You are here

The Daily DAX trading strategy

Day trading can be simple. The Daily DAX strategy was designed to illustrate this premise. Two basic technical  analysis concepts are combined with the awesome testing and optimization power of the NanoTrader platform. In addition the NanoTrader provided a precise hour to open a position. Traders don't have to sit behind their screen and wait for a signal. Like all the integrated strategies in the NanoTrader platform, Daily DAX is free.

These are advantages of the Daily DAX strategy:

  • Trades a popular market index.
  • Simple and to the point.
  • Uses only key technical analysis concepts.
  • Good back-test results
  • Free in NanoTrader

Free trading demo futures, CFD, Forex


1. BACK TO BASICS

Only two key technical analysis concepts are used:

  • Determine the direction of the trend.
  • Determine the strength of the trend.

A simple moving average is used to determine the direction of the trend. Another stalwart, the ADX indicator, is used to measure the strength of the trend. The NanoTrader calculated the historically 'perfect' point in time to open a position for this combination of indicators as being 13h30. if the conditions are met, a position is opened at this point in time and only at this point in time.

2. OPEN AND CLOSE A DAX POSITION

A long position is bought at 13h30 if the trend is bullish and strong. A short sell position is sold at 13h30 if the trend is bearish and strong. If the trend is not strong, the trader does not open a position.

This example shows a buy signal at 13h30. The trend was positive (price above the moving average – purple line) and strong (ADX at 50 i.e. above the dotted line indicating 25).

DAX trading

Free NanoTrader trading demo

This example shows a day without a signal. The trend was too weak (ADX below 25).

DAX trading

Free NanoTrader trading demo

The position is automatically closed at 21h30 by the flat filter if the TradeGuard is activated. The Daily DAX strategy has no stop loss or take profit. If wanted, the trader can add these manually or via the TradeGuard in NanoTrader. This is the 10-year back-test on the DAX Future:

DAX trading

Read more about the Daily DAX strategy.


The opinion of a professional trader...

Trader opinion NanoTrader

Visit the website of the legendary broker WH SelfInvest


Investui

Platform demo

Try a free real-time demo of the NanoTrader Free  (CFD, forex) or the NanoTrader Full (CFD, forex, futures & stocks).

Trading library

Download free e-books and reports from the trading library (Deutsch, Français, Nederlands, English).

Trading videos

Charting, strategies, automated trading, backtesting, playback... watch these videos and become a platform master.

Trading webinars

Join our free trading webinars and seminars (Deutsch, Nederlands, Français).

Broker

WH SelfInvest offers NanoTrader. This broker serves traders from offices in GermanyFranceSwitzerlandBelgiumLuxemburg and the Netherlands.

The spectacular SignalRadar

SignalRadar shows live trades being executed by various trading strategies.

Copyright 2016-2019. WH Selfinvest, 5 rue Thomas Edison, 2nd Floor, 1445 Luxembourg-Strassen, Luxembourg

Back to Top