‌Strategy of the Month (January): The Winner is a Breakout on Natural Gas Futures!

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In this video, we discuss the winning strategy of our January 2024 Strategy of the Month contest and two other strategies that we found particularly interesting among those submitted by participants:
-A breakout strategy for Natural Gas (winner of the contest!!)
-A breakout strategy for Corn Futures
-A trend-following strategy for Mini S&P 500

The winning strategy is based on a very simple code and generates an excellent average trade of $172 when tested against historical market data since 2010.

The Strategy of the Month contest is reserved for Unger Academy® students and rewards the participant who developed the best strategy using the Unger Method™ with a €2,000 Amazon voucher. To learn more about the contest and how to enter, click here.

If you are a One Year Target or AlgoTrader Fast student, we remind you that you can get the codes of the winning strategies of the contest by joining the Unger Strategy Club. click here to learn more!

Whether you are looking for insights to diversify your portfolio or want to get an idea of the strategies we teach at Unger Academy®, don't miss this video!

Enjoy! 😉

Transcription

Introduction

Hello and welcome to this brand-new video! One of the coaches at Unger Academy here, and today we we'll look in detail at the results of our Strategy of the Month contest for the month of January.

We'll find out which strategy won and other strategies you sent us that are also worth mentioning.

Indeed, you have sent us so many excellent strategies again this month!

In fact, this is the month in which you have sent us the most entries since the start of the contest. So we are happy, also because these are well-crafted strategies that prove that the Unger Method works and is also easy to transfer.

As we always do, we will give you operational insights by analyzing these strategies and discussing their performance in detail.

I also remind you that the Strategy of the Month contest is the monthly contest in which the Academy rewards the best strategies developed by our students using the Unger Method.

And by the way, there’s big news: to celebrate the beginning of our tenth year of business , we have decided to double all the prizes to be awarded.

So, from January to June 2024, the prizes for our contests will increase from €1.000 to up to €2.000 in the form of Amazon vouchers.

I would also like to remind you that if you want to get the code of the winning strategies in an open-source format, you can sign up for the Unger Strategy Club. This is the latest service that we’ve launched, which provides you with the codes of the winning strategy of this contest as well as of those of the past months, gives you access to one monthly live masterclass with our coaches, where you can get advanced training, and to a monthly video with new trading ideas, where we analyze our portfolio strategies to give you more ideas for developing new strategies.

Now, having said that, I’d say we are good to go. So let's start and go straight to MultiCharts to look at this month's strategies.

Breakout Strategy for Corn Futures

Let's start immediately with the first strategy I want to show you today. It’s this strategy developed by Alessandro on Corn, namely, Corn Futures.

It’s an instrument many traders don’t use very often, partly because it isn’t a very easy market to find strategies that work well.

In particular, we often say it’s necessary to develop multiday strategies because the average trade you can achieve trading this market isn’t so high, perhaps also because the session is more limited compared to other instruments.

So, let's say it's a bit more of a challenging instrument. Kudos to Alessandro for coming up with this great strategy!

It’s a breakout type strategy based on the highs and lows of the last two sessions, so the current session and the previous session, and entering in favor of the trend at those levels, so on their breakout.

Trades can only be opened within a specific time window that starts in the morning. Moreover, trades can last for a maximum of four days.

Let's look at the Performance Report to understand the performance better.

Here, we see the equity line with the close-to-close drawdown, so the drawdown of close trades, which it’s pretty limited.

We’re seeing, in particular, that the equity trend is pretty even. It’s an outstanding equity.

And as we said, the average trade, which is the most critical parameter, reaches up to $108 in this case. That may seem like a low value, but it’s perfect for this instrument.

Let's also look at the annual performance of this strategy: excellent, always positive, and definitely consistent, so, good job, Alessandro. Congratulations, keep up the superb work!

Trend-following Strategy for Mini S&P 500

Now let's move on to the second strategy I want to show you today. It’s a strategy developed by Roberto for the Mini SP 500.

A strategy that is based on the stochastic indicator. So, it uses the indicator as an entry signal.

He used it effectively because he changed the parameters a little bit and managed to get excellent results because, as we also see here, an equity curve of this kind is quite rare to see, as it’s really very good.

It’s a strategy that trades a lot. It stays in the market about 60% of the time and makes a lot of trades, although it’s still filtered through some patterns.

So, the average trade isn’t very high. It averages around $140. However, that’s more than acceptable.

You can see that it’s doing over 2430 in total.

The long trades can also be multiday, while the short trades are only intraday.

This limitation makes sense precisely because stock indexes are known to have an upward underlying movement, and there may only be limited periods when sudden declines can occur, so this distinction can certainly make sense.

The annual results, as you see, are excellent. As we said, the strategy makes a lot of trades per year, but still with excellent results.

So, kudos also to Roberto for this second strategy.

Winner: Natural Gas Breakout Strategy

And finally, we come to the winning strategy of the January contest, namely the strategy of Alessio, who coded a strategy on Natural Gas within a 15-minute timeframe.

It’s an instrument that’s also not easy to trade systematically, because it isn’t easy to find something that works well on it.

It’s a slightly more nervous instrument, shall we say, than others. So Roberto has done an excellent job because he has developed a straightforward but very effective strategy.

It’s a script with just a few lines and is essentially a breakout strategy, using the highs and lows of the current weekly session as entry levels.

So the strategy looks to see what highs and lows were reached during the week, and when they’re broken through, it enters the market long on the upside or short on the downside.

For exits, we have an appropriately proportionate stop loss and take profit.

There’s also a time exit, so, as you see in these cases, the trades end with a maximum duration of about two sessions, slightly less.

As I said, this is a straightforward code developed with symmetric filters, so using symmetric patterns, which is always a good rule of thumb when it comes to commodities.

Let's now look at the Performance Report to evaluate the results numerically.

We see an excellent average trade of about $172, which is pretty good considering also that it’s still making many trades. We are talking about 1000 trades from 2010 to today.

It’s an exciting equity that has been steadily rising without any major jolts.

Indeed, we see that the drawdown has relatively low peaks, which is also confirmed somewhat by the overall metrics.

Since 2010, we have made $168,000, with a drawdown of about 11,000, so a Net profit to Drawdown ratio of about 15 which is really good.

So, essentially, a simple strategy with symmetrical patterns on a commodity and excellent numerical results outperformed all the fantastic strategies you sent us and managed to win our contest.

So, congratulations, first and foremost, to Alessio, but also to all the other participants.

Keep up the good work. You are doing a great job!

Conclusion

Well, I hope you found this video helpful. If your goal is to develop strategies like the ones we saw today, you have come to the right place.

While you are learning in the Academy, you can also enter the contest reserved exclusively for our students and win an Amazon voucher worth €2,000 each month.

Finally, I’d like to remind you that if you want to get the code of the winning strategy, you can join the Unger Strategy Club! Check out the contents of this service for yourself at ungerclub.com.

If you have any further questions or need more information, I invite you to click the link in the description. From there, you can watch a free presentation by Andrea Unger and also receive his best-selling book "The Unger Method" at home covering only the shipping costs.

Finally, you can also book a completely free call with a member of our team to get strategic advice.

Thank you all. That is it for today. See you next time with the next Unger Academy video!

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.

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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.