QAS MODEL PORTFOLIO PROGRAM ALERT
GOLD IGNORES US DOLLAR STRENGTH AND MAKES NEW ALL-TIME HIGH
QAS’s own graph reflects continuous strength in Gold price, low-risk regime (Risk Zone 2, Green) and a high relative score (RS Score) +1 against DJP benchmark (iPath Bloomberg Commodity Index ETN TR).
QAS Gold Long-Short Strategy is currently in Regime 1 (Aggressive, Leverage).
QAS Gold Long-Short Strategy continues to outperform all asset classes including Gold spot 2024YTD (As of Oct 18, 2024)*:
*QAS S-122 Gold Long/Short live track-record performance
This 4-Regime quantitative strategy continues to take advantage of the Gold price advance to a new all-time high in October 2024, as we see it’s happening over and over again this year.
In our pervious articles, we mentioned several times that Gold is definitely coming back as the strongest among all traditional “safe haven” instruments. Currently, certain geopolitical risks (Middle-East, Taiwan, Ukraine) in combination with upcoming US Elections, may have triggered above-average interest in Gold by global investors.
This demand in Gold is even more noticeable while we observe an aggressive rebound by the US Dollar Index. Gold price completely ignored this move, and currently both Gold and Dollar are moving in the same direction – upward. We are watching closely this positive correlation effect, and fully relying on the QAS algorithm to guide us when regimes will transition back to normal (negative correlation mode).
As part of our process in this quant strategy, we are also watching both SPY and Gold volatility indexes. Our algorithm has an automated “HVR” indicator (High Volatility Regime). It will override and mute the “leverage” signal when volatility exceeds threshold levels. This HVR indicator was triggered several times this year.
Our advanced quantitative method made it possible to recognize four specific regimes in Gold’s price fluctuations:
Regime 1 — Positive, Aggressive (+2x Leveraged exposure)
Regime 2 — Positive (+1x Beta exposure)
Regime 3 – Neutral, Negative Bias (Cash)
Regime 4 – Negative, Aggressive (-2x Leveraged exposure)
For more information, please visit www.qas-service.com
