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Silver Trade Analysis Using the Base Trend (BT) Trading Strategy – September 28, 2023

Silver, denoted by the symbol Ag and atomic number 47, stands as an epitome of luster and versatility. As one of the soft, white transition metals, its phenomenal electrical conductivity, impressive thermal capacity, and unmatched reflectivity distinguish it from other elements. The market dynamics surrounding this metal, therefore, demand our meticulous attention.

On September 28, 2023, I took the decisive step of initiating a sell trade on Silver, positioned at 22.502. My reliance on the Base Trend (BT) Trading Strategy wasn’t coincidental but stemmed from its proven robustness in market analysis. The ATR Adaptive trailing stop played a pivotal role, calibrated at 12 times the M60 average true range with a set period of 40. My aspirations for this trade were anchored around a reward to risk ratio of 3:1, nudging the projected exit to 19.107. As of the present moment, the silver market shows a price of 22.46, while our ATR adaptive trailing stop gracefully oscillates at 23.56.

The fundamental question that might echo in the minds of many: Why did we accept this sell signal for Silver?

The anatomy of our sell signal rests upon specific parameters:

  1. Our EMA Zones, color-coordinated for clarity, portrayed a Bearish Market Structure.
  2. Global HAS candles, an indispensable tool, transmuted into a Red hue.
  3. The DAATS, our vigilant sentinel, positioned itself dominantly above the candles.
  4. Time, in its essence on the M60, M240, and M1440 bars, mirrored the color Red.
  5. A significant shift was observed in the Global I-Trend as its Green Line descended below its Red counterpart.
  6. The Global ADX audaciously crossed the 20 threshold.
  7. Our trustworthy GMACD Signal, coupled with the Main and Major Trend Indicator, unanimously echoed a Downward Trend narrative.

The sequence following the alignment of these conditions is automated to perfection. The Global Automated Trading System (GATS) swiftly places the trade. Maintaining our ethos of risk management, we’ve confined the Default Percentage Risk Per Trade to 2%. The Adaptive ATR Trailing Stop, synced to 12 times the M60 Average True Range, gets activated, ensuring our trade is safeguarded against undue volatility. Moreover, in our pursuit to amplify the yield, the Global Profit Target is meticulously sculpted with a Reward-to-Risk Ratio of 3:1.

For those intrigued by our EMA Zones, they serve as the backbone of our strategy:

  • The Momentum Zone gleams in Lime Green, encompassing EMA 1 to EMA 8.
  • The Acceleration Zone manifests in Medium Sea Green, ranging from EMA 9 to EMA 15.
  • The subsequent Transition and Value Zones are painted in shades of Pale Green and Light Gray respectively.
  • As we advance, the Correction Zone emerges in Light Coral, followed by the Trend Reassessment Zone in Salmon.
  • Finally, the Long-term Trend Zone stands resolute in Brick Red.

Our GMACD settings, vital to our operations, are dialed into Fast Length (6), Slow Length (9), and Signal Length (3).

In reflection, trading Silver, with its myriad of factors and inherent volatility, demands a blend of strategy, foresight, and precision. The Base Trend (BT) Trading Strategy is not just a tool; it’s our compass, guiding us through the labyrinth of financial intricacies. Today, as I review this trade, my confidence in our chosen path only solidifies further.

About the Author:

Dr. Glen Brown is an eminent figure in the finance and accounting realm, boasting over a quarter-century of unrivaled expertise. As the driving force behind Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., he stands as a beacon of innovation, harmonizing accountancy, investments, trading, and technological prowess. With a Ph.D. in Investments and Finance, Dr. Brown is not only an academician but a practitioner, overseeing diverse roles as the Chief Financial Engineer, Head of Trading & Investments, Chief Data Scientist, and Senior Lecturer. At the core of his multifaceted journey is a profound philosophy: the quest for transformation and excellence in the intricate world of finance and investments. Under his visionary leadership, both institutions have etched their names in the annals of financial success.

Risk Disclaimer:

All investments involve risks, including the potential loss of principal. The use of trading strategies can lead to especially swift and substantial losses. Past performance is not indicative of future results. Prices can move rapidly, and losses may exceed the principal invested. Before investing, carefully consider your financial position and risk tolerance to determine if the proposed trading strategy is appropriate. Moreover, the information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of any security or financial instrument or service. Not all recommendations are necessarily suitable for all investors, and investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, and particular needs.