Hourly DAX Donchian Breakout Strategy with ATR-Based Stops

Summary

The document describes a rules-based strategy for the DAX GER30 on an hourly chart. It uses the prior period’s highest high and lowest low over a lookback window as breakout thresholds: a long entry follows an upward crossing of the high, while a short entry follows a downward crossing of the low. Positions exit when price crosses the opposite threshold. The channel is extended using average true range, and the distance from the close to the extended channel sets the stop loss.

The description reports that testing used a mini-DAX CFD and assumed a one-point spread. It does not provide performance statistics, a test period, transaction costs beyond that spread, or robustness checks. The rules are therefore a strategy specification rather than evidence of profitability; results may depend on instrument, execution, and parameter choices.

Key ideas

• The strategy enters long or short when price crosses a recent high or low on an hourly timeframe.
• The breakout thresholds use the prior lookback window’s highest high and lowest low.
• An ATR-adjusted channel defines the stated stop-loss distance.
• Long and short positions exit after price crosses the opposite breakout boundary.
• The document reports a one-point spread assumption for mini-DAX CFD testing 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.