I've got another Idea for you to look at! I haven't had any time to code it up for back testing yet but quickly running through some charts It looks like it would work.
Reasoning; any of these stocks, particularly the GC trade type we're looking at, will put in a yearly low, good trades usually make hundreds of percent at a minimum, some up to 10x. Looking through a few charts, I've noticed that 100% above the yearly lows is generally a good price level that determines if a stock is going to change trend. I.e. it doubles from the low, then it usually doubles again at a minimum.
System: - long term down trend - enter after C > 100% above the 52 week low - sell at 400% above the yearly low (double then double again) - Stop loss, TBD, trailing percent etc. etc. Min R:R is 1:2, a 50% stop would see new yearly lows so definitely invalidates the trade, I'd guess any trailing stop could get R:R 1:3 or higher pretty quickly.
I'll get around to coding something up in a month or so, but I just thought I'd share my thoughts, it could be a way of catching that early first wave.
