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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, we present two strategies from our portfolio that trade in the energy futures market.
From September 2021 to September 2023, these strategies have generated an impressive profit of $83,000.
Both strategies were developed in 2018 and have been out of sample for several years.
One strategy trades the RBOB Gasoline Futures, while the other one trades the Heating Oil Futures market.
Want to learn more?
Then don't miss this video! By watching it you'll learn:
-How the two strategies work
-All the details about their performance
Enjoy! 😎
Two High-Performing Strategies on Energy Futures
Hello, and welcome back. As usual, today we will evaluate the strategies in our portfolio that have performed the best over the last period.
One of the coaches at Unger Academy here, and in this new video, we will look at two strategies that have performed very well recently in the energy sector.
The first strategy is on Heating Oil futures, while the second one works on RBOB Gasoline futures.
In this MultiCharts workspace, which contains all the strategies from Andrea Unger's database related to Heating Oil and RBOB Gasoline markets, I'd like to show you two strategies that have performed particularly well in these two markets recently.
The Heating Oil Strategy (Trend Following)
The first strategy, which works on Heating Oil futures, is based on a trend-following approach and keeps the positions open beyond the end of the session, so it's a so-called multiday strategy.
This is the equity line produced by this strategy, which has been out of sample from this point here, namely 2018,
and as you can see, in the post-development period, it continued to follow the trend recorded in the valuation period.
The system's average trade is pretty remarkable: it reaches and even exceeds $500, all in 453 trades from 2010 to date.
That is undoubtedly a full-fledged average trade. On the other hand, the statistical sample is not that large. Still, we can say that about forty trades per year is quite an acceptable value for this market, especially considering that this is a multiday strategy, that is to say, it keeps positions open for several days.
If we look at the annual results, we see that 2023 started well with a profit of more than $27,000, but in general, excellent gains were achieved in all years after the development date, especially between 2020 and 2023.
The strategy has made two trades in recent weeks, both of which were bullish.
The first trade closed with an excellent profit of $5,373 and was kept open for 2 days.
On the other hand, things didn't go so well for the other trade. Although it had started on the right foot, because we can see that the market followed the trend for some time, sadly, at a certain point it turned around, and after four days, the strategy hit the stop loss value.
The RBOB Gasoline Strategy (Trend Following)
But let's move on to the second strategy I want to show you today, which works on the RBOB Gasoline market.
As you know, Heating Oil, RBOB Gasoline and Crude Oil are all part of the highly correlated energy futures sector.
This strategy is also based on a trend-following approach, but the positions are closed after a few hours.
This strategy has also been out of sample since 2018, and as you can see, this strategy was able to make outstanding profits even in the post-development period.
In this case, the system's average trade is less than the previous strategy.
This is because, as mentioned earlier, the strategy closes trades after a limited number of bars.
You can see that the strategy holds the positions open for an average of 11 bars.
And since we are working with 60-minute bars, this means that the strategy closes its positions at most after 11-12 hours.
The average trade is $170, but this time, with a higher number of trades and a profitability of over 50%.
This strategy has also performed very well in the out-of-sample period, except for 2019, which was a particularly unfortunate year for this strategy. Still, you can see that this strategy has very positive results in the following years, especially in 2023.
Let's look at some of the trades that the strategy closed. Here they are.
This strategy opens both long and short trades.
In this case, we can see a long trade that was opened and then closed after a few hours with a $800 gain.
And then here we have a short trade that was opened immediately after the long position and was closed in a slight loss of $136.
Then, unfortunately, we also hit a stop loss, which in this case was a very unfortunate thing because as you can see... Let’s widen this a little bit...
The strategy after entering... Unfortunately, the market practically immediately retraced.
On this day, some economic data, such as data about oil stocks, were probably released, which can influence the market and then the energy sector.
Then the market sprang up again, and unfortunately, our strategy had closed the trade near the bar lows. To avoid this loss, it would have been enough to have a slightly higher Stop Loss, but we know that stop losses are also part of the game.
Then, we see a short trade on the following day, which closed with a profit of over $1,500.
Conclusion: Total Profit and Trading Tips
Altogether, in the last two years, these two strategies have managed to take home a very good profit. The first one made $34,000.
We see it here at this point, from September 19, '21, to the present day, the date of the last trade, the August 28 trade.
While the second strategy took home about $49,000 in the same time period.
For a combined total of the two strategies of $83,000.
The energy futures sector is undoubtedly exciting and includes, as mentioned, Heating Oil, Crude Oil, and RBOB Gasoline.
And so, I also invite you to try to develop trading strategies like those shown in the video today to take advantage of these markets' volatility.
Thanks for watching and I will see you very soon in our next video! Bye bye for now!
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.
