Trading Gold Index

Discussion in 'Commodity Futures' started by granville, Jan 3, 2006.

  1. Hi All,

    I'm working in Trade Station and developed a strategy that performs well against the "Handy & Harman" Gold Index. I'm new to gold and even after 30 minutes of googleing I can't determine:

    1. how this index is constructed nor
    2. how it relates to spot gold prices

    Is anyone familiar with this index?
  2. bonds


    Never heard of it... why dont u use one of the more common gold indices?
  3. That may be an option..given that TradeStation has the data (which it does for a few gold related futures/indecies). The results for the Handy & Harman index are hopeful and I've seen it quoted on other sites, but with no information on how it's constructed. Perhaps I can do a study on spot gold vs HH index in TS... I'll post the results here
  4. bonds


    are u trading gold stocks or the actual commodity?
  5. OK, the Handy & Harman Index varies from the spot market closing price by about 2-4% (in 2005)

    Some of this could be due to differences in the time of day that the spot market data was collected vs. the closing price of the HH index (spot might be London time, HH index might be NY time).
  6. If you are new to this sector, would recommend EXTREME caution.It is like no other.If you dont know how gold behaves throughout the year you could easilly be slapped senseless.There are many hidden variables such as the cartel, central bank selling,and worst of all ,market perception.
  7. yes, I am VERY new to gold and the only reason why I'm interested is because of a range-trading strategy that I developed trades against gold well (at least since 2000 to present). A concern is that it only made 7 trades during that time (could be curve fit).

    I think I might paper trade or just look on for a while and see if this all continues.. right now the model is short (and in a draw down).

    I would have to believe that gold trades well against other range-bound clearly does not trend well (now is an exception:)
  8. Bonds,
    I don't trade either right now. I'm currently in the process of searching for markets and trading systems that work well together. I could trade either, but what I think I'm looking for is spot or spot futures. The HH index seemed to be a good way to get extended historical data without having to string together futures contracts. (in tradestation)
  9. tomcole


    H&H is a refiner/gold products manufacturer and their prices are intended for smaller manufacturers who deal in things like gold wire, gold shot etc, so H&H prcing is not truly representative of a gold price where delivery point and product type are standardized.
  10. Thanks!
    #10     Jan 4, 2006