Friday, April 20, 2007

Recap: Platinum-gold spread trade

The platinum-gold spread trade that I discussed is once again profitable this year. If a trader entered the positions near the close on February 26 and exited the positions near the close on April 19, the profit would have been about $6,610 this time. However, I did made a calculation mistake when I plotted the historical profit graphs before. So here it is again:

The maximum draw-down experienced in the last 7 years is -$4,860. The average profit is $3,064, the maximum profit is $7,320 and the maxmium loss is -$540.