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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, we discuss the winning strategy of our March 2024 Strategy of the Month contest and two other strategies that we found particularly interesting among those submitted by participants:
-A breakout strategy with seasonal filter for Natural Gas (winner of the contest!)
-A trend following strategy for RBOB Gasoline
-A breakout strategy for Crude Oil
The winner is a simple yet original strategy that combines the breakout approach with a seasonal filter. It produces an excellent average trade of $295 and a very regular equity curve.
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 everyone and welcome to this brand-new video. Today, we're going to be looking at the results of our Strategy of the Month contest for March 2024.
We'll uncover the winning strategy along with other noteworthy submissions you've sent us.
I must say, as always, you've sent us many interesting strategies, but particularly this month, there were numerous well-developed and notable ones, so we'll go through them together.
We'll take a closer look at a couple of them, including the winner.
As always, we'll provide you with operational insights by analyzing the basic logic of these strategies and observing their performance.
Remember, the Strategy of the Month contest is the competition that rewards the best strategy developed by our students following the Unger Method.
As you may already know, to celebrate the beginning of the Academy's tenth year , we've decided to double the prizes for the first six months of 2024.
So, for all editions of the Strategy of the Month and Trader of the Month contests, the prizes will increase from 1,000 to a whopping 2,000€ in Amazon vouchers.
Additionally, I remind you that if you want to get the code of the winning strategy of this contest, you can join the Unger Strategy Club, an exclusive service from the Unger Academy, offering access to the open-source code of the winning strategy along with all those that have won in the past.
The Club also offers you the opportunity to access a monthly live Masterclass where you will receive advanced training, and you can also receive monthly videos with trading strategy ideas where we illustrate the main rules of some of the strategies in our portfolio.
Trend Following Strategy for RBOB Gasoline
Alright, so let's get started immediately by reviewing this month's strategies, beginning with a strategy on RBOB Gasoline.
Alessandro sent over a solid strategy for trading gasoline futures. It’s a clean 15-minute timeframe setup using a pretty standard trend-following breakout approach.
So, we'll place our buy and sell orders at the break of today's high and low or, more precisely, at the break of the current session's high and low.
Clearly, in these cases, it's important to give the market time to create these highs and lows from the opening of the session, so we must wait a certain amount of time from the start of the session so that these highs and lows are significant.
Even more so for this instrument, which, as we all know, has rather low volumes in the first hours of the session, the nighttime hours.
Here we see some rather messy bars. So, it's advisable to avoid operating in the first hours of the session.
Then, from a certain time on, let's say once the highs and lows have formed, we can place our orders.
Let's see some examples here. For instance, here a low was formed and the strategy went short.
Unfortunately, it hit a stop here. However, for example, in this case, from the session, which is this one, this high was formed. Afterward, the strategy entered on the break and achieved a great gain.
So, if we look at the results, they are quite regular over the years, definitely a great annual trend.
Also, the average trade is quite substantial, $330, with an equity line growing very regularly.
So, congratulations again to Alessandro, truly a good strategy.
Breakout Strategy for Crude Oil
The second strategy I'd like to show you today is the one sent to us by Vittorio on Crude Oil with a 60-minute timeframe.
Here too, we have a breakout strategy that will enter at the break of the highs of the last 9 bars, so the last 9 hours, or the lows of the last 9 hours, with some operational filters.
He added an ATR filter to find low volatility periods that often come before big moves, especially when price breaks above or below recent highs and lows. This helps the strategy pick better trades.
He also included a time window, to enter only a few hours after the session opens, and a maximum duration of trades.
We see, even in this case, a very regular equity curve, definitely interesting. Net profit and drawdown are very good with a ratio of 17, so really excellent.
The average trade is $340, also in this case, really substantial to cover the trading costs.
The trend is pretty steady, but this early 2024 action isn’t looking too hot. Still we’re just getting started, so there’s plenty of room for things to turn around and surprise us.
Congratulations again to you, Vittorio.
Winner: Breakout Strategy for Natural Gas
And here we finally come to the last strategy of today, the winner of the March 2024 contest.
The strategy was sent in by Giuseppe, and he deserves a big round of applause. Not only does it put up pretty impressive numbers but it also stands out from the crowd. We could say he’s got a bit more creativity and originality going through, which is always a breath of fresh air.
It's really very simple, just a few lines of code that exploit a very interesting concept, namely a seasonality on Natural Gas.
In this case, in fact, the strategy is a breakout strategy, so it will enter at the break of a certain level, but only in certain periods of the year.
By studying Natural Gas's yearly behavior with our proprietary Bias Finder software, interesting patterns emerge. In the early months the prices tend to fall, but during the summer, when the Natural Gas stocks are accumulated in anticipation of winter, the price usually rises or remains stable.
Only to fall again in the autumn, in anticipation of winter.
Giuseppe’s strategy cleverly capitalizes on these two distinct periods in Natural Gas’s yearly cycle, from the start of the year through March, and then again from August or September onwards, until December, prices typically trend downwards. It’s during these times that the strategy really shines, positioning itself to profit from the prevailing bearish sentiment.
The strategy filters out the summer months and only takes short positions during the other periods, effectively leveraging the seasonal tendencies.
By doing this, the strategy achieves a remarkable and stable equity curve. The flat stretches that we observe correspond precisely to the summer months, when the strategy remains inactive.
The strategy manages to secure an appealing average trade, consistently hovering around $300. As mentioned, it exclusively takes short positions and maintains a fairly steady annual trend, apart from a few minor exceptions.
So congratulations again to Giuseppe for this strategy!
Especially for the originality and simplicity with which you've coded it.
Conclusion
We hope you found this video insightful. If your goal is to develop strategies like the ones we've just seen, you're definitely in the right place. During the learning process, you too can participate in the contest reserved for our students to win an Amazon voucher worth 2,000 euros every month.
And I remind you that if you want to get the code of the winning strategies, you can subscribe to the Unger Strategy Club. You can find all the details at ungerclub.com, and judge the service for yourself.
For any other information, I invite you to click the link you find in the description. From there, you can get a free presentation from Andrea Unger as well as receive the bestseller book “The Unger Method” at home covering only the shipping costs.
Don’t forget you can schedule a call with one of our team members for a free strategic consultation.
And we look forward to bringing you more actionable insights in our upcoming videos!
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.
