The Best Strategy I Don’t Trade (Futures)

Jan. 16, 2023

I have an embarrassing amount of systems lying around on my various platforms.

If I get a good idea (or read one), I test it, and then I leave it there to do whatever it wants and come back to it later.

Though a bit hoarder-ish, it’s accidentally the best testing method there is. Nothing beats just watching a system trade for a year.

Sometimes, though, it makes me wonder what’s wrong with me. Why am I not trading these systems?

Especially since my new motto is “Trade ’em all!”

Here’s the reason I don’t trade this system. It’s in Futures.

I’ve never traded a long-term system in Futures. I have a day-trading robot for the ES, but I’ve never held any futures robot over weeks and months.

So I don’t know how hard or obnoxious rollover time is. I feel like I would not like having to turn off the robot, close the position, and then re-enter it manually on the new updated futures contract. It kind of defeats my overwhelming desire to use robots. Trading rollover is basically discretionary trading, in my mind.

Of course, it may be easy and it may not even happen that much (or at all).

Nonetheless, I haven’t done any long-term trading with Futures. But here’s a strategy on Gold I like a lot. It’s Futures Week, in case you couldn’t guess.

405-Minute Gold Breakout Strategy

• Long Entry: When price breaks above the high of the past 50 bars.
• Short Entry: When price breaks below the low of the past 50 bars.
• Stop: $1200 per contract
• Target: $3000 per contract
• Move to Break-Even: after $700 per contract of profit

Here’s the Report trading 1 contract each time since 2003:

And here’s the Equity Curve:

It’s not perfect but the testing looks quite good.

And one last concern. The move to break-even is a little tight. I’m not sure how that would work in real life.

All that said, I may begin trading this at some point this year. As I get more acquainted with Futures, anything’s possible.

In our next Newsletter, we’ll look at another system I probably should have been trading.

Talk to you soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.