For those of you who are using our Gold Rush system, by now you will have discovered that there is a weakness related to using 0.1 lots and US$50 spacings:

Let’s say you have a buy limit order set at US$875 and a TP of US$925 on that order, and perhaps another open US$925 long with TP at US$975. Then, the market goes to US$880 (just above the US$875 order, so it’s missed) and then proceeds past the US$925 (missed TP point because you didn’t buy at US$875) and onwards to US$965 (this happened recently): This results in no trades, and no profits over a range from US$880 to US$965 in the example above… a big move!

The good news…

To address this weakness, we’ve now created our very own EA: Gridder EA. This is automated software which buys an order 1/10th the size, but 10 times as often, with the same US$50 TP objective on each order. You’ll struggle to do this manually and that’s a big advantage with expert advisors…AKA “Robots”.

That is, instead of buying 0.10 lot every US$50, you get your Robot to buy 0.01 every US$5 with the same TP objective of US$50. It’s vastly more efficient this way, and involves negligible additional downside risk that is outweighed by the vast increase in efficiency. (An MT4 generated backtest to be tendered in a future post will confirm this).

The standard system will still be profitable over the long term (and we will continue tracking it), provided gold keeps within its range of the last couple of years or goes higher. If the standard system really appeals, you needn’t change a thing.

The really good news…

The proprietary Gridder EA is complimentary to all current Gold Rush clients as a thank you for your business. And into the future, it will be added to the package as well as being available as a standalone trading tool. The Gridder EA is a very useful tool once you learn how to apply it and we use it everyday to assist us in actively managing our Miner and Hunter accounts.

So, is there any catch? Not many in fact, but here they are:

• You will need to upload and setup our Gridder EA.
• You will need to use FXDD broker in the US, the only broker I know that offers gold in 0.01 lot sizes.
• You will need to have your MT4 platform running 24/5 (or get it hosted on a virtual server, we can help you there too).
• You will need to advise us of the account number on which you intend to trade and we’ll send you the compiled EA/Indicator combination with full instructions.
• There is only 1 demo and 1 live account activation per licence.

Those of you interested in the performance of this simple new approach using the Gridder EA set in the afore-mentioned fashion, just click here, which will take you to a recently commenced US$10,000 demo. Save this link and refer to it from month to month and see it’s “slowly but surely” progress…that is if you can call 5% per month slowly.

Don’t let the fact it’s a demo put you off either – with this particular type of system, demo testing is as good as live money (not the case with scalping EA’s for eg). We do, for the record, run a small portion of our portfolio with the standard system, but obviously for us (and Managed Gold Account clients) the larger portions, Adam trades manually.

That’s all for now. Cheers to our prosperity.

Kind Regards,