Copper Futures Trading: 2 Effective Strategies (Trend-Following + Reversal)

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The CME-listed Copper future (code HG) is characterized by high liquidity and excellent versatility that allows it to be traded with trend-following, mean-reverting and bias logics.

In this video, we’ll show you two strategies in our portfolio that are producing excellent performance:

- a trend following strategy based on the Channel Breakout

- and a reversal strategy developed in 2018 that features different types of exits

Watch the video now to learn more about how they are structured and their real performance over the last period!

Enjoy 😎


Hey everyone! One of the coaches at the Unger Academy here, and welcome back to our usual chat about our portfolio strategies that have performed the best in the last period.

Okay, so this week we want to talk to you about Copper futures. This is a very liquid commodity, and is one of the most important commodities in general. More in detail, this market responds well to different types of logic, from trend following to mean reverting and even bias.

Today we’re going to be looking at two types of strategies. One is trend following, which is the one that we see below. This strategy will enter at the break of a Channel Breakout, where a breakout is formed by an upper channel and a lower channel.

To determine the entries we'll use 16 periods, so we're going to calculate the highest highs of the last 16 5-minute bars, and the lowest lows of the last 16 5-minute bars. At the upward or downward crossing, we'll enter long or short, respectively.

This strategy has proven to produce some excellent results. Here we can see the data uploaded starting from 2008, the start date of our backtest, until 2022, so to date.

And specifically, I’d like to highlight how this system, which was developed more or less in these years here, sometime in 2017, has managed to produce some very good results after it was developed.

As I mentioned earlier, not only do trend-following strategies manage to work properly in this market, but indeed, reversal strategies can certainly offer excellent returns on this market as well.

This is the case with the strategy that you see here now, whose entry trigger is based on the highs and lows of three days before. So, if today's low breaks the low of three days ago, then we'll enter long. And vice versa, when today's high breaks the high of three days ago, we'll enter short.

This strategy has also proven to work over time, and well. It was developed in 2018, so we could say in this period here. It saw a period of laterality that lasted more or less a year and a half. After that, it resumed working close to the trend seen in sample.

What’s also special about this strategy is that it has different types of exits. Specifically, after two days in which the strategy will be in the market, we'll check the strategy's current profit and, if it reaches at least $400, we'll close the trades at the end of the day.

There are also other conditions whereby if at the end of the first trading day the open profit is less than $600, so in this case, if after one day the strategy is already losing, we'll directly close our intraday positions.

The last exit is on Friday, so if it's Friday or we've been in position for at least three days already, then without any additional check on the open position profit, we'll still close our trades.

These two strategies as you've seen have worked well in out-of-sample. So guys, go and give it a try too!

And if you're interested in the world of systematic trading we'll leave a very useful link in the description of this video for you, from which you can watch a free presentation by Andrea Unger, go and get our best-selling book covering only the shipping costs, or even book a free call with a member of our team.

If you liked the video, be sure to leave a Like, subscribe to our channel and click on the bell so that you can stay updated on the release of all our new content. You won't regret it!

And with that, I will see you soon in our next video! Bye-bye for now!

Need More Help? Book Your FREE Strategy Session With Our Team Today!

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.

Andrea Unger

Andrea Unger

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.