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BOOK YOUR FREE STRATEGY SESSION NOW >>The rally of the energy market continues… why not take advantage of it?
In this video, we show you two simple strategies for the RBOB Gasoline future that performed pretty well over the last month. Actually, they made $12,000 in September!
The first one is in tune with the trend-follower nature of RBOB Gasoline, whereas the second one is based on a reversal approach.
Watch the video to learn more!
Hello everyone and welcome back to this new video dedicated to the analysis of the systems in our portfolio.
Ok, so let's start with the video. Today, we’re going to be talking about two strategies for the RBOB Gasoline future. And as you know, over the last period there has been a lot of talk about this and other energy futures such as Crude Oil and Natural Gas because of the huge increase in their prices that have taken place over the last few months.
So I want to show you two strategies that took advantage of this rally. Of course, the short trades have suffered quite a bit, since this market has almost only gone up.
So let's see how these two systems work. The first one - the one you can see above - is a trend-following strategy. This means that it follows the trend, so when the market goes up, the strategy buys and when the market goes down, the strategy sells. It may seem a pretty trivial approach but it actually works on this kind of market. As for the entry levels, they are calculated using the previous day's highs and lows.
As you can see, in the last period, especially in the last month, there have been three great target profits worth $3,000 each since September.
Let's also take a look at the report. Of course, in it, we can see only the results of the last 300 days of trading of this strategy, so the last year or so. This is the equity line that comes out of it. There was a somewhat swinging period, but then it's been rising to the present day, and now we are at a peak of equity. So this strategy is performing wonderfully at the moment.
The equity of the long trades is pretty good and made some excellent profits, whereas the equity curve of the short trades went through some tough moments. However, it was able to recover from them.
Now let's move on to the second strategy, which is also for the RBOB Gasoline future. This strategy is very different from the previous one. It's based on a reversal, counter-trend approach, which means that when the market goes up, the strategy opens a short position - as here, for example - and when the market goes down, it opens a long position. Of course, sometimes it works pretty well, and as you can guess, sometimes it doesn’t work as well.
By the way, it’s really uncommon to see a reversal strategy that works so well on a market such as RBOB Gasoline, whose dominant tendency is to follow the trend rather than changing direction when certain price levels are reached. So you can believe me when I say that I was amazed at seeing these great results.
So let me show them to you. This is the equity line of the short trades, which as I’ve already mentioned, also gone through absolute hell. However, the equity curve of the long trades worked really well.
This here is the overall equity curve of the system, and it’s quite good, although there were some shocks in the last year. Nevertheless, the profits are definitely good, especially if we consider that this is quite a heavy market. One point of excursion of this future equals a monetary excursion of $42,000 in your trading account. So be careful if you decide to trade this market. Indeed, even if developing systems for it can be pretty easy, live trading on this market may cause you some headaches.
Finally, let's see the monthly performance of the system. So here's that bad period with the fluctuating results and several months in the red. But then, as you can see, there are also some positive months.
Over the last period, there’s a majority of black months – instead of red – which is a great source of satisfaction for us.
If you want, you can try these systems for yourself because they’re not very difficult. I mean, actually, they’re quite simple.
If you want to learn more about creating systems like these, go please check out our webinar. You can find the link in the description of this video.
Thank you very much for watching! And will see you soon in the next video, 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.
