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BOOK YOUR FREE STRATEGY SESSION NOW >>Most trading portfolios contain strategies that trade the Nasdaq and the S&P 500, two of the most important stock indexes in the world.
Our portfolio is no exception, and among the many strategies we use to trade these underlying assets are two that started 2023 on a high note.
Both are trend-following strategies and were developed in 2018, so they have been out of sample for several years... and they continue to perform well!
By watching the video, you’ll discover:
-The rules of the two strategies
-Their recent performance
Enjoy! 😎
Hey, hello everyone, and welcome back to our usual chat that we have about the strategies in our portfolio that have performed the best recently.
One of the coaches at Unger Academy here, and in this new video, we’re going to be looking at two strategies that have been performing pretty well recently in the U.S. equity index market.
Alright, so let's start with the strategy.
It’s a trend-following strategy, just like the other strategy that we’re going to be taking a look at today.
And it was developed for the Nasdaq market in a 15-minute time frame.
This is a strategy that tries to enter the Nasdaq market starting at 11 a.m., so that's eleven in the morning Chicago exchange time, and then runs until 3:30 p.m., exchange time, so pretty near to the close of this market.
The strategy will place long orders on the previous day’s high minus a factor of 10 points while, on the other hand, it will place short orders on the previous day’s low plus, in this case, a factor of 35 points.
The purpose of this is to try and somehow "anticipate" what could be the movement of the market.
As you can see, this strategy has worked well in the last period and is continuing to do so also in 2023, where we saw these two take profits worth $3,000 each.
This strategy was developed in 2018, so it’s been out of sample for a few years now.
And we're going to take a look at the results over the last 365 trading days.
We can say that this strategy continues to perform very well, both on the long and on the short sides.
We know that 2022 wasn’t an easy year for this market.
And so, it's interesting to see a strategy like this that was still able to benefit from the declines in the Nasdaq, which were these -- indeed very significant declines.
As I said, 2023 has also started very well, with two trades closed at a profit, and we hope that this strategy will continue to work that way for the rest of the year.
Alright, now let’s just turn to the next strategy, which was developed for the S&P 500 market.
This time we are using a 30-minute time frame.
And as you can see in the chart, we're using Pivot Points here, and here they're displayed in different colors.
The ones we’re interested in are the light blue and the blue lines.
Of course, the Pivot Points include more levels, but this strategy will enter long on the break of a close above resistance level 1, which is this point, as I said, so let's say the light-blue line, here we go, while instead, we’ll enter short on the breach of a closing price below the level indicated by the darker blue line, which is support level 1.
So, this strategy is also based on a trend-following approach, as I mentioned earlier. And indeed, if the market breaks the resistance to the upside, we’re going to buy.
And, instead, if we break the support to the downside, we’ll sell.
This strategy includes both a take profit exit and a stop loss exit.
The stop loss is set at $1,000, which corresponds to exactly 20 points in this market.
And instead, the take profit is different for the long and the short sides.
On the short side, we have $1,300, and on the long side, we have $1,800.
This is also a very "old" strategy, let’s say, because it was developed in 2018.
And it also performed pretty well in 2022.
I remind you that these results are already net of commission fees and theoretical slippage that we could suffer from trading these markets.
And 2023 is also quite good, even though it’s just started.
We can see that there are only four trades here.
However, it does have a 75% profitability rate. So, 3 out of these 4 trades were closed at a profit, for a total of $3,850.
And so, of course, we hope that this strategy will continue to yield excellent profits for the rest of 2023.
Even if we take a quick look at the equity line of the strategy, we can be quite happy with the start of 2023.
Of course, it’s too early to celebrate, but the path we’ve taken seems to be the right one.
So go and try it out for yourself! These strategies are also pretty easy to code.
Alright, so if there’s anyone among you who's interested in the world of systematic trading, I recommend that you click on the link in the description of this video. From there, you'll be able to watch a free presentation by Andrea Unger, or go and get our best-selling book by just covering the shipping costs, or even book a free consultation call with a member of our team.
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Thank you so much for watching, and we will see you soon in our next exciting 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.
