DAX Turtle-Style Breakout Pyramiding with Fixed Stops

Summary

This experimental DAX daily strategy uses a close-based two-day high as a breakout reference and enters long when the day's high exceeds it. It can add a position when price opens more than five points above the trade price, so exposure may grow as a move develops. Position size is linked to stated capital, strategy profit, a risk fraction, stop distance, and point value, with minimum and maximum size bounds. The rules also apply a fixed stop and close a position after a set holding period.

The author describes frequent stop-outs, trades that close on the entry bar, substantial capital needs, and the patience required to hold through losses. The post claims larger profits alongside these drawbacks, but supplies no performance table, test period, benchmark, or validation method. It is an unfinished optimization experiment, and its code and comments include ambiguities, including how sizing units relate to the stop and how the daily breakout and added entries behave in the platform. The stated risk fraction therefore should not be read as verified realized risk.

Key ideas

• The strategy enters long when price breaks above the recent two-day closing high.
• It adds exposure when the market opens sufficiently above the existing trade price.
• Position sizing is tied to equity, a stated risk fraction, stop distance, and point value, with bounds.
• A fixed stop and a time-based exit govern trade closure.
• The author reports frequent stop-outs and warns that the method needs capital and patience, but gives no validated performance evidence.

Tags

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