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 >>Does using Bollinger Bands on currency futures produce good results?
Judging by the performance of these two strategies in our portfolio, it seems so!
These strategies exploit the mean-reverting characteristics of two very important currency futures: the British Pound and the Euro-Dollar (EuroFX).
Watch the video to discover:
- how the strategy on the British Pound future is structured
- how the strategy on the Euro-Dollar future is structured
- their real performance since 2021
Enjoy the video!
Hey everyone! One of the coaches of Unger Academy here and welcome back to our usual chat on the strategies in our portfolio that have performed the best recently.
Okay, so this week we’re going to be talking about two quite similar strategies that also work on two markets belonging to the same sector, although these markets are very different from one another. I'm talking about the British Pound Future and the Euro-Dollar Future. Both futures refer to currency pairs that are based on the US dollar, and both strategies are based on a reversal approach and use the Bollinger Bands.
So, basically, we'll wait for a bar to close above the lower Bollinger band in order to buy. And vice versa, we'll go short in reversal mode if the close exceeds the higher band. In other words, when the market goes up we'll try to open short trades and vice versa, when the market goes down we'll try to open long trades.
These two markets are characterized by a fairly strong reversal nature. This is why strategies like the ones I'm showing in this video can work pretty well on them, so I invite you to give them a try.
Now let's focus on the results of these strategies. First of all, let's take a look at the strategy on the British Pound future, which, as I said before, was built using the Bollinger Bands. Since it's an intraday strategy it'll close all the open positions by the end of the session. We've obviously also set a stop loss and a take profit. Remember that this future has a Big Point Value that is half that of the Euro-Dollar future. So while the Big Point Value of the Euro-Dollar is 125,000, that of the British Pound is 62,500, which means that the British Pound future is slightly more scalable than the Euro-Dollar future.
This is the report of the strategy. As you can see, it has worked very well over the last year, year and a half, both on the long and on the short side. You see that at the beginning, the short side struggled a little bit but then it also performed very well.
Now let's take a look at the other strategy, the one we built for the Euro-Dollar future. As we've already mentioned, this system is quite similar to the other one. In this case, too, we wait for a retracement to open our positions. For example in this case, or in this other case for the short side. So we wait for a retracement towards the high to go short and a retracement towards the low to go long. So this is also a reversal strategy but different from the previous one, it is a multiday system, which means that the open trades are not closed at the end of the session.
Let's go take look at the report of the strategy. This is the equity line of the short trades only. And this is that of the long trades, which suffered a little bit but thanks to one of the last trades managed to again reach the highs.
And here is the overall equity line of the strategy, more or less from the beginning of 2021. And as you can see, the results have certainly been more than satisfactory, especially if we consider that these strategies work on the currency market, which is a market that has been quite difficult to trade in recent years.
Anyway, as you can see, applying a reversal strategy on the currency futures may turn out to be a pretty good idea.
Below this video you’ll find a very useful link that will take you to a page from where you can access a completely free webinar with Andrea Unger, the 4-time world champion trader, or buy our best-selling book "The Unger Method" covering only the shipping costs, or book a free call with a member of our team.
Finally, please remember to subscribe to our channel in order to stay updated on the release of all our new videos.
And with that, will see you soon! 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.
