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.