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BOOK YOUR FREE STRATEGY SESSION NOW >>Today we want to show you two strategies that are performing great on Gold futures!
Both strategies are intraday and, from April 2021 to the present, have earned as much as $37,000!
Watch the video now and learn more about:
-How the two strategies work
-Their entry rules
-The rules for exiting open positions
-All the details about their in-sample and out-of-sample performance
Enjoy! š
Introduction
Hey everyone, welcome back to our usual chat about the portfolio strategies that have recently shown the best performance.
I'm one of the coaches from Unger Academy and today weāre going to be looking together at two strategies on Gold futures that are performing really well.
Just think, in the last 24 months alone, they have collectively made more than $37,000 on a single contract.
So let's take a look at them together now.
The first strategy
Ok, let's start by looking at the metrics of the first strategy.
We find that this strategy doesnāt trade very much. Itās made 600 trades over 15 years, so about 40 per year.
Doing so generated a net profit of $67,000 and an average trade of $110.
Looking at the Annual Rolling, we can see that in recent years, for example, starting in 2021, the average trade has increased significantly.
260$ per trade is definitely a remarkable value for the instrument that we are discussing here.
Looking at the Monthly Rolling, we can also see how this strategy has made a profit of $22,000 on a single contract over the last two years, and it will be from April 2021 to April 2023.
So the question is, what strategy are we talking about?
We are talking about an intraday strategy on Gold with a 5-minute time frame and data from 2008.
Below we see that it also uses a secondary series with a 15-minute timeframe.
This strategy first waits for a price movement in a particular direction, such as down, and then enters in the opposite direction, such as up, when the market has signaled a recovery.
We enter long when the recent lows are broken or short when the price falls below the recent highs the market reaches.
The system is symmetrical, that means we have mirror image conditions for long and short positions.
And because itās a commodity, this is a best practice that we use at Unger Academy to add robustness to our strategies.
The positions are then closed at the end of the session or with the standard monetary exits with stop loss, take profit, and breakeven if they occur before the end of the trading day.
Alright, so let's go and have a look at the chart and see how this strategy works.
Here we see a session where a short trade was generated and closed at a profit.
This is the minimum that was reached in the session.
Then in the next session, after falling below the low, there was a price movement and an upswing in the market prices.
And this is where we entered to close our trade with an excellent profit.
The second strategy (trend following)
Alright, letās move on to the second strategy.
Again, we work with the Gold future with a 5-minute time frame and using data from 2008.
Alright so let's just go straight to the metrics.
Here we have a net profit of $202,000 and a number of 1,200 trades, which gives an average trade of $162, which again is excellent for the instrument that we are trading.
The equity curve is truly enviable.
An interesting fact is that this strategy was developed at about this point, which Iām indicating to you now, and it was launched in 2016 and continues to perform as if we were still in the development phase.
Itās very rare to find strategies that, when they go live, continue to perform as well as they did in the in-sample period.
We find that the curve is very nice on both the long and the short sides.
Even for this strategy, the gain over the last two years, from April 2021 to today, is substantial. When combined with the previous strategy, $15,000 with a single contract gives us the $37,000 that I mentioned earlier.
But how does this strategy work? Well, the logic is very simple.
If the last day closed not far from the previous one, as we can see in this session, so if we come from a relatively "flat" session, we could say,
then we will either go long if yesterday's high is broken or go short if prices fall below yesterday's low.
So, this is a trend-following strategy, meaning it tends to follow the direction that the market is going.
We are working on a commodity, and as we have already seen before, we need to adopt a symmetrical trend to make our strategy more robust.
This also closes the positions at the end of the session, which also reduces the risk associated with having open positions for several days.
It follows that the duration of the trades will be only a couple of hours.
Similar to the previous strategy, we have monetary exits in the form of stop loss, take profit, and breakeven that are triggered if these values are reached before the end of the day.
So let's take a quick look at how this works here in the chart.
This is the previous session. As we said, this has to be pretty close for you to have a chance to enter the market.
This is the high of the previous session, and in the session that Iām showing you now, there was a break of that level to the upside, so we entered the position with a long order and then closed it at the end of the session with an excellent profit.
Final thoughts
Alright, so today, I showed you two strategies on Gold futures that exploit a very simple logic, nothing complicated, in short.
And we should remember that simplicity in trading, understood as a limited number of conditions, always pays off.
And the results of these two strategies are a good example of that!
If you'd like to learn how to develop such trading strategies and start your journey as a systematic trader, please go and click the link below.
From there you'll be able to watch a free presentation by Andrea Unger, or go and get our best-selling book "The Unger Method," covering only the shipping costs, or even book a free call with a member of our team.
If you liked this video, please leave us a Like, subscribe to our channel, and click on the notification bell to stay updated.
Thanks so much for watching and I will see you soon next time! Bye-bye!
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 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.
