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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, you'll discover two strategies that are performing very well on Soybean futures.
The first is an intraday breakout strategy that trades only on the short side (thus, it only sells). From 2010 to today, it has earned over $75,000 with an average trade of $134 and a drawdown of just over $5,000.
The second is a bias strategy and trades only on the long side (thus, it only buys). From 2010 to the present, it has gained a remarkable $61,500, with an average trade of nearly $165 and a very low drawdown of just over $3,000.
Want to learn more?
Then watch the video now! You'll discover:
-How the two strategies work
-All the details on their performance
-Some useful information for trading Soybean futures
Enjoy đ
Introduction
Hello and welcome to this brand-new video where we analyze a couple of strategies from our portfolio that are performing very well.
Today, in particular, we will focus on the Soybeans market, a very interesting and highly liquid future, which can be approached with various strategies and time horizons, both intraday and multi-day.
Let's now take a look at the first strategy I want to show you today.
Intraday Breakout Strategy
This is an intraday breakout system that uses a 5-minute time frame for "data1" and a time frame of 1,440 minutes for "data2".
The system opens new trades on breaking the previous day's lows.
I'm only talking about lows because this system trades only on the short side, meaning it only opens short positions and doesnât enter long positions.
Going back to the system rules, we mentioned that the strategy, once prices have broken the previous day's low, enters the market and holds the trade open until the end of the day, unless a profit target or stop loss is reached earlier, as we can see from this image, where this trade is triggered by a breakout of the previous day's lows and then is carried into profit until the end of the day.
This is supplemented by filters related to the trend and volatility, including our pattern libraries.
If we take a look at the metrics, we will see that the system has earned, since 2010, approximately $75,000, with a max drawdown of only $5,175, which is a notably low drawdown.
As for the distribution of profits over the years, we see that, except for 2010 when we closed the year at a loss, for the rest of the period all years are profitable.
Let's also take a look at the overall average trade which turns out to be about $134 distributed over 561 trades. This is sufficient to cover live trading costs, including commission fees and slippage, considering also that this is an intraday system.
Finally, let's also take a look at the equity line, which is very nice and regular considering also the metrics we saw earlier.
Bias Strategy
Let's now move on to the second strategy. This is a bias type strategy, and in this case, too, we trade only on one side. In this case, itâs the long side and we work on a 5-minute time frame.
Coming to the rules of the second strategy, it exploits a recurring overnight price bias of the underlying asset, the Soybean future, and in particular itâs a bias that occurs over the weekend.
According to the rules, the strategy will open a long trade on Friday at the end of the session and will close it at the beginning of the week when the market opens again.
Obviously, if we didn't put any filter and didn't limit the strategy in any way, it would open a new trade every week on Friday. That's exactly why weâve introduced some filters to basically extrapolate the best trades.
But let's dive into the systemâs metrics. The strategy has earned about $61,500 since 2010, with a really very low maximum drawdown of $3,375.
Also, the distribution of profits over the various years is very regular and always positive, except for 2015.
As usual, let's also take a look at the average trade of the strategy, which almost reaches $165, an extremely high value for the Soybean futures.
Finally, letâs also take a look at the equity curve of the strategy which, as we imagined seeing the excellent metrics, turns out to be very nice and extremely regular.
So, we have also seen this second strategy and I would say that's all for today.
If youâre interested in systematic trading and learning how to develop strategies like the ones weâve explored today, click the link in the description of this video.
From there you can access a free presentation by Andrea Unger, get a copy of our best-selling book â The Unger Method â for just the cost of shipping, or schedule a free strategic consultation with our team.
Thank you for watching and I look forward to seeing you in our next video.
Bye-bye for now!
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.
