Strategy Detail
Gold/Silver Ratio
A relative-value strategy that trades the spread behavior between gold and silver futures.
Median Net PnL
+$1,960
Mock spread results after transaction assumptions
Max Drawdown
-6.2%
Keeps risk moderate when the spread remains orderly
Recovery Factor
1.78
Helps show how quickly ratio dislocations normalized in the sample
What It Does
Gold/Silver Ratio watches the relationship between the two metals rather than treating them as isolated charts. When the ratio stretches away from its recent equilibrium and starts to mean-revert, the strategy positions for the spread to compress.
Because this is a relative-value idea, the setup quality depends heavily on macro context, liquidity, and how quickly the ratio can normalize after an overshoot.
Key Characteristics
Relative-value framing instead of single-contract momentum
Works best when spread behavior is orderly
Benefits from disciplined sizing and patient exits
Best In
Stable macro weeks with orderly metals rotation
Periods where the ratio extends far beyond its short-term range
Mean-reversion environments with contained realized volatility
Parameters
Lookback window
Z-score threshold
Exit threshold
Initial capital
Date range
Run Backtest
This page is designed to serve both public and authenticated users. In the integrated product, signed-in traders go directly into parameter configuration while guests are asked to sign in first.