Gas Algorithmic Trading: Jose Gas Natural

Jose Gas Natural by Liderbot stands out in algorithmic trading, available on iSystems, compatible with iBroker and NinjaTrader brokers.




Introduction to Natural Gas Futures (NG)

Natural Gas Futures (NG), traded on the New York Mercantile Exchange (NYMEX) division of the CME Group, provide a vital tool for market participants looking to engage with the energy sector, specifically within the natural gas market. Each contract is denominated in U.S. dollars (USD) and represents 10,000 million British thermal units (MMBtu) of natural gas, with price fluctuations of $0.001 per MMBtu. This guide is designed to explore the essential attributes, benefits, and strategic considerations critical for effectively participating in the Natural Gas Futures market.

Essential Attributes of Natural Gas Futures

Natural Gas Futures enable traders and investors to speculate on the future price movements of natural gas or to hedge against potential volatility in energy prices. The contract size and minimal price increment cater to a wide range of market participants, from energy producers and distributors to speculative traders.

Trading on the NYMEX ensures participants access to one of the world's leading energy markets, offering high liquidity, transparent pricing, and efficient execution. This environment is crucial for managing risk and capitalizing on opportunities in the fast-paced energy sector.

The futures are settled in cash, offering a streamlined way for traders to settle their positions without the logistical challenges associated with the physical delivery of natural gas. This feature is particularly appealing to speculative traders and those looking to hedge financial exposure to energy prices.

Benefits of Trading Natural Gas Futures

Market Access: Natural Gas Futures provide a direct mechanism for gaining exposure to one of the most important energy commodities, allowing participants to respond swiftly to changes in natural gas prices driven by supply and demand dynamics, geopolitical events, and seasonal patterns.

Liquidity: The Natural Gas Futures market is known for its deep liquidity, facilitating the efficient entry and exit of positions. This liquidity is essential for minimizing trading costs and executing large orders without significant price impact.

Hedging Opportunities: For businesses with exposure to natural gas prices, such as utilities, manufacturers, and energy companies, Natural Gas Futures serve as an effective tool to hedge against price risk. This capability is crucial for budgeting and financial planning within sectors reliant on natural gas.

Speculative Potential: The natural gas market's inherent volatility, influenced by factors such as weather conditions, storage levels, and changes in production technology, provides fertile ground for speculative strategies. Traders can leverage these market dynamics for potential profit, capitalizing on price movements.

manual trading vs algorihtmic trading
manual trading vs algorihtmic trading
chart trading
chart trading

Jose Gas Natural algorithmic trading system

In futures trading, automated strategies have proven to be valuable for their ability to execute trades using algorithms. A notable example is the "Jose Gas Natural" strategy, developed by Liderbot and designed for use through the isystems trading platform across multiple brokers such as ibroker or ninjatrader.

Costs of Jose Gas Natural Algorithmic Trading

This overnight strategy, also known as a swing strategy, has been developed by Liderbot. Liderbot offers an accessible and effective solution for traders looking to diversify their portfolios using advanced algorithmic trading software for natural gas trading. The cost of renting the license for the "Jose Gas Natural" strategy is $35 per month, providing traders with an affordable way to leverage sophisticated algorithmic trading tools in the natural gas market.

Historical Results of Jose Gas Natural

Jose Gas Natural has analyzed 4,715 sessions, achieving a 48.3% win rate and accumulating a total profit of $196,957 (backtest data), demonstrating the effectiveness of this strategy in the natural gas market through algorithmic trading.

Ability to Beat the Market Trading with Gas Software

This strategy has proven its ability to generate significant returns, indicating its suitability for investors with different levels of investment capacity since its launch date on 07/06/2017, and with a verified profit of $38,604.

Statistics of Jose Gas Natural Algo

In the domain of trading analysis, comprehensive statistics provide valuable insights into the performance of trading software over a specified period. This overview focuses on the statistics from 12/01/2005 to 03/07/2024.

Performance Metrics 12/01/2005 - 03/07/2024

Here are the performance metrics for the trading software during the specified period:

  • Analyzed Sessions: 4715

  • Winning Sessions: 48.3%

  • Worst Drawdown: ($12,850) (07/14/2008)

  • Total Profit/Loss: $196,957

  • Current Run-up since DD low: $102,749

  • Current Drawdown: ($12,347) (12/14/2022)

  • Annual ROI: +15.4%

  • Best Session: $14,038 (12/23/2005)

  • Worst Session: ($6,888) (07/11/2008)

  • Profit Factor: 1.51

  • Winning Session Average: $977.28

  • Losing Session Average: ($605.27)

  • Commission per side: $12.50

  • Percentage Time with Open Position: 20.9%

  • Slippage per side: -0.00152 ($15.20)

  • TM Rating: 2/3

  • Sharpe / Sortino Ratios: 0.8875 / 2.2084

  • Sterling / MAR Ratios: 0.5280 / 0.4141

These statistics provide a comprehensive overview of the trading software's performance during the specified period. While they offer valuable insights, it's important to remember that past performance does not guarantee future results.

a tall building with a red light at the top of it
a tall building with a red light at the top of it

Jose Gas Natural algorithmic trading system

In previous posts, we've discussed a system for Crude Oil and for gold. Below, we display the images. What would happen if we combine the 3 strategies into one?

deja vu deja vu

Algorithmic trading Software Porfolio

Let's create an algorithmic portfolio with the intraday Crude Oil Hs. the swing strategy Jose Gas natural. and the swing strategy for gold, Deja vu

Equity curveEquity curve
max drawdownmax drawdown

Equity Curve and Drawdown: 2017 to 03-08-2024

Trading Systems Portfolio: Jose Gas Natural & Crude Oil HS & Deja Vu

Generated with Lider Insights since 2017

The combination of the portfolio from the aforementioned three strategies has resulted in a net outcome of $296,126 from 2017 until today, March 8, 2024, with a maximum drawdown of $20,275. This net result accounts for contract execution fees, monthly rental fees for the strategies, and slippage. It's important to remember that past returns do not guarantee future results, and the worst streak of a system or portfolio is not the worst it has experienced but the one that may occur next. Welcome to the future of investments. This is an example of an Algorithmic Trading Software Portfolio for financial futures, available through iSystems on major global financial futures brokers.

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