Gold Trade
The following trades were made utilising the Universal Trading Strategy outlined in Jeff’s book Supercharge Your Trading with CFDs. To order a copy of the book, click here.
| Date | Instrument | Quantity | Price | Currency | Investment | Profit/loss | Balance |
|---|---|---|---|---|---|---|---|
| 12 May, 2006 | XAU | -100 | $708.90 | US dollars | $708.90 | $0.00 | |
| 12 May, 2006 | XAU | 100 | $714.10 | US dollars | -$714.10 | -$520.00 | -$520.00 |
| 15 May, 2006 | XAU | -100 | $708.90 | US dollars | $708.90 | -$520.00 | |
| 15 May, 2006 | XAU | -100 | $699.00 | US dollars | $699.00 | -$520.00 | |
| 16 May, 2006 | XAU | -200 | $674.90 | US dollars | $1,349.80 | -$520.00 | |
| 16 May, 2006 | XAU | 200 | $679.50 | US dollars | -$1,359.00 | -$920.00 | -$1,440.00 |
| 16 May, 2006 | XAU | 200 | $691.10 | US dollars | -$1,382.20 | $2,570.00 | $1,130.00 |
| 16 May, 2006 | XAU | -200 | $677.51 | US dollars | $1,355.02 | $1,142.40 | |
| 16 May, 2006 | XAU | 200 | $677.45 | US dollars | -$1,354.90 | $12.40 | $1,142.40 |
| 17 May, 2006 | XAU | -200 | $698.00 | US dollars | $1,396.00 | $1,142.40 | |
| 17 May, 2006 | XAU | 200 | $702.61 | US dollars | -$1,405.22 | -$922.00 | $220.40 |
| 17 May, 2006 | XAU | -200 | $704.70 | US dollars | $1,409.40 | $220.40 | |
| 17 May, 2006 | XAU | 200 | $707.30 | US dollars | -$1,414.60 | -$520.00 | -$299.60 |
| 17 May, 2006 | XAU | -100 | $684.90 | US dollars | $684.90 | -$299.60 | |
| 17 May, 2006 | XAU | 100 | $689.10 | US dollars | -$689.10 | -$420.00 | -$719.60 |
| 18 May, 2006 | XAU | -100 | $683.70 | US dollars | $683.70 | -$719.60 | |
| 18 May, 2006 | XAU | 100 | $688.61 | US dollars | -$688.61 | -$491.00 | -$1,210.60 |
| 19 May, 2006 | XAU | -100 | $674.00 | US dollars | $674.00 | -$1,210.60 | |
| 19 May, 2006 | XAU | -100 | $669.00 | US dollars | $669.00 | -$1,210.60 | |
| 21 May, 2006 | XAU | 200 | $657.10 | US dollars | -$1,314.20 | $2,880.00 | $1,669.40 |
| 21 May, 2006 | XAU | -200 | $657.16 | US dollars | $1,314.32 | $1,669.40 | |
| 22 May, 2006 | XAU | -200 | $649.40 | US dollars | $1,298.80 | $1,669.40 | |
| 22 May, 2006 | XAU | 200 | $645.00 | US dollars | -$1,290.00 | $880.00 | $2,549.40 |
| 22 May, 2006 | XAU | -200 | $643.40 | US dollars | $1,286.80 | $2,549.40 | |
| 22 May, 2006 | XAU | 200 | $647.10 | US dollars | -$1,294.20 | -$740.00 | $1,809.40 |
| 22 May, 2006 | XAU | 200 | $651.10 | US dollars | -$1,302.20 | $1,212.40 | $3,021.80 |
| 24 May, 2006 | XAU | -200 | $659.90 | US dollars | $1,319.80 | $3,021.80 | |
| 24 May, 2006 | XAU | -200 | $649.90 | US dollars | $1,299.80 | $3,021.80 | |
| 24 May, 2006 | XAU | 200 | $653.10 | US dollars | -$1,306.20 | -$640.00 | $2,381.80 |
| 25 May, 2006 | XAU | 200 | $647.60 | US dollars | -$1,295.20 | $2,460.00 | $4,841.80 |
| 25 May, 2006 | XAU | -200 | $640.89 | US dollars | $1,281.79 | $4,891.40 | |
| 25 May, 2006 | XAU | 200 | $640.65 | US dollars | -$1,281.30 | $49.60 | $4,891.40 |
| 26 May, 2006 | XAU | -100 | $647.90 | US dollars | $647.90 | $4,891.40 | |
| 26 May, 2006 | XAU | 100 | $653.60 | US dollars | -$653.60 | -$570.00 | $4,321.40 |
| 31 May, 2006 | XAU | -100 | $651.60 | US dollars | $651.60 | $4,321.40 | |
| 31 May, 2006 | XAU | 100 | $654.60 | US dollars | -$654.60 | -$300.00 | $4,021.40 |
* Past performance is no guarantee of future performance.
The profit for this period of approximately 2 weeks is $4021.
The results are summarised in the table below.
| Wins | 7 |
| Losses | 10 |
| Hit rate | 41% |
| Average win | $1,437.77 |
| Average loss | -$604.3 |
| Edge ratio | 2.38 |
The results are typical of a trend following system with a hit rate of 41% and an edge ratio of 2.38. Ideally the edge ratio could be higher to ensure a robust trading strategy. The margin requirements for 100 contracts of gold are approximately $1800. The return on investment is over 100% in 2 weeks.