Another Winning Year For This Gold System
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Is a stock market crash coming?
Most people think so.
And SPY is still pretty far above its 200-day moving average. That means it's due for a correction.
So, if a crash is coming, is there anything we can do?
Of course.
We could sell everything and go to cash like Berkshire Hathaway has recently. They're sitting on billions. Why? Because there aren't any good value stocks on sale.
We could sell everything, too.
But that's not a great solution.
We could also buy inverse funds. Those go up when the market goes down.
But the market goes up 75% of the time, so inverse funds are basically just throwing away money (although some people like the idea of having crash insurance).
Or we could use a trading system on Gold.
Why Gold?
Because Gold is supposed to go up when the market realizes its insanity and flocks to something tangible that can be hoarded.
But does Gold really go up in bad times?
Let's check it out.
And we'll use the Performance Page Portfolio Gold System as a proxy.
We know that 2022 was a bad year for the stock market.
How did PPP Gold do?
Trading 1 contract each time on this PPP trend following strategy worked well in that Bear Market.
How about 2008?
It worked even better in 2008.
In fact, this breakout system hasn't had a losing year in quite some time. Here are the Annual Returns since 2016:
It's won every year including 2025.
So, what's the catch?
Well, it doesn't win every year. Here are the returns and the curve since 2008:
There are a couple of small losing years in 2014 and 2015.
Does that mean this system isn't useful?
Well, that depends, of course.
If you're looking for a system that makes 50% per year and never loses and never has a drawdown, then something like this definitely isn't for you.
But if you're looking for something that goes on years-long winning streaks and does well when the stock market does poorly, then this system is something to consider.
As you know, the details of this system are on my Performance Page (click the link on the Performance page for the video that reveals the parameters).
Next week, we're going to start discussing simple retirement strategies using income, growth, and/or a combination.
If there's any other topic you're interested in, you can always let me know.
I just can't think of anything more important than actual financial freedom and the ability to safely pull money out of a trading account.
Talk to you soon.
DISCLAIMER: This is not financial advice.
It should not be assumed that the methods, techniques, or indicators presented in these videos will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
