Long-Only DAX Reversal Strategy Using Bollinger Bands and RSI

Summary

This is a long-only reversal strategy described for the DAX or GER30 on an hourly chart. It calculates a lower band from a 100-period moving average minus one 10-period standard deviation. A position is opened when price falls below 97.5% of that band, RSI over 10 periods is below 20, and the 200-period average is lower than it was two bars earlier. The position is closed after at least two bars, with a 2.5% loss stop specified.

The author says the system is traded live and reports experience running multiple strategies, but provides no return series, drawdown, transaction costs, or independent verification. The brief holding rule and stop are described, while the entry condition attempts to buy a sharp decline despite a falling long-term average. Results may depend on instrument, timeframe, execution, and parameter choices; the document offers no evidence that the approach generalizes beyond its stated market context.

Key ideas

• The strategy seeks long entries after an unusually deep move below a lower volatility band.
• Entry also requires low RSI and a declining 200-period average.
• Positions are exited after at least two bars, with a specified percentage loss stop.
• The example is framed for hourly DAX or GER30 trading and does not establish broader applicability.
• The author gives a live-use claim but no detailed performance statistics or independent evidence.

Tags

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