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BOOK YOUR FREE STRATEGY SESSION NOW >>Unlike other market approaches, the Unger MethodTM is a scientific trading method that can be easily taught, learned, and reproduced.
The proof is in the results achieved by members of the Unger Academy, who can use this method to develop strategies that are as robust and effective as our own.
The proof is in this video, where we present some of the best strategies developed by Unger Academy members. They are all based on simple rules and have stood the test of time.
By watching the video, you'll discover:
Six effective strategies to draw inspiration from for your trading (trend-following, mean-reverting and bias approaches + US 30-Year Bond, Copper, Crude Oil, Gold, Live Cattle)
An intuitive explanation of the rules on which each strategy is based
Their real performance
Enjoy! 😎
A workspace with our students' strategies
Hey everyone and welcome to this brand new video! Today we're going to be looking at some of the best strategies developed by our students at Unger Academy.
These strategies were first analyzed and then corrected by us, the coaches of the academy. And the best ones, those that proved resilient over time, were included in this workspace, which is, of course, available in an extended form to all our students.
Today we’re going to be looking at some of these strategies and will explain the rules in broad terms so you can see how intuitive it is to develop automated strategies using the Unger Method.
So, let's start by analyzing our workspace. We can see different instruments with obviously different strategies inside.
In the upper left corner, we have the US, which corresponds to the 30-year bond futures. Then we have the HG, that is to say Copper, which is a commodity. Then we have another commodity that certainly needs no introduction, Crude Oil. Then another commodity that needs no introduction either, Gold, with two strategies that we'll look into in a moment. And finally, we have Live Cattle, which, as we know, is one of the futures of the meat sector.
Strategy on Treasury Bond
So let's go and start with the first strategy. This is a mean-reverting strategy and interestingly, the peculiarity of this system is not so much in the entries as in the exits.
As for entries, they may vary between one or two contracts. And the quantity chosen depends on whether the previous day was negative or positive.
For example, we see that in this case, the previous day was positive and so here we’ll enter with a single contract.
On the other hand, in the case of a decline, we'll enter with two contracts the next day. This is because these futures, and bonds more in general, respond very well to the mean-reverting approach.
So this strategy was developed by one of our students in 2018. So let's see… well, the development date is more or less here.
And as you can see, also the out-of-sample performance is pretty good, especially if we compare it with the Buy and Hold of this underlying, which went through some very difficult years. I mean, look at those declines. However, although this strategy only enters on uptrends, it still managed to make some excellent gains.
This strategy closes its positions after 10 bars at the latest. Since it is a 60-minute time frame, the position can remain open for a maximum of 10 hours.
Strategy on Copper
Let's turn to another strategy. This is a mean-reverting strategy on Copper and uses Bollinger Bands.
It was developed on a 30-minute time frame. And again, we have a strategy that stays in the market for a few hours because we have exit conditions at certain times of the day.
And here is also the report on this strategy. We can see that at the beginning of the out-of-sample period the equity line had suffered a little bit. However, in the last year and a half it has been able to recover and achieve much better performance.
Actually, the mean-reverting logic is one of the strongest in this market, so I definitely recommend that you go and try it out.
Strategy on Crude Oil
Let's move on to the next strategy, the one on Crude Oil. As I told you, this strategy, and in general this market, responds well to trend-following strategies, which is the opposite of the Copper strategy that we saw just a little bit earlier.
Specifically, this strategy uses information provided by an indicator called Aroon.
Over the out-of-sample years this strategy has been able to hold up very well. And it kept in line with its past performance even in the last six months, which we know have been characterized by higher volatility due to the war in Ukraine and events regarding energy commodities, mainly Natural Gas and Crude Oil.
Strategy on Gold
But let's move on to the next strategy. This one works on the Gold future. It was also developed on a 30-minute time frame, like the previous one, but in this case we change logic again.
We've moved from mean reverting to trend following, and now we're looking at a bias strategy. So, this strategy will enter at certain times within the session and on certain days of the week.
Especially in the second part of the day, of the session, we'll make long trades. While, on the other hand, in the first part of the session, we'll make short trades.
This strategy has undoubtedly performed very well over time and continues to do so, albeit with a somewhat flatter slope of the curve compared to the early backtest years. Nevertheless, you can see that the strategy is close to equity peaks.
These are all replicable strategies and all our students can use them.
Another Strategy on Gold
Let's turn to the second strategy for Gold. As I mentioned earlier, it is similar to the previous one. So, it's a bias strategy, and this time is based on a 60-minute time frame.
In this case, it makes no difference since the entries occur in a somewhat similar way. And also in this case, we'll make the long trades in the second part of the day and instead the short trades in the first part.
This strategy has held up very well in the out-of-sample period, and look at what a nice equity line we can get in this market.
Strategy on Live Cattle
Now for the last strategy that I want to show you today. It’s a strategy for Live Cattle, so the meat sector.
This is a mean-reverting strategy that enters after a false breakout on the previous day's highs and lows.
Specifically, long entries will occur the moment the market breaks through the previous day's low and then, if the market goes above that low again, we will buy.
Vice versa for the short, where we'll wait for a false breakout. So, for example, in this case, here is the high of the previous day.
The market made a false breakout because it broke out and then recovered, it returned below the previous day's high and at that point, the strategy opened a short position.
This system has also proven to be very successful. In recent years, this type of logic has produced excellent results in this market, so please I recommend that you go and try it as well.
These strategies have all been programmed and developed using the Unger Method, which is a trading method that can be learned very easily even if you have no experience in programming. Trust me!
If anyone among you is interested in the world of systematic trading, I recommend that you go and click on the link in the description of this video. From there, you can go and watch a free presentation by Andrea Unger or get our best-selling book by only paying the shipping costs, or even book a free strategic consultation with a member of our team.
If you liked this video, please be sure to leave us a Like, subscribe to our channel, and click on the notification bell to stay updated on the release of all our new content.
And that's it for today! Thanks so much for watching, and I will see you soon in our next video, bye-bye!
We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.
BOOK YOUR FREE STRATEGY SESSION NOW >>Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.
I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems.
In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.
Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.
Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.