This is quite easily a 4R trade once it pans out favorably.
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Over time, the difference in performance, from silver over gold will produce a profit. The result of this trade, is the ratio chart you see above.
The trade won't work if you use a stop loss, and is a longer term trade.
Hope that clarifies it.
*For more on pair trading and gold/silver ratio trading: http://www.etf.com/sections/features-and-news/2308-how-to-trade-the-goldsilver-spread?nopaging=1