Four-Hour Bund CFD Strategy Using a Smoothed Filter and Trailing Stop

Summary

This document describes a long-only strategy for a Bund contract CFD on a four-hour chart. Entries are triggered when a normalized, smoothed price-action indicator reaches either extreme threshold or crosses above zero, with Monday entries excluded. The position uses one contract. Exits combine a trailing stop that follows the highest close after a specified gain, a fixed loss stop, and a profit target. The document also supplies the indicator calculation, which smooths the change in closing price over a lookback window and normalizes it against a decaying measure of recent peaks.

The stated backtest setup spans mid-2010 to the present and assumes a two-point spread, but no performance statistics or trade analysis are provided. The rules are therefore a strategy specification rather than evidence of profitability. The method is long-only despite a trailing-stop comment mentioning long and short positions. Results may depend on contract specifications, spread, execution, and implementation details, and the supplied indicator and strategy would need careful validation before use.

Key ideas

• The strategy trades Bund CFDs long-only using a four-hour chart and a smoothed normalized price-action signal.
• Entries follow indicator extremes or an upward zero crossing, except on Mondays.
• A peak-following trailing stop works alongside a fixed loss stop and a profit target.
• The document states a backtest period and spread assumption but provides no performance results.

Tags

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