Gold trend following with the 200-day average
Hold gold only while it is rising: above its 200-day average in gold, below it in short-term bonds.
The rule
Compare the gold price with its average of the last 200 days. Above: hold gold. Below: sell and wait in safe short-term bonds.
Why people use it
Gold pays no interest and can go nowhere for years, but when it moves, it tends to move for a long time. A trend rule tries to be there for the long runs and away for the dead years.
Where it hurts
Gold often jumps around its average without a clear direction, and each false signal costs a little. In a long flat period the bot simply earns the bond rate.
How our bot runs it
The bot compares GLD with its 200-day simple average at every close. Above it holds GLD, below it holds BIL.
Live account
A virtual $100,000 account that follows this rule. Every trade is on the bot's page.
| Bot | Account | Return |
|---|---|---|
| Gold trend | $99,939 | −0.06% |