$NUGT Closes above Resistance level 3
$NUGT (Direxion Daily Gold Miners Bull 3X Shrs ) Closes above R3 Resistance Level trading strategy rules
- $NUGT stock price closes above R3 ( resistance level , as calculated by using classic pivot point method) level
- Go short at next day’s open
- Exit at close next trading day
The formula used in the calculation of Classic R3 Resistance Level is
- R3 = PP + RANGE * 2
- PP = (HIGH + LOW + CLOSE) / 3
Below the backtest performance summary for the “$NUGT Closes above Resistance level 3” trading strategy during the last four years.
|$NUGT Closes above Resistance level 3 trading strategy Backtest Performance Summary|
|Total number of trades||19||Percent profitable||79%|
|Number of winning trades||15||Number of losing trades||4|
|Average profit per trade %||1.54||Median trade||-1.28|
|Average winning trade %||2.24%||Average losing trade %||1.09%|
|Largest winning trade %||10.15%||Largest losing trade %||2.26%|
|Max consecutive winners||7||Max consecutive losers||1|
|Ratio avg win/avg loss %||2.06||T-test||-2.59|
|Profit Factor||5.87||Outlier Adjusted Profit Factor||4.12|
Below the details of change from next day’s open to next day’s close ( as on 22 July 2013 , meant for 23 July 2013 open to close in this case) change , change % for $NUGT ETF, when ever $NUGT Closes above Resistance level 3 since last 4 years.
|Date||Next Day Change From Open 2 Close||CFO%|
ps: playing with 3X ETF is wee bit risky, so go with the small position sizes
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