Today we want to show you two trend-following strategies that are performing very well on Nasdaq futures, one of the most important stock indexes in the world.

Both strategies were developed in 2018 and made a staggering $110,000 in the last two years by trading only one contract!

One of the most interesting aspects is that over the years, these strategies haven't only done very well on the long side (which is quite evident in a mostly bullish market) but also on the short side, taking advantage of the bearish trends of 2022.

Watch the video now to learn more!

Enjoy! 😎

Transcription

Introduction

Hello and welcome back to the appointment with our portfolio strategies that have shown the best performance in the last period.

One of the coaches at the Unger Academy here and today we're going to look together at two strategies on the Nasdaq that have performed very well.

Just keep in mind that both of them have been on the market since 2018, and in the last two years, they have collectively earned more than $110,000 on a single contract.

Let's look at them together now.

First Trend-Following Strategy on Nasdaq

This is the first strategy developed on Nasdaq futures with a 15-minute time frame.

Let's take a look at the metrics.

It made a net profit of about $103,000 with a maximum drawdown of about 9000, with a ratio of 12.

We see that the equity is going up, and it's going up very evenly. Both on the long side, which was to be expected because the instrument was very bullish throughout the analysis period, and on the short side, which we are very happy about because, for example, as we see in this last part, it was able to weather the bearish phase that occurred last year, in 2022.

The average trade is $118-119. We must remember that this is an intraday strategy, so it only stays in the market for a few hours.

We can read about that here. The average number of bars per trade is 20. With a 15-minute time frame, we are talking about 5 hours.

So, we expose ourselves to minimal risk because we are only in the market for a few hours.

Let's take a look at the annual strategy report.

We have consistently positive years with a pretty consistent average trade. Let's keep in mind that this is an intraday strategy.

Now let's look at how it has performed over the last 24 months, from May 2021 to May 2023.

The system has made a total profit of $36,000. As a reminder, we are working with a single contract.

Let's go directly to the chart to see how this system works.

So, this is a trend-following strategy, which means it follows the direction of the prices, and it works as follows.

At the beginning of each session, we set two levels, an upper and a lower, which are calculated as the opening value, to which we add or subtract a value that depends on the instrument’s volatility.

We enter the market if the price rises above the upper level or falls below the lower level during the session.

In this case, the price broke down from the lower level, and we entered the market.

For the long side only, we have also introduced a short-term momentum condition that allows entry only when this indicator is above a certain threshold.

Why did we do that? Because we want to ride the rising prices and this indicator helps us to pick better.

The momentum used simply calculates the difference between the current price and the price of about fifty previous bars.

The positions are then closed at the end of the session or with classic monetary exits in the form of stop loss and take profit, in case they occur before the end of the trading day.

Second Trend-Following Strategy on Nasdaq

We have now moved on to the second strategy, also developed for Nasdaq futures with a 15-minute time frame.

Again, we are dealing with a trend-following strategy, so it tends to follow the direction prices are taking.

Let's look at the metrics. It made a net profit of $200,000, while the maximum loss was about $15,000. The ratio of the two is greater than 10. Indeed, we have a value of 13 which is excellent.

The equity line is really good, and I would say, very upward.

I'd like to point out that the strategy came to the market at about that time, and it has performed exceptionally well from then on.

We would have expected that on the long side, but the strategy has done very well also on the short side.

Let's look at the average trade, a critical parameter in strategy evaluation.

In this case, it's over $400, a very high value for this instrument.

The number of trades is 500 in the considered historical range, which is lower than the previous strategy.

I'd like to point out that this is a multiday strategy, so it stays in the market for more than one day. We can also see that by checking this parameter.

As you remember, in the previous strategy, the average number of bars in a position were 20, while in this case, it's 200, so about 10 times the previous duration.

Let's take a look at the annual report of the system. It has been positive since it went live, and since 2018 it's been very, very good.

Let's have a look at the Monthly rolling report. We can review the last 24 months from May 2021 to May 2023: The system would have made $74,000 profit, which, together with the $36,000 of the previous system, gives us the $110,000 that I told you about.

Now let us see a trade on the chart to better understand how it works.

The logic here is also pretty simple. At the beginning of each session, we set two levels calculated starting from the high and the low of the previous session.

The upper level is set ten points below the previous session’s high.

This is the high of the previous session. And this is the level ten points below.

On the other hand, the lower level is set 35 points above the previous day’s low.

So that's the low from the previous day, and the level 35 points above that.

If we go above one of those levels during the day, like in this case where we fell below the lower level, then we enter the market, and sort of follow the direction prices have taken.

This strategy allows positions to run up to a maximum of eight days and uses the classic monetary exits in stop loss and take profit, which are triggered if these levels are reached before that time.

Conclusion

Alright, so today, we've seen two strategies for the Nasdaq that exploit an elementary logic: to set two levels above and below the price and wait for the market to take a certain direction to take advantage of the trend.

In short, nothing complicated. Remember that simplicity always pays off in trading, and the results of these two strategies are an example of that.

If you want to learn how to create trading strategies like these yourself and thus begin your journey as a systematic trader, click on the link below.

This will give you access to a free video of Andrea Unger, get our best-selling book "The Unger Method," paying only the shipping costs, or book a free consultation with a member of our team.

It's time to say goodbye!

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Thanks for watching, and I will see you next time!

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