How we Made $50,000 in 2 Years Trading the S&P500

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In this video, we discuss two strategies from the Unger Personal Database that have performed very well on the S&P 500 market in recent weeks.

The first is an intraday trend-following strategy from 2017.

The interesting thing is that it achieved a larger average trade on the short side than on the long side. This is a great result, considering the S&P 500 has a pronounced bullish underlying behavior.

The second is a hybrid strategy with both mean-reverting and trend-following entries, and made a significant net profit of $3020 on the last trade.

Do you want to know more?

Watch the video right now! You'll discover:
-How the two strategies work
-The types of rules they use
-All the details about their performance

Enjoy 😎

Transcription

Introduction

Hello and welcome back!

As usual, today we’ll evaluate the strategies in our portfolio that have achieved the best results in the last period.

One of the coaches at Unger Academy here and we develop and use automated strategies on the major futures markets like Gold, Stock indexes, and more.

Today, we’ll look at two strategies that have performed well recently in the S&P 500 market, which is making some exciting moves today.

Here you can see the workspace with all strategies for the S&P 500 from Andrea Unger's Personal Database.

However, today, I’d like to introduce two strategies characterized by excellent trades in recent weeks.

Intraday Trend-Following Strategy

Let’s start with this strategy that we’re looking at now. It's an intraday trend-following strategy, which means that positions are closed at most until the end of the session, as was the case with these last trades.

And that will be the case with this trade as well, which opened at the same time as or immediately after the inflation data was released.

This triggered huge volatility, and the market has increased as much as 50 points.

This strategy still decided to continue to follow the trend and close the position at the end of the day.

Let’s now have a look at the report of the strategy, we see that it has had, let’s say, some not-so-good times and other very good times, as has been the case over the last two years.

This strategy was developed in 2017, so more or less at this point.

And let's say, after an initial phase in which the strategy had also worked quite well, there was an abrupt drawdown, a slowdown in this strategy, which then peaked at the end of 2021.

And from that point on, the strategy was able to make up lost ground by making a series of exciting gains.

The strategy places orders at two levels, calculated from the session's opening.

These levels are calculated simply as a distance from the opening price, determined using the ATR.

If the market moves upward from the open equal to a multiple of the ATR value, then the strategy will enter the market long.

If we go back to the report on this strategy, we see that it is an intraday strategy that doesn’t have an high average trade.

We’ve already added the commissions and slippage costs that would be incurred when live trading on this market.

Specifically, we’ve entered $30 per trade, including entry and exit trades.

You can see that this strategy, which is based on a trend-following approach, works almost better on the short side, so it’s even more effective.

The average trade on the short side is indeed larger than the average trade on the long side.

And all this in a market like the S&P 500, which we know has a very pronounced bullish bias.

Hybrid Strategy

Now, let's move on to the next strategy I want to introduce to you. It has also performed well recently.

It's a strategy that we call hybrid in the sense that the long side of this system enters with a mean-reverting logic, so against the trend, as was the case with the last two trades. When the market goes down, the strategy tries to buy.

In these cases, things didn't go very well. There was a stop loss of $1,300 and a break-even, which, with the costs, amounts to a $30 loss.

And then an excellent short trade that, unlike the long trades, enters following the trend and with rules that are pretty similar to those of the previous strategy.

Indeed, if we see a downward move from the open of the day to a certain level calculated using the ATR, the strategy enters the market short.

The trade was very successful in this case, with a net profit of $3,020.

Again, this strategy has been out of sample since 2018, so we can say, more or less, from this point forward.

You can see that it has also responded very well in the post-development period and is at all-time highs in equity.

In this case, the strategy, being multiday, has a much larger average trade.

We are at $268. It is well-balanced trades between long and short.

We still recommend more long trades than short trades in this market, because with a Buy-and-Hold like the S&P 500’s, finding the best times to sell short is much more difficult.

Conclusion

Over the last two years, this strategy has managed to bring home about $24,000 net of commissions and slippage, while the other strategy, which has also had a very favorable moment over the last two years, reached gains for over $30,000.

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.

BOOK YOUR FREE STRATEGY SESSION NOW >>
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.