Trading Strategies for GOLD Futures: $45,000 Earned in the Last 2 Years!

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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 $45,000, net of commissions and slippage costs.

Both strategies were developed in 2017 and have been out of sample for several years.

The first is a bias strategy that exploits the recurring price movements of Gold, while the second one is a mean reverting strategy.

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! 😎

Transcription

Strategies on Gold that earned $45,000 in 2 years!

Hey everybody and welcome back. Today, as usual, we’re going to evaluate the strategies in our portfolio that have performed the best over the last period.

One of the coaches at the Unger Academy here, and in this brand new video we’re going to be looking at two strategies that have performed well in the Gold market recently, the futures that replicate the price movement of Gold.

These two strategies that we are about to look at together have generated gains of about $45,000 over the last two years.

Strategy #1 - BIAS (Exploiting daily recurring movements)

Now, we’re going to look at the equity line of a bias strategy in the Gold market, that has been out of sample since 2017.

So we could say roughly from this point here.

And you can see, this strategy maintained excellent gains from the in-sample period, even in the post-development period.

The average trade of the system is $127.

In this backtest, we have already considered the commission costs and slippage incurred in live trading in the Gold market.

Specifically, we have considered a cost of $30 per trade, which takes into account one tick of slippage when opening the trade, worth $10, one tick of slippage when closing it, worth another $10, and finally commissions.

So, we have an estimated cost of $30 when trading this strategy with one contract.

We can see that the system trades a lot. Since 2010, it has made 2369 trades with an average trade of $127. $133 were on the long side and 121 on the short side.

If we look at the annual results, we see that this system suffered a minor setback right in the year after its development, with a loss of $1,280.

In the following years, especially 2021, we made significant returns with this strategy, even well over $26,000 in 2021.

The year 2023 also started on the right foot, and we see that the strategy has brought home almost $10,000 in the last 104 trades, which is undoubtedly a satisfying result.

Let’s also look at the results from, let's say ... the last two cumulative years ...

Let's take September 2021, and we can see that the strategy has made about $24,000 over the last two years.

Latest trades from Strategy #1

This is a strategy that’s working very well and has proven is goodness recently.

As I mentioned, it is a bias strategy, so it places entry orders at certain times of the day.

In particular, long trades are placed in the second part of the trading session.

While, instead, short trades tend to be made in the early part of the session.

In this case we can see that the strategy made two outstanding long trades. We see that it entered at a particular time, 10:05 a.m., New York exchange time.

And the position was kept open until 2 a.m., again New York exchange time, the next day, and took home a $530 profit.

The next day, again at 10 a.m., the system entered, only to close its position again at 2 a.m. the next day, taking home a profit of $830.

Strategy #2 - MEAN REVERTING (Entering counter-trend)

Let's move on to the second strategy I want to show you. This is a different strategy from the one we’ve just seen.

It is a mean-reverting strategy and in the last few months and especially in the last two years, so from September 2021,

this strategy has brought in about $20,000. That’s the result of exactly 85 trades, so with about 40 trades per year, the strategy has brought in a total profit of $20,000.

This is a strategy that has a good equity line, like the previous one.

This strategy was also developed in 2017. After a successful post-development period, it has experienced a decline in the years between 2018 and 2020.

And then, it recovered from March 2021 until today, where we can see the strategy has reached its equity peaks.

Again, the average trade is around $120, but the strategy is making fewer trades compared to the system we saw before.

In this case, it’s only 600 compared to 2300 operations in the previous system.

And, of course, this strategy has also had a very good out-of-sample period.

And it’s certainly a strategy you can add to your portfolio to better diversify your strategies.

Latest trades from Strategy #2

Let's also take a look at the trades that this system makes. Here, we see a trade that was closed at breakeven, so let's say that it closed at -$30 considering the commission costs.

If we zoom out a little bit and go back, we can see two short trades opened on August 22 and August 24 respectively, and as I mentioned earlier, they were against the trend.

We saw the market go up, and then at some point, when the market went down, the strategy here was to try a short entry.

In this case, the trade was then closed at a profit of $110, so basically a closed position which was more or less breaking even.

We also see another short, which was a bit more substantial.

Again, the market was going up, and we saw a fade breakout of the previous day's high.

In other words, the market returned to the level it had just broken through.

And lo and behold, the strategy saw the conditions met to open a short position.

This position initially recorded a huge gain, then the market came back around the entry level of the strategy, only to fall again and close towards the end of the session with a profit of $410, as mentioned before.

Tips for your trading

Alright, so at this point I’d just like to remind you that if you too would like to learn how to create systematic trading strategies like this, but don't have the skills, click on the link below and watch a video by Andrea Unger or get our best-selling book by just covering the shipping costs. Or you can even book a free call with a member of our team.

If you liked this video, please leave us a Like, subscribe to our channel and click the notification bell to stay updated.

See you next time!

Need More Help? Book Your FREE Strategy Session With Our Team Today!

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.

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Andrea Unger

Andrea Unger

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.