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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: kimberley who wrote (128994)	8/1/2019 4:14:19 PM
From: GROUND ZERO™	3 Recommendations Recommended By Eva kimberley toccodolce Read Replies (1) \| Respond to of 218566

Yes, let's do UGL/GLL as a spread as an example and calculate that ratio since we now have the last traded price of the day... UGL finished at 45.72 GLL finished at 58.22 Divide UGL by GLL, so that's 45.72 divided by 58.22... That gives us .785 This means for every 100 UGL that you buy, you also buy 78.5 GLL... 500 UGL would be 393 GLL... 1000 UGL would be 785 GLL, and so on... This morning when I put on that spread the ratio was smaller so I bought 1000 UGL and 700 GLL... Very honestly I expected to see gold move lower, BUT it rallied to my surprise and I made money anyhow because that's how it works... For today on this spread it made $69.00 without having to think about direction... that's a pretty large gain for the very first day... over a few months with a good move in gold we're looking at thousands of dollars in profits... As the markets continue to move, the ratio will become larger or smaller depending on the market direction... since UGL moved higher and GLL moved lower, you can see the ratio is now a larger number... Take a look how the ratio changes over a two month move as we just had, the profits are very large while not having to think or worry about anything... Once you get a signal to reverse, then sell of the profits from one side of the spread, it's really very nice... Any questions, just ask... GZ