Strategy of the Month (January 2026): A Reversal Strategy on the Gold Futures Takes the Win

In this article, we will review the results of our “Strategy of the Month” competition for January 2026, focusing on the gold trading strategy that won the competition and on another strategy worth analyzing in depth.

We will provide practical trading insights by analyzing the core logic behind both strategies, the markets they operate in, and, of course, their performance results.

We would like to remind you that the “Strategy of the Month” competition is a contest reserved exclusively for Unger Academy® students and rewards the best strategy developed using the Unger Method™. By submitting their strategy, each student can participate every month and compete for a 1,000 euro Amazon gift card.

In addition, if you would like to obtain the source code of the winning strategies, you can join the Unger Strategy Club, one of the exclusive services offered by our Academy. This service allows you to access the open-source code of this month’s winning strategy, along with all previous winners. It also gives you access to a monthly live advanced training Masterclass and a monthly video with practical insights, where we explain the main rules of the strategies included in our portfolio.

But that is not all. By joining the Unger Strategy Club VIP, in addition to all the benefits mentioned above, you will also receive exclusive access to the open-source code of all contest strategies that have been approved by Unger Academy coaches.

Let’s now review the best strategies submitted in January, starting with a notable strategy that did not win, and then moving on to the winning one.

Trend Following Trading Strategy on Coffee (KC)

Among the strategies submitted this month that did not win the prize, we selected Alessio’s strategy, which still deserves recognition.

This is a Trend Following strategy on Coffee futures (KC) using a 15-minute timeframe. It uses the previous day’s highs or lows as entry triggers for long and short positions, respectively.

The strategy also uses a trading window to limit the number of trades, along with specific price patterns. Positions are closed after a maximum of approximately seven sessions if stop loss, take profit, or trailing stop levels – all active in this strategy – are not triggered earlier.

This is a very simple yet effective trading strategy that aligns well with the Trend Following nature of this underlying asset. Below are the main performance metrics based on data from January 1, 2010, through today. The strategy shows solid performance across the entire historical period, with only one losing year, 2013, and excellent results especially over the past year and the beginning of the new one.

 

Strategy of the Month – January 2026: Mean Reverting Strategy on Gold Futures (GC)

Let’s now move on to the winning strategy, developed by Matteo, whom we congratulate for winning the €1,000 Amazon gift card.

This is a Mean Reverting strategy on Gold futures (GC) using a 30-minute timeframe. It uses Keltner Channels to identify extreme price levels where reversal entry points can occur – essentially a type of false breakout based on the indicator’s bands. The strategy also incorporates a very effective time window, particularly on the short side, which is typically more challenging to manage during the development phase on this underlying asset.

Stop loss and take profit are calculated as fixed monetary values, approximately $3,000 and $6,000 respectively – relatively wide parameters but consistent with recent market conditions.

This strategy is not overly complex but proves to be highly effective. Below are the main performance metrics. In particular, we highlight the excellent net profit to drawdown ratio (17.03) and a very strong average trade value ($377), which produce a consistently smooth equity curve over time, with a sharp rise in the most recent phase, coinciding with one of the most extended bullish rallies in gold history.

 

Conclusions

Congratulations again to Matteo, who wins this month’s €1,000 Amazon gift card, confirming the strength and quality of his strategy.

We hope this article has provided useful insights and inspiration!

Remember, if you would like to obtain the source code of the winning strategy and the best competition participants, you can subscribe to the Unger Strategy Club. You can review the service details directly at: www.ungerclub.com.

That concludes this month’s feature. Join us next month for more innovative trading strategies and inspiration!

Curious about our “Strategy of the Month” competition? This exciting monthly competition is open exclusively to Unger Academy students and rewards the best strategy developed using the Unger Method with a €1,000 Amazon gift card. Interested? Click here to learn more!

 

Want to see the champions from previous months? Click here to check them out!