Contrarian DAX Short Accumulation with Supertrend and Profit Exits

Summary

This user-submitted DAX mini strategy opens a short position when one Supertrend reading is above another, then adds to the short if the position’s percentage performance falls past a specified loss threshold. It exits the accumulated position when performance exceeds a small profit threshold. The example uses fixed-size orders, permits order accumulation, and restricts activity to a daily time window. The author says the indicator is secondary and suggests the same approach could be adapted to long trades or other timeframes.

The author describes the apparent results as attractive but explicitly acknowledges potentially high drawdown and says no money management is applied. The post supplies strategy code but no quantified test results, market conditions, or risk controls. Averaging into a losing short can increase exposure as losses grow, while a profit threshold does not cap adverse movement. The stated thresholds and schedule are a personal example, not evidence of robustness or a complete risk-managed system.

Key ideas

• Enter a short position when the two Supertrend readings satisfy the stated comparison.
• Add another fixed-size short when open-position performance crosses the loss threshold.
• Exit when the position reaches the specified profit threshold during the trading window.
• The author warns of high potential drawdown and says the example has no money management.
• No quantified test results or evidence of robustness are provided.

Tags

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