Chart analysis on $Gold 05.01.2017

On December 8th 2016 I opened a buy trade on $gold on eToro at $1.177,30, just to watch the price of this precious metal to fall to $1.126,56. Fortunately I stayed patient and confident (check out my comment in this former post). Today my trade finally turned green. Here is my analysis whether to keep or close the trade.

Portfolio chart analysis 22.12.2016

Markets have been surprising in the last weeks. Not only did I make some bad trade decisions, no, all traders I copy right now on eToro are between 5 and 30% in red. So I am not the only one who got surprised and messed up. Anyhow, now I am here, two days before Christmas wondering what to do with those unfortunate trades:

Sell $Ger30: -33% and -38%
$Copper: Sell +23%, Buy -34%
Sell $DJ30: -11%
Buy $Gold: -21%

I am especially worried about the $Copper and $Ger30 trades so I tried myself analyzing the charts of those assets. The target is making decisions whether to hold or close those trades or to tighten the stop loss limits. As usual I like to share and discuss my thoughts with you in this post.

Chart analysis on copper 02.10.2016

After my last analysis I forecast a slight downtrend on Monday morning followed by an uptrend towards the end of the week. That was exactly what happend (see post on my last analysis here). Only problem: I didn't trust in my own findings and did not invest accordingly. Total gain depending on exact opening and closing price would have been between 1-4% with a leverage of 1. Now I wanted to give it another try and investigated the 4h-based and the 1d-based charts with different indicators.

strategy backtest pt.2

In the last weeks I worked hard on developing a suitable backtesting tool (see posts for version 1 and version 2). In order to compare different strategies I developed a performance index that I described in this former post. Now it is time to investigate strategies and present first results.

Chart analysis on copper pt.2

In my last post on copper I described the situation with my open trades. As you can see in my eToro portfolio history and news feed I managed to close both trades with a small profit. After gaining confidence on my chart analysis skills I opened a sell trade with leverage of ten on September 13th. 3 days later I lost 31,5% (trade is till open)! Time to analyze...

First trading strategy backtest

This week has been quite emotional, since my trades on copper where quite different from my expectations. At one point I kind of panicked and - as result - made wrong trading decisions. That was the clear sign to start working on more detailed and sophisticated trading strategy.

How I choose my time basis for chart analysis

When I first tried to analyze a stock chart I wondered which time basis I should choose. Many traders  on eToro give some information about their personal attitude and I am looking forward to get more detailed insights from @Trex8u247 soon. While waiting I studied charts and thought about what they are trying to tell me about the market-trend. Here is my theory based on my experience so far:

Chart analysis on copper pt. 1

My first investment in commodities was copper. I figured there is a buying signal in the chart so I opened a trade with a leverage of 5. The next morning I already saw a selling indicator on the chart: There was a plateau starting on the upper Bollinger-band.