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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, we present two strategies from our portfolio that trade the Gold Futures market.
Over the past two years, these strategies have generated an impressive profit of $35,000, net of commissions and slippage costs.
Both strategies were developed in 2017 and have been out of sample for several years.
The first strategy exploits the mean-reverting characteristics that have emerged in this market in recent years, while the second strategy takes advantage of recurring price movements.
Want to learn more?
Then don't miss this video! By watching it you'll learn:
-How the two strategies work
-All the details about their performance
Enjoy! 😎
Introduction
Hello and welcome back!
As usual, today we will evaluate the strategies in our portfolio that have performed the best over the last period.
One of the coaches at Unger Academy here, and in this new video, we will look at two strategies that lately have done very well in the Gold futures market, namely the futures that track the price performance of gold.
We are about to show you these two strategies that have made gains of about $35,000 over the last two years.
Mean Reverting Strategy
Alright, so the first strategy that we will show you today is a mean-reverting strategy that looks for market reversal points.
Specifically, this strategy enters long trades on a breakout of the previous day's low and enters the short trades on a breakout of the previous day's highs.
Gold is a trend-following market, so it likes to stay on trend and follow steady trends over time.
However, in recent years, from 2017-2018, this market has also developed mean-reverting characteristics, perhaps helped by the high liquidity that has flooded the market.
This strategy, which was developed in 2017, so around this time here, has shown excellent results, generating profits of $10,000 in the last two years.
And that's already net of the commissions and slippage we would have to pay when trading this strategy in live mode.
We have set the commissions and slippage at $30 per trade. So, we’ve already factored in a fixed average cost of $30 per trade.
If we look at the average trade of the strategy, we can see that it achieves optimal results, $192, which is a lot for an intraday strategy on Gold.
But we also see that the statistical sample, the total number of trades using historical data, is relatively small: 430 trades.
So, we can also look at the Annual Period Analysis page to see how many trades it does year-over-year.
And there we see that the only negative year was 2019, which ended virtually breakeven, with a loss of $300.
And then we see that the last four years, from 2020 to now 2023, are all four very positive years.
Bias Strategy
Let’s turn now to the next system.
This is bias strategy, so it's very different in style from the one we've just seen.
Indeed, this strategy will buy and sell at certain times of the session.
In the first part of the session, it will sell, i.e. it will open the short positions.
While in the second part of the session, it will buy, i.e. it will open the long positions.
This bias strategy was developed in 2017 and has provided excellent profits.
Again, we see that the post-development years after 2017 have been positive, with an outstanding year in 2021 and an excellent start to 2023.
On the other hand, two years almost broke even again, with losses limited to about $1,300 in 2018 and 2020.
If we look at the average trade of the strategy, we see that it is less capacious compared to the one we had in the previous strategy.
That's mainly due to the fact that this strategy only keeps the positions open for a few hours, so the average trade value can't obviously be very large.
Nevertheless, $120 is certainly a considerable value for such a strategy.
In this case, the total number of trades exceeds 2,000 trades altogether.
With the previous strategy, we made about 400 trades in the same period, so between 2010 and 2023.
The equity line of the system is also very positive, as you can see.
The out-of-sample period starts again from about this point, from 2017, when we developed the strategy.
And although the slope of the curve is not identical to the one in the in-sample period, the strategy succeeded in maintaining the gains and good results seen in the strategy development period.
Over the last two years, the strategy has generated as much as $25,000. Together with the $10,000 we saw above, the gains over the previous two years amount to over $35,000, net of commissions and slippage, as mentioned at the beginning of this video.
The drawdown of this system is about $10,000, while the previous strategy had a drawdown of only $5,000.
So, we could say that we need at least the sum of these 10,000 and 5,000 drawdowns to be able to use these two strategies in real markets,
to which then we need to add the margin required by the broker to open positions in Gold futures.
Conclusion
So, if you want to learn how to develop trading strategies like the ones we've seen today, click the link you find in the description of this video.
From there, you can watch a free presentation by Andrea Unger, get our best-selling book by paying only the shipping costs, or even book a free call with a member of our team.
If you enjoyed this video, leave us a Like, subscribe to our channel, and click on the notification bell to stay updated on the release of all our new content.
See you next time, bye bye!
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.
