Spot Metals and Other

Question 1

Supply and Demand - Applicable in which markets?

Answer 1

Commodities - Yes
Equities - Yes
Crypto - Yes
Forex - No

Question 2

Overbought / Oversold - Reversals - applicable where markets have Supply and Demand?

Answer 2

Yes - Reversals occur where Supply and Demands is applicable because there is intrinsic value.

Question 3

Spot Metals - Which should you trade?

Answer 3

XAU - Gold
XAG - Silver
XPT - Platinum
XPD - Palladium

Question 4

Spot Metals - Which leverage?

Answer 4

If possible, leverage should be 20:1

Question 5

Spot Metals - What drives price change?

Answer 5

The metal, usually. Only with strong currency changes will the spot metal price change.

Question 6

Spot Metals - Trading Algorithm - What are the changes

Answer 6

NB - Reversals / Overbought and Sold is applicable on Spot Metals.
Find/Test/Tweak these (Stochastic) - Do not try and call Tops and Bottoms
Search for Reversal Indicators!!!
1. ATR
(2). - No Baseline (But Test if trading works or not with or without Baseline.
3. CI 1 - Change
4. Volume - Mostly Similar. Where Volume Indicator says it is a GO/YES and you are trading with the Trend then GO.
If Volume says NO GO/NO and you are with the Trend then still GO. If Volume says NO GO/NO and trading against trends or reversal then do not trade.
5. CI 2 - Change
6. Exit - Change

Question 7

Spot Metals - News Events

Answer 7

Unlike Forex - with sport metals the only big impact is USA Interest Rate Decisions.
And Elections - Stay away as with FX during Elections

Question 8

XAU/USD - Gold: How is it measured

Answer 8

Troy ounces

Question 9

XAU/USD - Gold: Background

Answer 9

• 10% is used in manufacturing, the rest investment, hedging
• Gold supply reducing
• Number 1 hedging instrument

Question 10

Spot Metals: What are the changes to Stop Loss

Answer 10

Due to smoothness - SL set at 1,25 ATR. When metal price reverse, it is most likely reversing and cut out sooner in metals than FX.

Question 11

XAG/USD - Silver: Background

Answer 11

• Supply reducing
• Most used in manufacturing
• Used in manufacturing and not recycled
• Two ways of looking at silver, price can go bullish due to supply/demand and economy or also, can go bearish due to silver used in manufacturing and in economic downturn in the economy manufacturing will reduce hence demand for silver will reduce

Question 12

XAG/USD - Silver: Explain ATR reading

Answer 12

ATR for XAG/USD - Silver is different than other metals
Other metals are like Japanese ATR, number in front of decimal, where Silver more like other FX only values after decimal

Question 13

XAG/USD - Silver: Volatility Explain

Answer 13

Silver more volatile / higher wicks and tails than other metals.

Question 14

XAG/USD - Silver: Signalling on both gold and silver at the same time?

Answer 14

If short signal on gold and short on silver at the same time then - split the risk, 1% each
If gold leads the other metal just by a day - say you got a long signal on gold but can see silver will also go long in the next candle or two - just go full 2% on gold.
-Preference always gold first due to smooth.
-If Silver leads in signal timing and you can see Gold is coming within a day - then split 1% each

Question 15

XPT/USD - Platinum - vs. Gold and Silver trading

Answer 15

Platinum trades totally independent from Gold and Silver.
When trading Gold and Silver you need to be aware of what the other one is doing.
With Platinum - you trade it independently.
Gold and Silver combined your risk is 2% but Platinum is it own 2%.
So you can trade 2% Gold + 2% Platinum at the same time.
Like with all metals - USD Interest Rate decisions are NB and should be monitored.

Question 16

XPD/USD - Palladium - Independently or not

Answer 16

Yes, like Platinum - no dependence on other metals, totally independent trade from other metals.

Question 17

Is the Weekly chart useful / can be used for Indices

Answer 17

YES - Weekly for Indices