This month, the Unger Academy hosted its July Strategy of the Month contest. This contest is for students who submit their trading strategies to compete for a €1,000 Amazon gift card.
One standout strategy focused on the Mini S&P 500. This strategy uses pivot points to calculate trading levels daily. During certain hours, it checks if the price crosses these levels. If the price goes below a pivot point, it counts the bars and goes short. If above, it goes long. This mix of trend-following and mean-reverting strategies exploits short breakouts and market reversals.
The performance of this system is impressive. The long side performs particularly well. The short side struggles a bit but still earns a lot. Despite some hard times in 2016 and other years, the strategy has done well from 2018 onward. The average trade, without costs, is around $190. This easily covers any fees.
Another interesting strategy works on the DAX index. This mean-reverting strategy sells high and buys low. It sets levels at the previous day's high and low. When the DAX hits these levels and reverses, it makes trades. The results show a regular equity curve, though some years were weaker. Despite some recent struggles, the strategy continues to perform well. Built on an Unger Academy template, the student did not write a single line of code. The average trade is €860, which is more than enough to cover costs.
The winning strategy of July's contest also worked on the Mini S&P 500. It uses a "ping-pong" effect between set levels after a large daily move. High volatility days signal indecision, and the strategy calculates levels based on the day's highs and lows. It uses a multiplier to set short and long levels. Entries are limit orders, so there is no slippage. This strategy, though old, still makes consistent profits.
This winning strategy impressed everyone. It shows how logic from 2013-2014 can still be profitable today. Each session, the strategy sells high and buys low based on the day's movements. The average trade size is large, and yearly results are positive, even with costs included.
Congratulations to Henry, the student who created this winning strategy. Such contests inspire many to create new trading systems and compete for prizes.
