Strategy of the Month – February 2026: Trend Following Trading on Feeder Cattle Futures

An algorithmic futures trading strategy can effectively exploit trends that develop in markets often overlooked by retail traders. In this article we analyze an interesting example of trend following trading applied to Feeder Cattle futures, a livestock market traded on the CME that in recent years has shown very consistent directional movements.

We will take a closer look at the results of the February 2026 “Strategy of the Month” contest, reviewing some of the best trading systems developed by students using the Unger Method^TM.

In particular, we will analyze:

• the winning trend following trading strategy
• a second mean reversion trading strategy on Nasdaq futures
• the core trading logic behind these systems
• their historical performance results

This type of analysis can help traders better understand how to develop robust algorithmic trading strategies that are consistent with the structure and behavior of different markets.

As a reminder, the “Strategy of the Month” contest is reserved for Unger Academy® students and rewards the best strategy developed using the Unger Method™. Each month students can submit their own trading systems and compete for a 1,000-euro Amazon gift card.

If you would like to access the source code of the winning strategies, you can join the Unger Strategy Club, one of the exclusive services offered by our Academy. Members receive the open-source code of the strategy that wins each month, along with the code of past winning systems. In addition, members can attend a monthly live Masterclass dedicated to advanced trading education and access a monthly video where we present the core rules of the strategies currently included in our portfolio.

But that is not all. By joining the Unger Strategy Club VIP, you will also gain exclusive access to the open-source code of all the strategies submitted to the contest that have been approved by Unger Academy coaches.

Now let us take a closer look at the best strategies submitted during the month of February.

 

Reversal Trading Strategy on Nasdaq Futures (@NQ)

Let us start with a very interesting strategy that, although it did not win the contest, stood out for its characteristics. It was developed by Devis, who certainly deserves our congratulations.

This is a mean reversion trading strategy on Nasdaq futures using a 15-minute time frame. The system is based on a classic setup that looks for price reversals at the previous session’s high and low levels.

The strategy also includes:

• a trading window that limits activity to specific hours of the session
• several patterns taken from our proprietary libraries
• a maximum trade duration defined by a specific number of bars

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  Despite its simplicity, the strategy shows solid performance. Below we report the main metrics based on historical data from 2010 to 2026. The results highlight:

  • a total net profit of more than 600,000 USD
  • a stable performance profile over time
  • particularly strong results during the first two months of 2026

  

  

   

  Strategy of the Month February 2026: Trend Following Trading on Feeder Cattle Futures (@FC)

  Let us now move on to the winning strategy, developed by Roberto, who has already won the contest in the past. Congratulations to him for earning the 1,000-euro Amazon gift card and once again demonstrating the quality of his work and system development.

  This is a trend following trading strategy on Feeder Cattle futures (@FC), a market that can be particularly interesting for traders who prefer strategies designed to capture ongoing trends.

  The strategy is built on a 15-minute time frame and is based on a breakout of the previous session high and low. As with the Nasdaq strategy discussed earlier, the entry levels are the same – the high and low of the previous trading day – but they are used in a completely different way.

  In reversal strategies, traders wait for price to reach these key levels in order to enter against the prevailing move, expecting a potential price reversal.

  In trend following strategies, instead, traders wait for price to break above or below these levels, aiming to capture the continuation of the existing trend.

  The system also includes some operational filters, along with traditional monetary stop loss and take profit levels, as well as a time-based exit once the position has been held for a predefined number of sessions.

   

  Performance of the Feeder Cattle Futures Trading Strategy

  This strategy is both effective and relatively simple, which, as we know, is an important requirement for building a robust trading system. In the following figures we show examples of trades generated by the strategy, the main performance metrics and the complete equity curve.

  One aspect worth highlighting is the remarkable consistency of the equity curve over time, along with the relatively limited drawdown (around 8,000 USD). This suggests that the strategy is well aligned with the structural behavior of this market.

  

  

  

  

Conclusions

Congratulations once again to Roberto, who wins the 1,000-euro Amazon gift card for this month’s contest.

We hope this article has been useful and has provided new trading insights. Analyzing strategies like the one developed on Feeder Cattle futures helps traders better understand how to design algorithmic trading systems capable of capturing trends in futures markets.

If your goal is to develop trading strategies like the ones presented here, you are in the right place. During the training program you will also have the opportunity to participate in our monthly contest reserved for Unger Academy students and compete for a 1,000-euro Amazon gift card.

If you would like to access the source code of the winning strategy and the best strategies submitted to the competition, you can join the Unger Strategy Club. You can review the service details directly at: www.ungerclub.com.

That concludes this month’s feature. Join us next month for more innovative trading strategies and inspiration!

Curious about our “Strategy of the Month” competition? This exciting monthly competition is open exclusively to Unger Academy students and rewards the best strategy developed using the Unger Method with a 1,000-euro Amazon gift card. Interested? Click here to learn more!

 

Want to see the champions from previous months? Click here to check them out!