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BOOK YOUR FREE STRATEGY SESSION NOW >>Today we want to show you two strategies that are performing great on RBOB Gasoline futures!
Both strategies are based on a trend-following approach and, from May 2021 to the present, have earned as much as $52,000!
Watch the video now and learn more about:
-How the two strategies work
-Their entry rules
-The rules for exiting open positions
-All the details about their in-sample and out-of-sample performance
Enjoy! 😎
Introduction
Hello and welcome back to our usual chat about the strategies of our portfolio that have performed well over the last period.
I'm one of the coaches at the Unger Academy, and in this new video, we're going to be looking at two strategies that have recently performed very well in the RBOB Gasoline market, managing to achieve profits of a whopping $52,000 in the last two years.
Performance and rules of the first strategy - Trend following intraday
Ok, so let's start with the first strategy that I want to show you today. It's a trend-following strategy on RBOB Gasoline futures and works in intraday mode, which means that all open positions are closed by the end of the session.
It's a strategy that opens both long and short trades, so it takes both bullish and bearish positions. Now, we can see that starting from 2021, over the last few years this strategy has been making excellent profits and we are currently near the strategy's equity highs.
Let's have a look at the average trade of this system. The value we'll see it's net of commissions and slippage, since we have already considered these costs, we've estimated them at an average of $50 per operation. So the average trade amounts to $137 and it's fairly well balanced between long and short trades.
As we can see, the equity line of the curve for the long trades, which is this one here, has done quite well especially during the rally we saw on energy products such as Crude Oil and gasoline itself. While on the short side, just as the same rally was happening, obviously struggled more, only then to recover the ground it had lost.
Overall, the strategy behaved pretty well, especially if we consider the buy and hold, which was certainly very volatile, at least as far as the first part of this backtest is concerned, and which at this moment is becoming more stable.
Let's have look at the annual results of this system. Of course, we start from 2021 and they have more or less been constant all the years into 2023. The average trade is increasing for now so we hope that the strategy will continue in this way throughout the whole year.
As we said, this is a trend-following strategy that at specific times of the day, places long or short orders if the market is above or below the high or low of the previous bar, obviously trying to follow the underlying trend. All open positions are closed by the end of day or a few hours after the trade has opened.
Performance and rules of the second strategy - Trend following plus Donchian Channel
Let's now move on to the second strategy that I wanted to talk to you about. This one too is a trend following strategy that will therefore try to exploit the underlying trends of the market by following them.
We can see also in this case that the system was already out of sample in the last two years, so it was programmed in 2017. So these are data that we used post-development, and we can see that the strategy has yielded profits of over $30,000, in this case a bit less balanced between long and short.
We see that the overall average trade amounts to $114, of which roughly $72 is on the long side and $146 is on the short side, which has evidently performed better on this underlying in the recent period, which is quite interesting.
Even during the phase, as we said earlier, of a strong market rally, it still managed to defend itself well. And then in response to the following declines that somehow let prices breathe, the short side obviously worked better compared to the long side.
In this case too, the annual results are positive. In 2021 we see a somewhat smaller average trade value, so the results were not exceptional. But then 2022 and also 2023 brought excellent results. Ok, let's take a look at the logic of this strategy, which, as I was saying, is a trend following strategy, and in this case uses an indicator, the Price Channel, also called the Donchian Channel, built on the last 180 bars.
The bars are calculated at 5 minutes. And upon breaking this channel, the strategy will enter either long or short depending on whether the channel is broken upwards or downwards.
This strategy will also close its positions a few hours later and always by the end of the session.
Overall, then, we see that these two strategies just shown have performed very well in the last two years. And we know that the trend follower logic is the strongest and most dominant in the energy markets.
Now let's take a look at the results from the last two years. We see that from May 10, 2021 to May 10, 2023, the strategy has produced profits of $18,300, already net of commissions and slippage.
While the second strategy, more or less in the same period, you see that it has produced $34,000. For a total of $52,000 in the last two years.
The gasoline market is certainly a very interesting market because it is very volatile and because it can be approached with different types of logics.
If you want to learn how to create trading strategies like the ones shown in this video, go and click on the link in the description of this video! By doing so you'll be able to watch a free presentation by Andrea Unger, get our best-selling book "The Unger Method" just by covering the shipping costs, or even book a free call with a member of our team.
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Thank you so much for watching and I will see you soon in our next video! Bye bye for now!
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.
