Google and Tesla Trading Strategies: New Equity Highs

In this article, we will analyze two Google and Tesla trading strategies based on clear, objective, and repeatable rules. Both strategies are currently at new equity highs.

Google and Tesla have long been two of the most prominent and widely followed companies in the US stock market, despite operating in very different industries.

Recently, both stocks have experienced periods of significant volatility, creating potentially interesting trading opportunities.

The first strategy looks for a continuation of bullish momentum in Google stock, while the second seeks to capitalize on a breakout following a volatility contraction in Tesla stock.

We will explore the entry and exit rules of both systems, their position management criteria, and the results they have achieved, with both equity curves recently reaching new highs.

👉 If you’re interested in Tesla stock trading, also read Andrea Unger’s Benzinga article: Why Tesla Is Ideal for Trend-Following Strategies And How To Build One For This Iconic Stock

Google Trading Strategy: Entering on Bullish Continuation

The first strategy trades Google stock exclusively on the long side, using a 15-minute timeframe. It looks for a continuation of the price move following a positive start to the trading day.

For the setup to become active, the daily open must be above the previous day’s close, while the current price must also be above the session open. Between 10:00 a.m. and 4:00 p.m., a buy stop order is then placed at the previous day’s high.

The trade is entered only if the price actually breaks above this level. Once a position has been opened, no additional entries are allowed until the following trading session.

Position size is not based on a fixed number of shares. Instead, it is calculated by dividing the capital allocated to the strategy by the stock’s current price. With an allocated capital of $10,000, for example, the system purchases enough shares to keep the exposure as close as possible to that amount on each trade.

This approach makes the results more comparable over time. If a fixed number of shares were used, the strategy’s dollar exposure would increase or decrease as Google’s stock price changed.

The stop loss and profit target are also calculated as percentages of the invested capital rather than as fixed dollar amounts per share. Once a position has been opened, the stop loss is set at 1% of the allocated capital, while the profit target is set at 3%.

The strategy also includes a dynamic exit set at the lowest low of the previous two trading sessions. As a result, the position may be closed before either the stop loss or profit target is reached if the bullish move begins to lose momentum.

Google Strategy Results: Equity Reaches New Highs

As shown in Figure 1, the equity curve follows an overall upward and relatively steady long-term trend. Although it includes several sideways periods and drawdowns, these are gradually recovered without undermining the curve’s overall structure.

One particularly encouraging feature is the final portion of the equity curve, where the strategy moves above its previous highs and reaches a new equity peak. This indicates that the system continued to generate profits during the most recent period, with no clear signs of performance deterioration.

Figure 2 shows that the strategy completed 768 trades, all of them long. This is consistent with the stock market’s historically bullish bias and allows the system to capitalize primarily on periods of strength in Google stock.

The percentage of profitable trades is relatively low at 36.46%. However, this result is consistent with the strategy’s structure, which accepts many small losses while waiting for larger bullish moves.

The average trade is approximately $32. While this is not a particularly high figure, it can be considered acceptable for a stock trading strategy with an exposure of $10,000.

Overall, the results point to a strategy with a low win rate, offset by average profits that are significantly larger than its average losses. The growth of the equity curve and its recent move to new highs are the system’s most noteworthy features.

Tesla Trading Strategy: Breakout Following a Volatility Contraction

The second strategy trades Tesla stock exclusively on the long side, using a 60-minute timeframe. It looks for a breakout following a period of contracting volatility.

To identify these conditions, the strategy compares the price ranges recorded over the previous 8 and 10 bars. When the shorter-term range is sufficiently narrow relative to the longer-term range, the system identifies a volatility contraction and records the highest high of the previous 8 bars as a resistance level.

During the bars that follow, the strategy enters a long position if the price closes above this level. The signal must occur within 9 bars of the contraction to avoid entering too long after the original setup.

The strategy also applies two filters. The first requires the price to be below the 100-period moving average, allowing the system to look for a potential rebound following a period of weakness. The second filter uses the daily timeframe and requires the True Range of the most recent session to be below its 7-period average. This means that entries are permitted only when daily volatility is relatively low.

As with the Google strategy, the number of shares purchased is calculated based on the capital allocated to the system. With an allocated capital of $10,000, the position size is determined by dividing this amount by Tesla’s current share price, thereby maintaining a comparable level of dollar exposure over time.

The stop loss and profit target are expressed as percentages of the allocated capital. The stop loss is set at 4.5%, while the profit target is set at 11%.

Finally, the strategy includes a time-based exit. If the position remains open for more than 5 days without reaching either the stop loss or the profit target, it is closed.

Tesla Strategy Results: 57.06% Win Rate and New Equity Highs

As shown in Figure 3, the Tesla strategy’s equity curve also follows an overall upward long-term trend. The curve alternates between periods of growth and more sideways phases, partly because of the system’s lower trading frequency, but it gradually recovers from the drawdowns it experiences.

The final portion of the equity curve is particularly encouraging. After recovering from its latest decline, the strategy moves above its previous highs and reaches a new equity peak. Once again, there are no clear signs of performance deterioration during the most recent period.

Figure 4 shows that the strategy completed 163 trades, all of them long. This is significantly fewer than the 768 trades generated by the Google strategy, confirming the greater selectivity of the filters used.

The strategy has a win rate of 57.06%, while its average trade is approximately $163. This is considerably higher than the average trade of the previous strategy, although it should be viewed in the context of the system’s much lower trading frequency and the limited number of setups it selects.

Overall, the strategy delivers a solid combination of average trade performance and equity curve growth.

Google and Tesla Trading Strategies: Conclusions

These two Google and Tesla trading strategies show how systematic rules can be used to capitalize on the stock market’s natural bullish bias without relying on purely discretionary decisions for trade entries and exits.

Although both strategies trade exclusively on the long side, they use very different approaches. The Google system looks for a continuation following a positive start to the trading day and operates more frequently, with 768 trades and a win rate of 36.46%. The Tesla strategy is more selective: it looks for a breakout following a volatility contraction and completed 163 trades, with a win rate of 57.06%.

The most noteworthy aspect is the recent performance of their equity curves. Both systems recovered from their latest drawdowns and moved above their previous highs, with no clear signs of performance deterioration over the period analyzed.

Past performance does not, of course, guarantee future returns. However, these results highlight the value of a structured trading process built around verifiable conditions, predefined risk management rules, and a repeatable methodology.

If you would like to learn more about the Unger Method, Andrea Unger’s methodology for developing, optimizing, and managing trading systems, click the button below to book a free consultation with a tutor from our team. Andrea Unger is the only person to have won the World Cup Trading Championships four times in the Futures category.

During the approximately 45-minute call, the tutor will walk you through the Unger Method and help you determine whether it could be a good fit for your specific situation and goals.

Until next time, and happy trading!