by Daily R1 and S1) the following trading day. This expectation would be negated if GDX trades above Daily R1 (50.27) or below Daily S1 (49.04).

Among the technical signs of bullishness we will notice that GDX closed just above Friday’s VWAP (49.71), 5-day VWAP (49.60) and the new Weekly pivot (49.57), The support clusters are building strength and are overpowering the resistance clusters by a total strength ratio of 13:10.
The IWM robot is still in cash.
Billy

Attachment 13586
Attachment 13587

Billy,

The RT short dignal has just tripped has it not ?

Trev

[davidallison@gmail.com]

It strikes me the porosity level should not only be adjusted for volatility, it should be adjusted for gaps. To me it's normal with the gap up, it would be sold off slightly. Had we gapped down this morning I bet we wouldn't have seen the MF go below zero. IMHO

Dave

[Billy]

Billy,

The RT short dignal has just tripped has it not ?

Trev

Yes, the RT model is now officially short.
David, about gap adjustments for porosity, how would you do it?
Billy

[Pascal]

It strikes me the porosity level should not only be adjusted for volatility, it should be adjusted for gaps. To me it's normal with the gap up, it would be sold off slightly. Had we gapped down this morning I bet we wouldn't have seen the MF go below zero. IMHO

Dave

This indeed could be an inde for further improvements.
As of now, the GDX RT has turned to a short position and will revert to a long if/when we revert above the + porosity level.

I will post the trades track record in a few minutes.



Pascal

[Pascal]

This indeed could be an inde for further improvements.
As of now, the GDX RT has turned to a short position and will revert to a long if/when we revert above the + porosity level.

I will post the trades track record in a few minutes.



Pascal

Attachment 13596

The EOD and RT trades are attached.

Pascal

[davidallison@gmail.com]

Billy,

I really don’t know what I’m talking about, it’s just an idea. Very simply for the RT system only, the larger the gap, just increase the porosity level incrementally. If price had opened flat today, use .089%. If price gaps a certain percent, just increase porosity levels a certain percent, for that day only. Porosity levels are based on past volatility but it seems to me gaps are an increase in intra day volatility, so increase the level for the day, if we gap. Or increase the lower porosity level for gap ups, and decrease the upper porosity level for gap downs. I didn’t expect MF to get to -0.27, but I did expect price to fall off from open, as most of the white candles have tails from gap ups. I was wondering how MF would react. It will be interesting to see if that was the low MF for the day.

Dave

[Billy]

Billy,

I really don’t know what I’m talking about, it’s just an idea. Very simply for the RT system only, the larger the gap, just increase the porosity level incrementally. If price had opened flat today, use .089%. If price gaps a certain percent, just increase porosity levels a certain percent, for that day only. Porosity levels are based on past volatility but it seems to me gaps are an increase in intra day volatility, so increase the level for the day, if we gap. Or increase the lower porosity level for gap ups, and decrease the upper porosity level for gap downs. I didn’t expect MF to get to -0.27, but I did expect price to fall off from open, as most of the white candles have tails from gap ups. I was wondering how MF would react. It will be interesting to see if that was the low MF for the day.

Dave

Dave, these are very constructive logical observations and we'll take them into account for further improvements.
As you know, we are all discovering the RT tools. It is incredible how fast Pascal has already made the RT model effective. And I won't even talk yet about even better advances that are in the pipeline.
That's what's so exciting about the EV website adventure: continuous interaction with the users make all this a collective work in progress for approaching perfection!
Billy

[Pascal]

Billy,

I really don’t know what I’m talking about, it’s just an idea. Very simply for the RT system only, the larger the gap, just increase the porosity level incrementally. If price had opened flat today, use .089%. If price gaps a certain percent, just increase porosity levels a certain percent, for that day only. Porosity levels are based on past volatility but it seems to me gaps are an increase in intra day volatility, so increase the level for the day, if we gap. Or increase the lower porosity level for gap ups, and decrease the upper porosity level for gap downs. I didn’t expect MF to get to -0.27, but I did expect price to fall off from open, as most of the white candles have tails from gap ups. I was wondering how MF would react. It will be interesting to see if that was the low MF for the day.

Dave

Looks interesting! I'll think about this.


Pascal

[senco]

Is the message on the RT view intended to be updated in real time? Or is it for the status of the EOD system?