This is an example of a strategy for trading GLD in the daily timeframe developed by DLPAL S. The results are validated in TLT and SPY.
Below are the results of the search:
DLPAL S found a total of 11 strategies, 9 long and 2 short. Profit target and stop-loss are 2.5%.
Below is equity curve in Amibroker with code generated by DLPAL S:
Backtests includes commission of $0.01 per share.
Below is same exact system with no modifications backtested in SPY:
Performance is acceptable given that this strategy was developed for GLD.
Below is same exact system with no modifications backtested in TLT:
Performance is also acceptable given that this strategy was developed for GLD.
Conclusion is that the identified strategies by DLPAL may have some economic values. Further testing is required. This was just an example.
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Disclaimer: No part of the analysis in this blog constitutes a trade recommendation. The past performance of any trading system or methodology is not necessarily indicative of future results. Read the full disclaimer here.