Strategy of the Month – August 2026: Trend Following Trading on NVIDIA stock

In this article, we take a closer look at the August 2026 Strategy of the Month, selected from the systems developed by Unger Academy® students. This month’s winning strategy is a Trend Following strategy designed for trading on NVIDIA stock and based on a Donchian Channel combined with a volatility filter.

We’ll explore how the strategy works, the results it generated in backtesting, and the elements that helped improve one of its most important metrics: Average Trade.

We’ll also analyze another strategy that ranked among the month’s best, developed on Gold futures using a multiday Reversal approach.

The Strategy of the Month Contest: How It Works

The “Strategy of the Month” competition is exclusively for Unger Academy® students and rewards the best strategy developed using the Unger Method™. Each month, students can submit their strategies for a chance to win a €1,000 Amazon gift card!

If you would like to access the source code for the winning strategies, you can join the Unger Strategy Club, one of our Academy’s exclusive services. Members receive the open-source code for the current month’s winning strategy, along with the code for all previous winners.

The service also includes access to a monthly live Masterclass featuring advanced training and a monthly video offering trading insights, in which we explain the core rules behind strategies from our portfolio.

By joining the Unger Strategy Club VIP, you’ll also receive exclusive access to the open-source code for every strategy submitted to the contest and approved by the Unger Academy coaches.

Let’s now take a closer look at the best strategies submitted in August.

A Multiday Reversal Strategy on Gold Futures

Among the strategies submitted this month that did not win the award, we selected one developed by Marilena, whom we would also like to congratulate.

This is a Reversal strategy, meaning that it seeks to capitalize on the tendency of markets to move in one direction before pulling back in the opposite direction. What makes this strategy particularly interesting is the market it was developed for: Gold. Gold is generally considered well suited to Trend Following strategies, but over shorter time horizons and under certain conditions, it can also be approached using this less conventional Reversal logic.

The system also uses several filters based on price patterns to trade only when conditions are more favorable for this type of approach.

Performance of the Reversal Strategy on Gold

The strategy generated an Average Trade of approximately $670 and a total Net Profit of $365,000, with profits well distributed across the entire 2010-2026 backtest period. These are impressive results, further supported by positive annual performance in every year except one.

August 2026 Strategy of the Month: Trend Following on NVIDIA Stock

Let’s now turn to the winning strategy, developed by Devis. Congratulations to him for winning the €1,000 Amazon gift card.

This is a multiday Trend Following strategy designed to follow emerging market trends. It operates exclusively on the long side and uses one of the best-known and most reliable trading engines: a Donchian Channel.

The strategy was developed for NVIDIA stock, one of Wall Street’s undisputed stars of the past decade and a stock that has represented the transition into the new era of artificial intelligence better than almost any other.

However, the strategy’s real added value lies in its volatility filter, which can be used to adjust the system’s profitability while improving one of its most important metrics: Average Trade. Positions are then closed after a specified number of bars or when either the Stop Loss or Profit Target is reached.

Trading on NVIDIA: Performance of the Trend Following Strategy on NVIDIA Stock

The system generated a total Net Profit of $525,000 over a historical period spanning 2016 to 2026, using a position size of $100,000 per trade. Since the strategy operates on a stock, the position size can be adjusted to suit the trader’s available capital.

The Average Trade is approximately $856, corresponding to more than 0.8% of the position size. This is a very strong figure and is comfortably large enough to cover the operating costs associated with live trading.

Another noteworthy element is the exceptional consistency of the equity curve, with profits distributed remarkably evenly over time.

This trading system could also potentially be adapted to the corresponding futures contract. On July 27, 2026, CME Group launched Single Stock Futures on more than 50 major US stocks, including NVIDIA.

This is a particularly interesting development because it gives traders access to the many potential advantages offered by futures. We will, of course, continue to keep you updated on this new opportunity over the coming months.

Conclusions on the Strategy of the Month

Congratulations once again to Devis, who earned this month’s €1,000 Amazon gift card with an excellent strategy for trading on NVIDIA.

We hope this article has been helpful and provided you with some useful trading insights.

If your goal is to learn how to develop robust, repeatable trading strategies, studying real-world examples like these is one of the most effective ways to improve.

As an Unger Academy® student, you can learn the Unger Method™, enter the Strategy of the Month competition each month, and put your skills to the test on real markets.

Through the Unger Strategy Club, you can also access the open-source code for the winning strategies and examine their trading logic in greater detail. You can learn more about everything included in the service at http://www.ungerclub.com.

That’s all for today. We’ll see you in the next Strategy of the Month article with more trading insights!

To learn more about the “Strategy of the Month” competition, our monthly contest exclusively for Unger Academy students that awards a $1,000 Amazon gift card to the participant who develops the best strategy using the Unger Method™, click here.

If you would like to learn more about the winners from previous months, click here!