Long Term Secrets To Short-Term Trading

Figure 10.9 Bond sells TDM 12. 
Whereas traditional commodity market analysts would try to filter this trading opportunity with 
technical "junk" like the trend, oscillators, or momentum flows, I would rather go back to what matters; 
fundamental relationships, that of Gold to Bonds. After all, charts and oscillators do not move the market, 
underlying conditions do. 
In addition to now having a real way to trade this mid-month dip, we are also able to again see the 
power of fundamentals in Figure 10.10. The trade entry and exit rules are exactly as in the previous clip, the 
only difference-and what a difference it makes-is that trades were only taken when Gold had closed greater
Figure 10.10 Bond sells TDM backed by gold. 

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156 
than the close 10 days ago. In other words, Gold was in an uptrend, which suggests to us that sell signals 
should be more effective in this monetary environment. The average profit per trade more than doubles, 
profits get bumped up $6,000, accuracy goes from 76 percent to 78 percent, no big deal, but our drawdown 
to profit percentage is just about halved from 20.9 percent to 11 percent. Perhaps best of all the average 
profit per trade jumps to $359 from $133. 
Here we have a very tradable opportunity. All one need do is have the patience to wait for the 
mid-month time periods when Gold has been in an uptrend: that is the fundamental setup that created these 
results. 
Patience seems to be the one commodity commodity traders have in short supply. Most people must 
like to trade for the heck of it, I guess. I want to wager or speculate only when I have a distinct advantage in 
the game. If it is not there you know where I will be ... on the sidelines . where I belong. I hope you will be 
there with me! 

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Chapter 11 
When to Get Out of Your Trades 
Never begin anything until-you have reflected upon the end of it 
I have three rules for you to follow to get out of your trades: