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 >>Are you looking for some trading ideas for S&P 500?
In this video, we’ll show you two strategies that performed very well in the recent period.
The former is based on a reversal approach, while the latter exploits the Bollinger Band Width to enter the market.
Watch the video to learn more about these strategies and their real performance!
Hello everyone, I'm one of the coaches of Unger Academy and welcome back to this new video dedicated to the analysis of the strategies in our portfolio.
This week we’re going to be talking about two strategies on S&P 500, a future that, over the years, has been producing excellent results with both mean-reverting and trend-following strategies.
So today I'm going to show you two trading systems. The first is a banal reversal approach based on lowd1 and highd1, that is on the high and low of yesterday. And here it is. As you can see, right now, it has an open position that is losing. And maybe here it seems that it even went close to the stop loss level. By the way, despite the strong downtrend movements that occurred on this market last week, it has managed to reach a good profit target even after a stop loss. This kind of strategy has risk-rewards ratios that are strongly oriented towards profit, which means that you risk less than what you could earn.
Here are the other trades, and as you can see, there have been some breakevens. You see them marked with a red line because we’re considering slippage and commissions. These trades produce minimal losses but, basically, these losses only consist of commissions and slippage costs.
Then there are other trades as well. As I said, this is a reversal strategy. So let's go and see the multiday. And here is the strategy report.
This is the equity line produced by the system over the last 360 days of trading, more or less. This is a very good equity, although it’s quite risky and fluctuating.
Here we see a drawdown of more or less $10,000... Ah, it's 13,000. Let's take a look at the close-to-close drawdown. Okay, the close-to-close drawdown is 10,000, but overall you can see a maximum drawdown of 12,000. So from a certain point of view, this is quite a heavy strategy, especially considering how this market has moved in recent years.
In fact, the very high average trade – it's $350 – reflects the high volatility that has been characterizing the S&P 500 over the last two years. So I'm happy to show you this trading idea so you too can try to develop and exploit it.
But let's see the second strategy for S&P 500, which is also performing pretty well. This strategy dates back to 2018 and is a bit more particular than the previous one. This approach exploits the bandwidth of the Bollinger Bands to enter the market with triggers that are also based on the Bollinger Bands.
This system, too, works intraday, so it closes all the positions at the end of the day. Unlike the previous one, however, this strategy is much more scalable. In addition to being intraday, its exits, stops, and profit targets are much shorter and tighter, which means that you can scale this strategy quite well.
Here's the report. The average trade is different from that of the previous strategy. The reason is pretty obvious. Since the strategy closes all the positions at the end of the day instead of keeping them open for several days, the average trade is obviously lower.
What's interesting is that most of the gains of the strategy come from the short trades, whose average trade is significantly higher than that of the long trades. The average trade on the short side is in fact greater than $200, while that on the long side is only about $12.
This is a rare enough thing to see in a market like this, that is, on an equity index that tracks a basket of US stocks.
Here is the equity line of the short trades. As you can see, it is a fantastic line, especially when we compare it – look at this – to a buy and hold approach such as this one. So it's amazing to see how it managed to identify the downtrends of the market successfully.
On the other hand, the equity line of the long trades didn't make any good trades. Most probably, the trigger hasn't been very effective lately. Overall, the equity line had some difficult moments. However, these bad moments are limited. In fact, as you can see here, the equity goes from $100,000 to about $95,000 – its minimum – which means that the drawdown is clearly lower than that of the other strategy, even if they are applied to the same market.
Then it started rising again, and it is still going up.
And that’s all for this video! Thank you all for your attention, 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.
