Free trading newsletter
Market effects, sometimes called seasonal effects, are recurring patterns in the markets. Some patterns develop over days, some patterns occur during the day. The Gold Dumper strategy is used by the German trader, Holger Breuer.
Holger Breuer discovered an intraday pattern in the gold price. According to this trader the gold price has a tendency to weaken during the morning. The Gold Dumper trading strategy is designed to profit from this perceived, repetitive weakness.
|Suitable for||: Gold|
|Instruments||: Futures and CFDs|
|Trading type||: Daytrading|
|Trading tempo||: 2-3 signals per week|
|Using NanoTrader Full||: Manual or (semi-)automatic|
The strategy is based on weakness in the gold price. The Gold Dumper therefore only opens short sell positions. Because the strategy only looking opens short sell positions it is a good candidate to complement a portfolio or to complement other strategies, which tend to focus on buying positions.
In this German language article written by trader Holger Breuer, he describes his strategy in detail.
For a valid short sell signal to occur, the Gold Dumper trading strategy has these conditions:
This example shows a signal. The bleu line is the 5-day moving average. The gold price at 8h00 is below this average, which colours the chart background red. The trader opens a short sell position.
A position is closed, when either of these three events occur:
This example shows a Gold Dumper position, which reached the profit target (green line) after two hours. The stop loss (red line) did not come into play.
This example shows a Gold Dumper position, which is closed by the time stop at 15h45.
In his article the author states the strategy works better on some days than others. Traders are encouraged to filter signals based on what day it is. The strategy in the NanoTrader platform already contains a day filter. Users can simply switch days on or off to accept or reject signals.
Using the NanoTrader Full follow these steps: