A DAX Long Strategy Combining Detrended Price and Repulse Indicators

Summary

The document describes a long-only strategy for the DAX using four-hour bars. It combines a detrended price oscillator with a Repulse indicator intended to capture candle buying and selling pressure. The system opens a long position when both readings exceed 0.1 and exits when either falls below that threshold. The example limits entries and exits to weekdays during specified Berlin-time hours, uses a one-contract position, and includes a percentage stop-loss and profit target. The author also notes that the stop and target can be omitted in favor of indicator-based exits.

The author claims the approach performs better than the DAX itself, but gives no return series, test period, costs, drawdown, or comparison methodology to substantiate that statement. The document acknowledges weaknesses in abrupt reversals and range-bound markets, which are common concerns for trend-following rules. Its parameter choices, timing conventions, and results are presented as a single example and should not be assumed to generalize across instruments or market regimes.

Key ideas

• The strategy trades long on four-hour DAX bars when both DPO and Repulse readings exceed 0.1.
• It exits when either indicator falls below the stated threshold.
• The example restricts trading to weekdays and specified Berlin-time hours.
• A one-contract position and percentage stop and target are included in the example.
• The author reports better performance than the index but supplies no supporting test data or methodology.
• The strategy may struggle during sudden reversals and range-bound periods.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.