First charts

Hi.

The first charts I'm showing are related to silver (SLV).

Daily

My trend follower had issued this week a new buy signal in the daily chart. Let me beggin to explain what all those lines mean.

The main area of the picture is the candlestck price chart of the SLV ETF. Then I have a green/red line and another blue/black one. These are the two lines for my trend follower system:

1. Green/Red line: my long term trend follower;
2. Blue/Black line: my short term trend follower.

The buy/sell signals shown are triggered only by the longer one, while the short term is pictured only as an auxiliar view.

In the top you can see the backtest results generated by my trend follower, as cold as it can be. I mean, there is no capital management, nor stop losses...anything....only buy/sell 100% of the current cash (it's only included the trading costs). Because this is a daily model, the buy/signals are programmed to be issued in the next day openning of the market, so they are actually based in the previous day close!


Weekly

The weekly chart is very interesting. Pay attention to the first week shown! This was almost right before the 2008 bear market start. This system generated the sell call in late March of 2008 and the very next buy call was only issued in the first week of February/2009! This is amazing, as in the weekly model, my trend follower has some kind of a stop loss management.

The weekly results for SLV are better than the daily ones. This is a nice catch, because it minimizes the trade operations frequency, providing better trade eficiencies! This is very important to traders like me that only use EOD data and only buy/sells when the market is sleeping :)

Finally, let me point out that the 6 january buy signal provided by the daily model is confirmed by the weekly chart. This is a very important check in order to reduce the risk associated with each trade call.

Another check I use to do is against the longer term stochastic oscillator (in this case the weekly one). As one can see, it is right now in the buy zone so, even if you only buy the SLV tomorrow, it should provide a nice profit oportunity.

Regards.