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Security Builder

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Security Builder

  1. 1. Gold & Silver ETFs Jay A. Leavitt Ph.D.
  2. 2. <ul><li>Cautious Entries </li></ul><ul><li>Fast Exits </li></ul><ul><li>Safely in Cash Most of Time </li></ul>
  3. 3. <ul><li>Skim Profits as they Build </li></ul><ul><li>Profit Exits on Pull Back </li></ul><ul><li>Never Add to a Position </li></ul>
  4. 4. <ul><li>Choose your comfort zone </li></ul><ul><ul><li>Gold ETFs </li></ul></ul><ul><ul><ul><li>Trade GLD [1x] or UGL [2x] </li></ul></ul></ul><ul><ul><li>Silver ETFs </li></ul></ul><ul><ul><ul><li>Trade SLV [1x] or AGQ [2x] </li></ul></ul></ul>
  5. 5. Simulated UGL & AGQ data prior to 1/1/2009.
  6. 6. Symbol Leverage % Winning Trades Largest Losing Trade % Time in Market Gain on $100,000 Gold GLD 1X 73.68 3.68% 28.78 $107,441 UGL 2X 73.68 8.07% 28.78 $277,947 Silver SLV 1X 86.96 4.50% 13.60 $154,171 AGQ 2X 86.96 9.13% 13.60 $615,680
  7. 8. <ul><li>Whenever GLD & SLV are in cash, other select equities may be traded with this strategy </li></ul><ul><li>Select Equity Qualification </li></ul><ul><ul><li>Profit Factor > 4 </li></ul></ul><ul><ul><li>Percent Winning Trades > 70 </li></ul></ul><ul><ul><li>Number of trades > 15 </li></ul></ul><ul><ul><li>Percent Time in the Market < 30 </li></ul></ul><ul><ul><li>Note: Subscribers are welcome to nominate equities </li></ul></ul>
  8. 9. <ul><li>Several E-mail Messages per Week </li></ul><ul><li>All Trades Reported After Trading Hours For Next Day Execution </li></ul><ul><li>Auto-Trading Supported </li></ul>
  9. 10. <ul><li>[email_address] http://www. GrabtheCashandDash.com (828) 863-2233 </li></ul>

Editor's Notes

  • This presents a unique investment strategy for trading unleveraged and leveraged ETFs for Gold and Silver. The presentation will show that this strategy can generate consistent and robust returns with low draw-down and small exposure of your equity to risk It does not take a sophisticated trader to implement the strategy. All of its components are permitted in IRAs.
  • This strategy was designed from the start to be conservative. The strategy looks for market patterns that have a high probability of success, Its entries are cautious. Money management adhers to a Take the Cash and Dash philosophy. This results is short durations in a trade. Most importantly, you are safely in cash most of the time which equates to low exposure of your equity to risk. Yet, you will see impressive results.
  • Here’s my Grab the Cash and Dash money management philosophy. I never add to a position as profit grows. Not only are profits skimmed, but the equity at risk is also reduced. Equity is simultaneously taken off the table as the profit grows. I don’t think twice about an exit. Given a signal, I exit, I don’t hesitate hoping for a reversal. I assume there’s no pot of gold at the end of the supposed rainbow.
  • Depending on your trading style and your objectives, you can choose either unleveraged or leveraged ETFs. Either choice will be productive and safe.
  • These charts display the growth of equity during the back-testing. The blue line is the plot of the growth of equity for unleveraged ETFs during their back testing trades. The red represents the two times leveraged ETFs. From the test start through December 2008, the leveraged data had to be simulated because these ETFs were not introduced until 2009.
  • UGL uses the GLD signals for its trades. AGQ trades similarly with the silver ETF, SLV. You can see the percent of winning trades is very high and the losing trades very small. The gold strategy leaves you away for risk over 70% of the time. Your are away from risk with silver more than 85% of the time.
  • Many are not satisfied being in cash that amount of time I have found a number of equities the work very well with this strategy.
  • I call these Select Equities. While each has nice returns, I consider this criteria more important. Sound sleep each night is critical. Foremost is Profit Factor. The total dollars of profit must exceed those of losses by a factor of 4. For most investment strategies and equities, this is rare. The profit factor for each gold and silver is over 7. It don’t like losing trades. It’s not as important as profit factor, but I want it better than 70%. It has to be at least 15 trades in its back-test to insure the results. Finally, I want its trades to be selective and short in duration. Subscribers to my newsletter are welcome to have me evaluate how well their favorite stocks perform with my strategy. Select equities will be tracked when both gold and silver are in cash.
  • Through my newsletter, you will be trading when I do, not after. You will have plenty of time to plan your trades. Each time there is a trade signal for the next day, notification is sent out in our newsletter between the close and before the following open. The notice contains instructions such as ETF symbol, entry price, percent of holding to skim or close condition.
  • Contact me if you have any questions. No question is ever trivial, and I am here to help. Subscribe to my electronic newsletter and profit from my trades. Even though my website is in development, the newsletter is active . Thank you for watching my video.

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