Gold-Silver Ratio Strategy

Relative-value approach for GC and SI futures: trade gold-silver ratio extremes beyond set thresholds or EMA crossovers of the ratio itself.

Published · Updated · Methodology: Technical Indicators

Part of: EMA Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Not specified
  • Markets: GC futures, SI futures, Gold, Silver

Indicators used

  • Gold-Silver Ratio (GSR)
  • EMA

Source video

Decoded from: Most Markets Don’t Trend. This Gold-Silver Ratio Strategy Still Trades by Ali Casey | StatOasis — watch the original

Key timestamps:

  • 0:00 - Introduction to the problem of trend following
  • 1:50 - Gold and Silver historical context
  • 3:40 - Introduction to the Gold-Silver Ratio (GSR) strategy
  • 4:00 - Strategy Version 1: GSR Levels
  • 4:20 - Strategy Version 2: GSR Moving Average Crossovers

Strategy overview

The gold-silver ratio (GSR) tracks how many ounces of silver one ounce of gold buys, turning two separate metals into a single relative-value series. What distinguishes this entry is that the strategy is introduced as the answer to a problem posed before the metals are ever mentioned: the source video opens not on gold, not on silver, but on the difficulty of trend following in markets that spend most of their time going nowhere. Only after that premise — and a stretch of historical context on the two metals — does the ratio appear as the proposed instrument.

The recorded timeline makes that ordering explicit. Roughly the first three and a half minutes are argument and history; the strategy is named at 3:40, and then splits almost immediately into two versions twenty seconds apart — one reading levels on the ratio, the other a moving-average crossover applied to it. That pairing is worth noting on its own, because the two versions come from different families: reading levels treats the ratio as something that stretches and returns, while a crossover on the ratio imports the same trend-detection machinery the opening chapter is skeptical of, only pointed at a spread instead of a price.

The video comes from Ali Casey's StatOasis, a channel whose name signals the statistical framing the presentation leans on. The record of it stops where the second version is introduced: no chart timeframe is stated, and there is no chapter for exits, stops or position sizing. This page therefore covers the concept and how the source frames it rather than a rule-by-rule reconstruction — the two versions are demonstrated in the video itself.

Topics

gold-silver ratio strategy · gc futures trading · si futures trading · gold trading strategy · silver trading strategy · technical indicators · mean reversion strategy · ema strategy · breakout strategy · trading strategy · tradingview strategy · pine script

Frequently asked questions

What is the gold-silver ratio in trading?

The gold-silver ratio expresses the price of gold relative to the price of silver as a single number. Traders follow it as a relative-value series — one line derived from two markets — rather than as a directional bet on either metal alone.

Why does this video connect the gold-silver ratio to trend following?

The video opens on the argument that most markets do not trend for long, and presents the ratio as an instrument that still offers something to trade under that condition. That is the source's framing of the idea, and the reason the strategy is introduced only after the problem has been laid out.

What are the two versions of the strategy discussed?

The video's own chapters separate them: a first version built around levels on the gold-silver ratio, and a second version built around moving-average crossovers applied to the ratio. The chapter list ends there, without a stated timeframe or exit section.

How can I evaluate a ratio-based strategy like this one?

Ratios can usually be plotted as a synthetic or custom symbol on charting platforms, which makes them testable on historical data before any capital is committed. Strategy Decoder catalogs strategies extracted from video sources like this one so you can find and assess them alongside similar approaches.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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