DAX Donchian Breakout with MACD, RSI, and Moving Average Filters
Summary
This strategy describes an hourly DAX breakout approach. It enters long when price crosses above a prior Donchian channel high, with the MACD histogram rising and nonnegative, RSI above a threshold, and price above a moving average. A stop is placed at the lower Donchian boundary. Short entries use the reverse direction: price crosses below a shorter channel low, MACD is falling and nonpositive, RSI is below a threshold, and price is under a long moving average; the opposing channel boundary sets the short exit stop.
The author presents the system as a simple strategy and says it seems effective, but supplies no performance figures, backtest results, or risk analysis. The stated context is DAX hourly trading with tick-by-tick data and a specified spread assumption. The parameters are presented as DAX-specific, so performance in other markets or under different execution conditions is not established.
Key ideas
- The system combines Donchian channel breakouts with MACD, RSI, and moving average filters.
- Long entries require an upward channel break and bullish readings from all three filters.
- Short entries use a downward channel break with bearish MACD, RSI, and moving average conditions.
- Donchian channel boundaries provide stop levels for both directions.
- The author gives no quantified evidence for profitability or robustness beyond stating that the strategy seems effective.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.