This strategy has captured the majority of the major market moves in the Platinum-Gold spread since 1977. This report enables you to generate trades and watch them work. Recommended minimum for this strategy $25,000 or major currency equivalent.
1) 20 year historical price correlation between Platinum & Gold
2) Contracts we’re trading to capture the moves up or down
4) We Trade the contact months with the highest volume
5) If you believe Gold will continue to gain on Platinum
6) If you believe Platinum will gain on gold
7) The simple and effective way to determine the direction of this spread
8) How to track the trades generated
9) Send us a message or schedule and online review
1) Platinum versus Gold using monthly price data last 20 years.
2) Contracts we’re trading
3) We trade the contact delivery month with the highest volume
4) If you believe Gold will gain on Platinum
- Buy 1 Gold futures contact GC (long 100 troy ounces)
- Sell 2 Platinum futures contracts PL (short 100 troy ounces)
5) If you believe Platinum will gain on gold
- Sell 1 Gold futures contract GC (short 100 troy ounces)
- Buy 2 Platinum Futures contract PL (long 100 troy ounces)
6) The simple way we determine direction of this spread is using a Moving Average Exponential (9).
6.1) If price action is above the red line buy 2 Platinum, sell 1 Gold contract
6.2) Below the red line Sell 2 Platinum, Buy 1 Gold contract
6.3) Each $1.00 change in the spread’s price = $100
6.4) Allow $0.75 to cover all bid/ask spreads and brokerage fees ($75)
6.5) Put up $25,000 per position to avoid margin issues
7) Use this chart to determine direction, if price action is above the red line buy Platinum, sell Gold, below the red line sell Platinum buy Gold.
8) Use this 15-minute chart to monitor the profit or loss, each $1.00 change in the spread price equals $100.00.
Current extreme fundamentals are very likely to continue generating major market moves for this spread, I’m looking forward to an exciting year capturing them.
Peter Knight Advisor