DAX Intraday Rebound Strategy Using Donchian Levels and MACD

Summary

The strategy seeks long trades during a rebound after a bearish move. It uses a Donchian channel to divide the recent price range into four sections, then places a buy stop near the first level above the channel low when price remains below that level. A minimum channel width filters out narrow ranges, and MACD must be rising. The proposed profit target is a configurable level higher in the range, while the channel low serves as the stop. Trading is restricted to the stated intraday session, and the example is long-only.

Position size is adjusted through a limited progression: it increases after losses, decreases after wins, and is capped. The author reports example drawdowns and gains for two starting sizes, but provides no test period, transaction-cost assumptions, benchmark, or independent validation. The author also cautions that progression schemes can fail. The results are therefore specific claims from the post, not evidence that the method will perform similarly in other samples or live trading.

Key ideas

• The entry seeks a rebound from the lower portion of a recent Donchian range.
• A rising MACD and a minimum channel width are required for the long setup.
• The channel provides a proposed profit target and a stop reference at its low.
• The example increases size after losses and reduces it after wins, subject to a cap.
• Reported performance figures lack enough testing detail to establish robustness.

Tags

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