Hey everyone, Happy New Year! Welcome back to our usual chat about the strategies in our portfolio that have performed the best over the past period.
One of the coaches at the Unger Academy, and in this very first video of the year 2023, we’re going to take look at two strategies that have performed well in the DAX market.
Alright, so in this first video of the year, as mentioned, we’re going to be talking about the DAX.
As you can see, here’s a strategy that’s a sort of mix between a bias and a trend-following strategy, because it really only enters in one session of the week, which is Friday.
This is a strategy that, at the opening of the Friday session, goes to check whether between Monday and Thursday, so during the rest of the week, the market went up or down.
In this case, for example, we see that the market went up between Monday and Thursday, so on Friday the strategy opened a long position.
So, basically, if the week is positive, we will buy on Friday.
On the other hand, if the week was negative, like this last trade on December 16, the strategy will enter short.
So, if the market has gone down, we’ll open a short position.
Here we’ve uploaded the results of the last 365 days.
We see good profits in 2022, which ended with a respectable average trade, especially considering that this is an intraday strategy, 900€.
If we look at the equity line of the system, we see that there were definitely some periods that were not too lucky.
This is a strategy that actually doesn’t work much because there’s a limit of only one trade per week, either long or short.
And as a result, the volatility can also last for months in particular phases.
But then we see that especially in the last — in the last part, starting in July, so in the summer months, and also in the winter months, the strategy was able to return to the new equity highs.
So, it’s certainly a slightly more specific strategy that could fit nicely into a portfolio of more articulated strategies or of strategies that enter at some sort of predetermined levels, such as, for example, the highs and lows of the previous day.
So let’s move on to the second strategy that I want to show you today.
Different from the previous one, this is a pure trend-following strategy. More in detail, we’ll wait for two averages, one slower and one faster, to cross and then enter the market.
So, when the crossing occurs from the top to the bottom, we’ll enter short.
While on the other hand, when the crossing occurs from the bottom to the top, we’ll buy at market.
So this is a classic trigger based on the moving averages.
This strategy will also have a stop loss and a take profit.
And in this case, the stop loss and take profit are higher than the previous strategy.
This is because this is a multiday strategy where the positions remain open beyond the end of the session.
So the stop loss is 200 points, while the profit target is exactly twice that, so 400 points.
The strategy also has a breakeven point that is triggered when a position profit of more than 250 points is reached.
This strategy has also performed very well over the past 365 days.
We see an equity line that is certainly more pleasant than the previous one and has also gained more, but let’s just keep in mind that this is a multiday strategy, which therefore has the opportunity to make much larger average trades by giving more room for its trades.
Indeed, we see 2022 as a fantastic year for this strategy.
It has managed to reach almost an average trade of almost €2,000!
Also consider that these are results without commissions, so these numbers are even more sensational, we could say.
Well we hope you enjoyed this video.
If there is anyone among you who’s interested in the world of systematic trading, I recommend that you click on the link in the description of this video. From there, you can watch a free presentation by Andrea Unger, get our best-selling book called "The Unger Method" by just covering the shipping costs, or even book a free call with a member of our team.
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And with that, we will see you soon again next time! Bye bye for now!
