My Gold and Silver strategy for ranging days

#1

I have been using this strategy for months with success. I look for a day when SI & GC are ranging and either do a BF or pick a direction. Some days the strikes are not all that good, but I usually find something 60 to 90 minutes away from expiration. I usually try to find a price around 25 to 35 dollars. I have shared this strategy in the pit and p3 trading rooms, but I have been asked by a couple of people to post here in the forum. This is my first attempt at doing this so I hope the charts from today display.

2014-05-16_Silver - Donaldavid’s library http://screencast.com/t/l3AhuWoc]2014-05-16_Gold - Donaldavid’s library & [url=http://screencast.com/t/giMvMaWLpEIA[/url]

#2

Nice Job! you have been doing this for months? What is your success rate? What is your average risk and profit per trade? Do you have any more specific rules for your system? Do you enter at a specific time? Noticed any patterns in terms of ranging days/hours? Tell us more.

The second chart I did not see your second entry for a butterfly on Silver. looks like a deep ITM trade on one side?

Thanks for sharing! :slight_smile:

#3

Excellent.

Are you defining flat as lower volume between close to close etc…?

As you have to identify flat up front so based on this chart that would be my assumption.

Any certain times of day?

#4

I have been trading silver more than gold when ranging since 7/13. Going back through my trade journal I would say my success rate is 80+%, they are high risk trades in as that I mostly find strikes that cost $75 - $85 as they are deep ITM, but occasionally find better prices. I try to get out @ 95 or 5 but sometimes I am able to let them expire when they trend in my favor as you see the silver trade did. I start looking at the charts around 9:30am and look for expirations between 11:00am and 1:00pm. If it is ranging nicely I usually get in about an hour to an hour and a half before expiration to get the better strikes and prices. I now use the close to close range boxes as a guide and look for lower volume, I think that has improved my success ratio of late. I honestly trade BF’s less than directional trades, but if it is flat as a pancake I will go for the BF as you see on the GC chart. They seem to range more after 10:00am, but I have not noticed any daily patterns. I traded GC & SI every day this past week, but some weeks there is nothing because of volatility. I might also mention that I keep a pretty close watch on these trades.

#5

Here’s today’s trade 2014-05-20_1301 Silver - Donaldavid’s library