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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, we discuss the winning strategy of our April 2024 Strategy of the Monthe contest and two other strategies that we found particularly interesting among those submitted by participants:
-A mean reverting strategy on the DAX future (winner of the contest!)
-A breakout strategy on the Mini Dow Jones future
-A bias strategy on Soybean futures
The winning strategy produces an excellent average trade of around €500 and a steady equity line.
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
Hey there and welcome to our latest video. Today, we’re diving deep into the results of our April "Strategy of the Month" contest.
We'll go over some of the top and most promising strategies you've submitted and unveil the winning strategy, showcasing an equity line that is truly impressive.
Thanks to everyone who entered the contest for a chance to win the €2,000 Amazon voucher prize this month.
Picking the winner was tough, but we ultimately rewarded a pretty unique method, a mean reverting strategy on the Dax Futures, which you are looking at right now.
Remember, the "Strategy of the Month" contest is only for Unger Academy students, where you can enter your strategy and vie for a €2,000 Amazon voucher every month.
Also, I want to introduce you to the Unger Strategy Club, our newest offering at the Unger Academy.
This service grants you access to a monthly live masterclass, advanced training, and monthly videos with operational tips, detailing the main rules of a strategy from our personal portfolio.
Last, through the Unger Strategy Club, you get access to all the codes of the winning strategies from this contest, including this video’s features strategy and all past winners.
All the codes are open source, so you can review the scripts, delve into their construction and grasp how they function.
Alright, let's dive in. I won't start with the winner, but with two other strategies that are equally compelling.
Breakout Strategy on the Mini Dow Jones future
First up is a strategy that operates on the Mini Dow Jones Futures.
The Mini Dow Jones Futures shows similar traits with other American stock indexes.
This is an intraday strategy, which means it closes all positions by day’s end.
Here are the session ends, marked by those white lines, and as you can see, we exit at "End of Day" every session.
This strategy is all about a breakout approach that capitalizes on previous day’s highs. Essentially, as the price tops the previous sessions’ highs, we’ll go long and close out at day’s end.
The returns here are quite intriguing, with a growing equity line and a well-balanced average trade.
In fact, if you look at the profit history you’ll see that the average trade is spread evenly across the years.
There are some down years, which is expected with this type of strategy, as it focuses solely on long positions. Despite some sharp declines during events like the Covid era or in 2022, when the Dow Jones and other stock indexes experienced some significant holdbacks, this strategy effectively filtered these periods, yielding a steadier equity line compared to the typical buy and hold approach.
Bias Strategy on Soybean Futures
Now let’s check out the second strategy today. This one’s also pretty unique. It targets soybeans, specifically the Soybeans future traded on the CME exchange.
This strategy exploits a market bias, a consistent pricing trend.
We’ll buy and sell soybeans around the weekend – Friday and Monday sessions - to leverage the weekly market movements of this commodity.
It’s based on a simple logic - easily pinpointed using our Bias Finder software – and has produced a really impressive equity line and a strong average trade value that easily covers all trading costs, including commissions and slippage.
It trades on both the long and short sides, unlike the previous system, and the average trade it generates is significantly robust for both.
The drawdown is minimal. And though the net profit isn’t massive, mainly due to the relatively few trades it makes, under 700, the average trade value is quite high, specifically since 2010, it garnered about $130,000, not counting costs and commissions.
But its real benefit is its high decorrelation from other strategies, even those within the grains sector, as it showcases a distinct and unique market behavior.
We might find similar patterns on Soybean Oil or Soybean Meal futures, but this strategy stands apart from those on other commodities like meats or stock indexes or energy futures.
So it remains an invaluable and intriguing strategy, worth maintaining in our portfolio for diversification.
Winner: Mean Reverting Strategy on the DAX Future
And finally, here’s the winning strategy of the April 2024 contest.
It’s quite special and unique. It operates on the future of the German stock index, the DAX, known for being highly responsive to breakout strategies. In simple terms, its trends are generally easy to follow.
However, the DAX Future has recently been struggling with breakout strategies, prompting traders to explore new ideas, including mean-reverting methods.
What’s fascinating is that the true value in systematic trading isn’t just having flawless strategies that can weaken over time but having a process to continually develop and refine strategies, as market conditions evolve.
This process allows us to adapt to current market and innovate beyond traditional approaches like here, with a mean reverting strategy on the DAX futures.
The average trade of this mean reverting strategy is outstanding, nearly reaching €500.
Sure, there are filters that boost the average trade, but even without them, like those based on week days or a specific price patterns, the average trade remains substantial and comfortably covers all costs and commissions.
Conclusion
So, if you’re looking to craft your own trading systems like the ones we showcased, you are in the right place.
While learning, you’ll also get to participate in this contest exclusively to Unger Academy students, with a chance to win a €2,000 Amazon voucher every month.
Lastly, don’t forget to check our new Unger Strategy Club.
You can see for yourself at ungerclub.com.
Click on the link in the description to see the contest rules. If you’re interested, you can also book a free consultation with one of our tutors for all the details you need.
Thanks for watching this video and I can’t wait to see you in the next one with more insights on systematic trading. Thanks and catch 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.
