Gold Stocks Trading Model: The pattern recognition model I use has been very volatile, that is why I would not trade more than 10% of my account with this model. But it has been very profitable in the past. I sometimes buy call options when the model says to go long, and put options when it says to be short. I use the XAU (Philadelphia Gold and Silver Stock Index) and the GDX (Market Vectors Gold Miners ETF). If one does not desire to use options, one can buy the GDX or sell it short, since it is an ETF, and trades like a stock.

This model trades fairly frequently, and again, all trades are executed on the close. And I know on the close what the signal will be for the next day's close. Recently, it bought on the close 3/11, with the GDX at 31.34 and exited that position (liquidated to cash) on the close Friday, 3/13 with the GDX at 33.08. It will go long again on the close Monday, 3/16.