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 >>In this video, we discuss the winning strategy of our September 2023 Strategy of the Month contest and another strategy that we found particularly interesting among those submitted by participants:
-Reversal intraday on the Gold Futures (the winner of the contest!)
-Trend following multiday on the Lean Hogs Futures
The strategy achieves an excellent average trade of $239, enough to cover slippage and commission costs.
The special feature of this strategy is the volatility filter that allows for more efficient trades.
The Strategy of the Month contest is reserved for Unger Academy® students. It rewards the participant who developed the best strategy using the Unger Method™ with a €1,000 Amazon gift card. To learn more about the contest and how to enter, click here.
If you are a One Year Target or AlgoTrader Fast student, we remind you that you can get the codes of the winning strategies of the contest by joining the Unger Strategy Club. click here to learn more!
Whether you are looking for insights to diversify your portfolio or want to get an idea of the strategies we teach at Unger Academy®, don't miss this video!
Enjoy! 😉
What is the Strategy of the Month contest
Hello and welcome to this brand-new video. Today, we're going to be looking in detail at the results of our Strategy of the Month contest for September.
We're going to discover the winning strategy and another noteworthy strategy among all the ones you sent us.
I must say that even this month, the choice was difficult because you sent us so many strategies developed very well, a sign that the Unger Method works and is easily transferable.
As always, we’ll also give you trading insights by going over the basic logic of the strategies and observing their performance together.
I want to remind you that the Strategy of the Month contest is reserved for Academy students, thanks to which each month, they can submit their own strategy and compete for a chance to win a €1,000 Amazon voucher.
In addition, I want to share some good news with you: I’m talking about the Unger Strategy Club. Some of you probably already know about it, it’s the most recent service available in our Academy.
The club offers access to a monthly live Masterclass where we’ll provide advanced training, gives the possibility to watch monthly videos with trading insights where we explain the basic rules of one of the strategies in our portfolio, and gives exclusive access to the open-source codes of the winning strategy of this contest, along with, of course, the database of all the strategies that have won in the past.
Alright, so let's start right away by reviewing the best strategies you sent us for the month of September and start with this strategy.
Multiday trend-following strategy on Lean Hogs Futures
Here you can see the equity line of the system applied to the Lean Hogs futures.
We selected this strategy because it is based on a trading idea that is definitely effective and is in line with the Unger Method.
The engine relies on the highs and lows registered in the first few hours of the session. Then, it uses these levels as an entry point in the event of a breakout, thus exploiting a trend-following logic that is typically suited to this type of underlying asset.
The time horizon is multiday to try to get an average trade sufficient to cope with trading costs, which in meat markets isn’t always so easy to achieve, the sessions being short and therefore challenging to trade intraday.
If you will, the only flaw in this strategy is that the author didn’t use specular patterns to filter the entries, which is usually not optimal for trading commodities since there is no good reason to expect different behavior in the up phases than in the down phases of the market.
Despite this, the results are outstanding, so we decided to show it to you anyway.
Let's look at a few trades in particular. Here, for example, we had a short trade that was opened after the first session hours, where precisely the high and low sessions were formed.
At the break of the low, in this case, we entered short at the next bar, and the trade was held open for a couple of days until it reached the profit target level.
New highs and lows had formed in the early hours of this day, so let's say these were the new levels to consider.
In fact, at the break of the low, again, we re-entered short, which, in this case, went wrong because the market rebounded at the end of the day.
There had also been this downward trend, so let's say this is something acceptable.
And a stop loss was also taken, which, as you can see, is of a reasonably small magnitude because, on this market, you can trade with reasonably tight stops without particular problems, which on other markets perhaps isn’t possible.
So, let's go and look at the performance report of this strategy. This is the equity curve, which is very regular on the long side and sufficiently stable on the short side.
Maybe except for this period, where we see a somewhat more pronounced drawdown.
At the trade level, we see that it trades quite a bit with a quite good average trade for this instrument. As we said, it isn’t easy to reach such levels. So, $160 for Lean Hogs is a very good value.
Let's also look at the annual performance, as you see consistently positive from 2010 to the present, with some years maybe a little bit more up and down, but still always with pretty good and consistent results.
There are about fifty trades a year, so we have to say it is an excellent strategy.
The WINNER: Reversal strategy on Gold Futures with volatility filter
Let’s now move on to the winning strategy of the contest for September, which was proposed by Giuseppe, whom we now congratulate!
As you can see, this is a strategy on Gold futures. It is based on a reversal approach and works on a 15-minute timeframe. It uses as entry levels the highs and lows of the previous session, increased (or decreased in the case of the low) by a few ticks.
Let's have a look at this short trade that later went in stop loss. The previous session reached a high at about this level, so our trigger level will be slightly higher.
If this bar's close is higher than the level and the next one closes below, we’ll enter short.
In this case, then we went in stop loss.
In this other case, the same thing happened. The high of the session before this one was at the level here. A few ticks above that is our trigger level.
The previous bar closed above the trigger level, and the next one closes below, thus triggering our short entry order. In this case, we went in profit target instead, so it was an excellent trade.
This is an intraday strategy where positions are closed at a set time near the end of the session. It has a stop loss and a take profit positioned at the correct levels for this instrument.
As always, we take a close look at all the strategies that we receive, especially those that look most promising, like this one.
And I must say that although this strategy may seem very similar to one that has won our contest in the past, this one has tweaks that make it a substantially different strategy, although it will obviously most likely correlate with the previous strategy.
Perhaps the main difference is using a volatility filter applied on a second set of data. You see it here, it’s a daily chart, so on 1440-minute candlesticks, which allows to filter the trades in a specific way.
Looking at the performance report very quickly, we see a beautiful rising equity almost at 45 degrees.
An excellent average trade for an intraday strategy, $240 or so, well distributed between long and short.
And definitely consistent annual results, excluding 2010, the first year of evaluation, but still excellent and consistent results over time, which is what you look for most in strategy development.
So, kudos again to Giuseppe for developing this system with a straightforward but, at the same time, very effective logic.
Conclusion
I hope you find this video helpful. And if your goal is to create trading strategies like the ones we’ve just seen, you are definitely in the right place.
While learning, you too can participate in this contest dedicated exclusively to Unger Academy students, winning a €1,000 Amazon voucher each month.
Finally, I want to remind you of the big news I mentioned at the beginning: the Unger Strategy Club. Have a look at all the contents of this service at ungerclub.com.
For any other information, I invite you to click the link in the description. From there, you can watch a free presentation by Andrea Unger, get a free copy of the best-selling book "The Unger Method" by covering only the shipping costs, and finally, book a call with a member of our team to get a free strategy consultation.
Thank you all for listening and see you soon with new trading insights and ideas!
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.
