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2025-08-13 20:01
IndustryGold Safe-Haven Hedging PortfolioHedge Structure:
Gold Safe-Haven Hedging Portfolio
Hedge Structure: When a geopolitical crisis erupts (such as the 2023 Israeli-Palestinian conflict), go long XAU/USD and short AUD/JPY. Gold's safe-haven properties are negatively correlated with the risky currencies of Australia and Japan at -0.89. A 1:2 position ratio (1 contract of gold for 2 contracts of AUD/JPY) is used. Close the position when the VIX falls below 20. In the October 2023 conflict scenario, the portfolio generated a 9.2% profit, while the single-sided gold trade only yielded a 5.1% profit.#SharingTradingMistakesAndGrowth#BrokerEvaluation
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Gold Safe-Haven Hedging PortfolioHedge Structure:
Gold Safe-Haven Hedging Portfolio
Hedge Structure: When a geopolitical crisis erupts (such as the 2023 Israeli-Palestinian conflict), go long XAU/USD and short AUD/JPY. Gold's safe-haven properties are negatively correlated with the risky currencies of Australia and Japan at -0.89. A 1:2 position ratio (1 contract of gold for 2 contracts of AUD/JPY) is used. Close the position when the VIX falls below 20. In the October 2023 conflict scenario, the portfolio generated a 9.2% profit, while the single-sided gold trade only yielded a 5.1% profit.#SharingTradingMistakesAndGrowth#BrokerEvaluation
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