SKILLED TRADERS ACADEMY

HOW TO BACKTEST LIKE

ANDREA UNGER
WORLD CUP TRADING CHAMPION

@SkilledAcademy

www.skilledacademy.com

DISCLAIMER
This presentation is just for educational scope. All stocks, ETFs, commodities, Indices,
Forex, Bonds, and other securities mentioned in this webinar are for educational and
illustrative purposes only. If you need professional investment advice, please consult a
registered investment adviser.
Futures, Forex, Stocks and Options carry risk and may not be suitable for everyone.
Any mention of Return of Investment percentages is only indicative of the potential of the
strategy or the system, and is not meant to signify any guaranteed returns.
Success in trading involves a range of human factors like decision making skills, adjustment
skills, emotional control, and risk management and other psychological and behavioral
parameters, all of which are completely in the hands of the individual, and we are not
responsible for the performance of any individual.

Agenda
Who
is
Andrea
Unger
1
How
I
Create
a
Trading
Strategy
2

3 Survey Results
4 Course Presentation

1
Who is Andrea Unger

Who I am and how I won the World Cup Trading

Championships four times

SOME INFO ABOUT ME

Born in Tuttlingen (Germany) in 1966

Graduated cum laude in Mechanical Engineering in 1990 at "Politecnico di Milano".
Member of MENSA
Independent trader since 2001, focused on developing automated trading systems.
Attended a seminar by Larry Williams in 2004
Won the TopTraderCup in futures division in 2005 (performance of over 60% in 3 months)
Won the monthly race of the Tcup organized by the Italian broker IwBank the same year
(performance of over 50% in one month)
Became honorary member of the "National Investment Consultant Organization"
Became graduated "honoris causa" in "Portfolio Management and Asset Allocation.

Published the first book (in Italian) about Money Management in 2006
Member of SIAT (Italian Society of Technical Analysis, a member society of IFTA, International
Federation of Technical Analysts) and part of its technical committee.
Invited as a speaker to several important financial events in Italy (Milan, Rimini, Rome), Germany
(Aschaffenburg, Frankfurt, Lohr am Mein), Czech Republic (Prague), China (Shenzhen, Shanghai,
Guangzhou, Hong Kong, Hangzhou), Malaysia (Kuala Lumpur), Singapore, Dubai and New York.

THE WORLD CUP

TRADING CHAMPIONSHIPS
Traders from all over the world competing in
Championships since 1983.
REAL money year-long event where traders fight to
achieve the highest possible net return by the end of
the competition.
Traders use different approaches, some trade
discretionary, some systematic, others daytrade while
others hold positions overnight.
Without a doubt the most challenging contest in the
world: over the years many famous traders like Larry
Williams, Tim Rea, Kevin Davey, Michael Cook
Won it in 2008, 2009, 2010 and in 2012 with
performance of +672%, +115%, +240%; and +82% in
just one quarter, becoming the first ever trader to win
the competition three years in a row, and four times
overall.

SOME SUCCESS STORIES

SOME SUCCESS STORIES

SOME SUCCESS STORIES

SOME SUCCESS STORIES

2
How I Create a Trading Strategy
Step-by-step process to effective results

IDEAS AND CURIOSITY

Strategies are often imagined as a complex mix of indicators
This is not necessarily true

Strategies are built step by step starting with simple ideas and then building on these
Test show results and results shall be interpreted to understand the markets

AN EXAMPLE
Instrument Dax future (Big Point Value = 25 Euro, Tick Move = 0.5 Points)
Time Frame 60 minutes

First Hour breakout

Close at the end of the day
The purpose of this strategy is to ride intraday trends, we let the market move for the first 60
minutes and then we enter during the second hour if it breaks through the high or the low of the first
60 minute bar

AN EXAMPLE

The results are not

good at all but we
must remember this is
the first basic result,
not even with a Stop
Loss, so lets test this
stopping losing
position by 1000 Euro

AN EXAMPLE

The results improve but we are

still in front of a losing approach,
so now we consider that the
breakouts we used might have
been not effective enough, we
want a breakout that shows the
will of the market to continue in
that direction, so lets try offsetting
the entry levels by a portion of the
first hour range

