What I Don't Trade...

What I (absolutely) Don’t Trade…

“Hey, why not trading gold!? It’s such a good investment in these times!”, or “How about crude oil, omg produced fantastic result!”. “Have you thought of natural gas!?”

I always agree with those statements, just I don’t know how to play it – so I won’t. The truth is: gold, oil or natural gas, or commodities in general, are not good candidates for my model. They are so volatile, that risk way outweigh potential benefits. Results using those etf are good, don’t get me wrong. However, my heart wouldn’t be able to survive and coolly look at wild swings. Deeply believe that those are better suited for either daily traders, or pure long-term trend followers (e.g. following 200 simple moving average, MACD (50,100,9) etc.). So commodities are not for me… Did back test, results are inferior to using previously mentioned etf’s, so I won’t use them. Just in case somebody asks :)...

And there will always be ideas how to improve model... I will keep it simple: Stock ETFs, Bond ETFs, Cash... See previous post for chosen in each category...