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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, we take a closer look at the winning strategy from our May 2024 Strategy of the Month contest and highlight two other standout strategies from all the participants:
-A bias strategy on Gold (our winner!!)
-A trend-following strategy on Orange Juice
-A breakout strategy on the DAX
The winning strategy is impressively straightforward, boasting an average trade of nearly $140 and an outstanding Net Profit to Drawdown ratio of over 30!
The mastermind behind this strategy, Giuseppe, is no stranger to our contests. He also won in March of this year, scoring another €2,000 Amazon voucher, and he claimed the Trader of the Month title back in February 2022!
Kudos to Giuseppe for his continued success!
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! 😉
Introduction
Hello and welcome to this brand-new video. Today, we'll dive into the results of our Strategy of the Month contest for May.
As always, we'll reveal the winning strategy and highlight the other notable submissions you sent us.
This time, it was particularly challenging to pick a winner because you continue to send us incredibly well-developed and promising strategies. This shows the Unger Method not only works but is also easy to learn and apply.
In this video, we'll also provide actionable insights by analyzing these strategies' logic and performance together.
Remember, the Strategy of the Month contest rewards the best strategy developed by our students using the Unger Method each month.
To celebrate our Academy's tenth anniversary, we've doubled the prizes for the first six months of 2024.
So, for all Strategy of the Month and Trader of the Month contests, the prizes have increased from €1,000 to €2,000 in Amazon gift cards.
Also, if you want the winning strategy's code, join the Unger Strategy Club. This exclusive service gives you access to the open-source code of the winning strategy and all past winners.
The club also offers a monthly live masterclass where you receive advanced training.
Plus, you get monthly operational insights, illustrating the main rules of our portfolio strategies, which can help you develop new ideas.
But let's start reviewing this month's strategies and see how they were developed.
Trend-Following Strategy on Orange Juice
First, let's look at Alessio's strategy. Congratulations to him.
It's a strategy on Orange Juice, which may not be as common but can be very rewarding given its recent price surges.
Alessio developed a classic strategy based on breaking the highs and lows of the current or previous session, staying in position for a maximum of about two and a half days, leveraging this asset's trend-following tendency.
The equity is quite interesting. There are some ups and downs, especially at the end, where it experienced a significant drawdown but quickly recovered.
The worst drawdown is at the end, but overall, it's a good equity.
We see a good net profit to drawdown ratio, almost 9, and an excellent profit factor.
For this instrument, it’s also very important to evaluate the average trade, which in this case is around $260.
As we see from the chart, there are moments when the market is not very liquid that can lead to a high risk of slippage.
This must be considered and managed properly by achieving higher average trades to cover these situations.
Annually, the strategy is quite consistent.
Only 2018 was slightly negative, but the other years are more than good, with an average of 30-40 trades per year.
So, congratulations to Alessio, great strategy.
Breakout Strategy on DAX
Next, let's look at Simone's strategy.
He did a fantastic job with a strategy on the DAX with a 15-minute timeframe, based on breaking the previous day's highs.
It uses the classic DAX session from 8:00 to 22:00 and is filtered with a single pattern and the ADX indicator, which Simone used effectively to achieve very good results.
We see consistent results over the years, except for slightly negative 2016-17, but otherwise, very interesting results with a very high average trade and a very good equity, rising almost at a 45-degree angle and working very well.
A respectable net profit, especially with an excellent net profit to drawdown ratio of more than 12.
A very good strategy from Simone, and congratulations to him for the development.
Winner: Bias Strategy on Gold
Finally, let's move on with the winning strategy for May, which is Giuseppe's strategy on the Gold future, based on a well-known bias.
It's not awarded for originality because a bias strategy on gold has already won this contest in the past, but Giuseppe's strategy impressed us with its simplicity and effectiveness with very few rules.
It exploits a well-known bias on gold, buying in the morning session and making short trades at night.
During these time windows, morning for long and night for short, it enters on the break of a Donchian Channel, a price channel created from the highest highs and lowest lows.
The position is managed with a time-based exit, tied to the bias trend, but there's also a safety stop loss. No take profit is included.
Without particular filters, only one pattern for the long side and one for the short side, it achieves significant results.
We see a very high net profit, also due to the high number of trades this strategy makes. Above all, we see a net profit to drawdown ratio that is truly impressive, over 30.
So this is a really great strategy.
Here is the equity. You can see from the shape of the curve that the strategy executes many trades.
This may not be a plus point, but the average trade, despite the high number of trades, is more than sufficient to trade this liquid future, and it’s around $640.
Certainly, a strategy that can bring satisfaction.
It trades a lot, about 200 trades a year on average, but manages to maintain a sufficient average trade to cover trading costs, ensuring consistent results that allow it to be used without particular issues.
Congratulations again to Giuseppe and thanks to everyone for participating and sending in so many interesting strategies.
Conclusion
I hope this video has been helpful.
If your goal is to create trading strategies like the ones we've seen, you're in the right place.
During your learning process, you too can participate in the contest exclusively for Unger Academy students and try to win an Amazon gift card worth €2,000 each month.
Lastly, if you want the winning strategy's code, join the Unger Strategy Club.
Check out the content of this service at ungerclub.com.
For any other information, click the link in the description.
From there, you can get a free presentation from Andrea Unger, and receive our bestseller book, "The Unger Method," by covering only the shipping costs.
You can also book a call with one of our tutors for a free strategic consultation.
Thanks again for watching and see you next time!
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.