Short Entry Level

Portion of
Range

\
Range

Portion of
Range

Long Entry Level

AN EXAMPLE

Using different portions of first

hour range to offset entry
levels we see that above a
certain value the strategy
becomes positive, we still
want to trade as much as
possible so we take 0.75 even
though this is not the best as
to final results

AN EXAMPLE

We have now a positive

strategy but an average trade
of only 52 Euro is far too low
on an Instrument such as
Dax Future

AN EXAMPLE

Also the equity line is not the

most exciting as we can see
severe Drawdown periods

Long Entry Level

Long Exit Level

\
Short Exit Level

Short Entry Level

AN EXAMPLE

The new exit technique

shows a decent improvement
in the results, the average
trade is now at 82, still not
enough to go live but it shows
we are moving in the right
direction

AN EXAMPLE

The equity line is still a bit too

much rocking and rolling so
we have to work further

AN EXAMPLE

Looking at the strategy

behaviour on different days of
the week we clearly see
Fridays are losing, there is no
reason to trade on Friday under
this perspective so we keep
this only for the first 4 days of
the week

AN EXAMPLE

The equity line is slowly

improving

AN EXAMPLE

The results are in line with

previous net profit but we can
see how the average trade
improved! We can now add
another filter based on
volatility/indecision of the day
before

DAILYFACTOR

Range

Body

Dailyfactor = Body/Range

We eliminate the days following a

great Body day as normally they are
choppy so we work only if
Dailyfactor < 0.75

AN EXAMPLE

The new volatility filter shows

a clear improvement in the
profits and the average trade
value above 160 Euro is now
at a fully acceptable level for
an intraday strategy

AN EXAMPLE

The equity line as well shows

now an acceptable behavior

AN EXAMPLE

We can now go back to

evaluate what portion of the
first hour range works best as
an offset to entry levels and we
can either keep the existing
0.75 or move to the overall best
of 0.95 (the peak we are
choosing is not really
dangerous as there are good
results both left and right on the
optimization report)

AN EXAMPLE

The 0.95 choice improves

every value on the
performance report with an
outstanding average trade

AN EXAMPLE

\
The final equity line shows a
clean and constant behavior

AN EXAMPLE

3
Survey Results

What are your major pains

The Results
29%

We asked 5 questions
to better understand which
topics are more critical in
becoming a successful trader.

21%

12%

13%

10%

IMPLEMENTATION

PORTFOLIO
OF
STRATEGIES

HOW TO
EVALUATE A
STRATEGY

POSITION
SIZING

BACKTEST

4
Course Presentation

What I designed to help you achieve

trading excellence

Trading was even more teachable

than I imagined.
Richard Dennis

CONTENT
Systematic trading concepts
Types of strategies and how to develop them
Types of markets
Types of orders
Patterns
Market insights

The first step to

trading mastery

First course module:

How to Develop, Optimize and Backtest
an Effective Trading Strategy
4-months long
FB Private Community of Traders
Upload of a new video every week
Special Price:
$997 for a one-time payment
Or
$297 recurring per month
(Price adjustments to Italian version due to VAT)

Possibility to use discount coupon

codes
Launch starts tonight and lasts for a
limited period of time: in 10 days we will
close subscriptions (Nov 15)

Go to www.SkilledAcademy.com and Sign Up!

Direct links:
Course in English: bit.ly/AUweb4NovEN
Course in Italian: bit.ly/AUweb4NovIT

Bonuses
Only if you sign up in the next 3 days
My e-Book:
Profitable Trading Made Possible

10% Discount:
Coupon Code: 10_OFF

(not cumulative with other discounts)

Questions?

The first step to

trading mastery

First course module:

How to Develop, Optimize and Backtest
an Effective Trading Strategy
4-months long
Community of traders
Upload of a new video every week
Special Price:
$997 for a one-time payment
Or
$297 recurring per month
(Price adjustments to Italian version due to VAT)

Possibility to use discount coupon

codes
Launch starts tonight and lasts for a
limited period of time: in 10 days we will
close subscriptions (Nov 15)

If you enjoyed this webinar, please share the

love.
Email: SkilledAcademy@gmail.com
@SkilledAcademy

www.SkilledAcademy.com