A Seasonal DAX40 Late-Lunch Overnight Trend Strategy

Summary

This document describes a long-only trend-following setup for the DAX40 on a 30-minute chart. It checks whether the close is above a short exponential moving average, then enters at a specified late-lunch time in the Europe/Berlin time zone. The position is closed the next morning. The rules also skip summer months and Fridays, while a profit target is included in the example implementation.

The author suggests the timing may benefit from moves in US equity indices around their market open, and frames the seasonal and weekday filters as ways to avoid weaker periods and weekend exposure. The document offers no backtest results, sample period, transaction-cost assumptions, or benchmark, so the proposed explanation and filters remain unverified. The rules are presented as a simple strategy idea rather than evidence of a persistent advantage.

Key ideas

• The setup enters long when the DAX40 is above an exponential moving average at a fixed afternoon time.
• Positions are held overnight and exited the following morning.
• The rules exclude summer months and Friday entries.
• The author links the timing hypothesis to moves in major US equity indices.
• No performance results or testing methodology are supplied.

Tags

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