DAX One-Minute Breakout and Fakeout Strategy Using the Overnight Range

Summary

This DAX strategy uses one-minute bars and the overnight high-low range to place conditional orders around the opening period. It records the overnight extremes shortly before 08:00 GMT+2, then places entries just beyond and inside each boundary, with the gap set as a fraction of the range. Depending on whether price is inside or outside the range, orders are stop or limit orders. Opposite-side entries can reverse or close a position, and the system limits trading to four opportunities per day. A range-based stop and profit target are combined with position sizing tied to account equity and a specified risk fraction.

The author emphasizes reacting to price direction and limiting risk, and mentions adjusting the target multiple and accounting for changing spreads. However, the text reports no backtest results, and the stated settings and code may not align perfectly. It is a proposed system the author says they intend to review before live trading, so its robustness and live performance are unestablished.

Key ideas

• The system places conditional orders around the overnight high and low after measuring the range before the session opening.
• Order type and direction depend on whether price is within or beyond the range boundaries.
• The strategy limits daily entries and sizes positions according to equity and a stated risk fraction.
• Stops and targets scale with the measured range, while the author also accounts for spread changes.
• No performance results are supplied, and the author presents the system as needing review.

Tags

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