Gold Trading Boot Camp: How to Master the Basics and Become a Successful Commodities Investor

CHAPTER 34

The “TIMID” Matrix

The initials TIMID stand for Trend Identification and Momentum Indicator Derivative. TIMID is just that, an indicator that is derived from a combination of calculations that are applied to trend index figures which are then tweaked further by using momentum indicators. From the TIMID matrix I then derive my Power Rankings, which are published within my research products.

The result of this proprietary process is a derivative indicator that can be defined for any and all global capital markets instruments.

Moreover, I have created the TIMID indicator so that the readings fall into certain ranges that allow for comparison between instruments, in terms of where each trend might be.

This opens up a wide range of uses for the TIMID indicators. Not only can I determine whether the market is statistically ripe for the application of trend-following methodologies, or whether a countertrend stance is desirable, but I can also compare individual instruments within the same sector, to determine which one offers the best odds of sustaining a successful trend.

Additionally, my indicators can be applied to any and all spreads in a study of mutual funds, exchange-traded funds, and individual stocks, too.

While I will not divulge the exact algorithms that I use to calculate my TIMID indicators, I am publishing my Power Rankings as applied to the entire universe of investment vehicles, particularly in a top-down global investment portfolio.

Since early 2006, I have ...