Why Trade the Short Clips Trading System?
Jan0
What is the Short Clips trading system? It is a system that uses a simple mechanical entry technique to trade a basket of commodities including: the grains, softs, meats, petroleum products, metals, currencies, financials, and stock indices. This strategy determines when a strong trend in place for a given market, and then looks for pullbacks from that trend to make a low-risk entry in the direction of the trend. All trades are entered, “market on open” at the start of the trading day, and exited “market on open” at the end of the trade, unless the trade is exited via a stop loss.
The Short Clips trading system was developed by Keith Fitschen. This trading system is a shorter term strategy which looks to take “small bites” out of a sweeping trend. Thus the average trading profit is smaller than a typical longer-term trading system, but the hold time is also shorter – on the order of 3 to 5 days. This shorter-term trading yields a higher percentage of winning trades than a longer term system, and is not subject to the open equity giveback problem of longer term strategies. Across a basket of over 60 commodities, the Short Clips strategy has averaged a profit of $161 per trade since 1980. The system averages about 7 trades per year on each commodity.
The Short Clips strategy tries to capture small profits while a sweeping trend unfolds in a commodity. It works across all the commodity groups, but it works best with the groups that tend to trend the most: commodities like the currencies, financials, energies, and metals.
The Short Clips trading systems trades across the commodity groups to mitigate the effects of losses in one group. Over the course of a year, a number of groups will have trending periods. These periods will produce profits that typically offset losses in the other groups. The performance of the system over a basket of commodities can be measured very easily with the user-friendly software provided with the fully disclosed system.
Short Clips uses portfolios to provide a trading plan for various account sizes. The portfolios are constructed by selecting the lower risk commodities in each group. Larger portfolios add commodities to further diversify. Portfolio performance is measured by using the software to construct equity curves and compute annual return and drawdown.
Short Clips is fully disclosed to traders who purchase the product. Knowing the basis behind a strategy helps a trader to stay with the trading when drawdown occurs. The strategy is implemented in user-friendly software that allows a user to generate daily signals, back-test historical performance on individual commodities, and back-test the historical performance of the various portfolios.
The writer John has done hard work to attain the required target. He has been studied in detail all about the trading system from different resources so that the stuff he write is useful for those who read. For More information please visit Short Clips trading systems Article Source:http://www.articlesbase.com/day-trading-articles/why-trade-the-short-clips-trading-system-1666155.html
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Bullion Gold & Silver Investments
Jun0
When somebody hears the word “precious metals,” the first thing that comes to mind is bullion gold silver. From traditional trade caravans traversing seas and deserts to modern day monetary establishments that span the globe, these two metals have had a long and intense relationship with man’s endeavors to trade round the world.
But how exactly is gold and silver presented to people?
Ingots
Gold and silver ingots are probably the most common form of the metals when it comes down to major investing and trading. These bars can be sometimes classified into two types: heavy 400-ounce bars (weighing in at a particularly big 12.5 kilograms apiece) or lighter ‘kilogram’ bars, weighing the same as their namesake: 1,000 grams.
The latter type of ingots is employed for easier liquidity and resale, but comes at a higher premium cost due to the producing and verification expenses. The former is employed for bulk investments due to their lower mass-to-cost ratios and is commonly stored at banks due to their heavy weight and difficulty in transporting. Shifting ownership due to trade would then be passed around by legal documents.
Coins
Coins are another of the more common forms of gold and silver around the globe. Their tiny size and relatively light weight makes coins the best choice for valuable metal traders and collectors alike.
There is also another bonus to investing a hundred thousand dollars in coins : older coins like the American or European versions minted before 1933 are treated as historical relics. This adds even more value to the coins as time passes – making them safer and sounder investment and trade options than normal unmarked gold and silver coins.
Jewelry
Gold and silver jewelry is one more common way to transact in the business, though with a more cultured touch than their plainer counterparts.
Rings, pendants, bracelets and similar golden and silver accessories are all wonderful ornamental additions to the body. However, the trade value of jewelry is prone to more risk than more common ways of trading. The style of the pieces may become friendless as time passes, and jewelry rarely sells for over when they’re purchased as time passes. So buy jewellery if you enjoy collecting precious metals, but plan carefully if you plan to invest heavily in it.
Leafs
Gold and silver leaves are especially fascinating paths to keep gold. These paper-thin versions can weigh as little as fifteen grams and can be rolled up and stored in different locations.
These highly thin small leaves often serve one of 2 purposes : decorations or concealment. The previous simply rolls gold and silver into these thin wafers for their beautiful effect, while the second purpose rolls the dear metals into leaves for easy transport and concealment. This made gold leaves extremely favored in war-ridden states, where the value of currency is close to worthless.
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