Long-Only TMA Channel Strategy for DAX

Summary

This document describes a long-only strategy for the DAX on a four-hour chart. It builds a triangular moving average style center line from recent closes, then sets a lower channel band by subtracting an average true range measure multiplied by a fixed factor. The code uses fixed parameters for the channel and limits new entries to specified times on weekdays.

A long position opens when the averaged close crosses above the lower band. It exits when the averaged close crosses above the middle line, with fixed percentage stop-loss and profit-target orders as additional safeguards. The document supplies implementation logic, but no backtest, performance statistics, or comparison with alternatives. It also notes that the indicator was adapted from an external source, and the example is described as working on a one-euro DAX contract. The evidence is therefore a strategy specification rather than evidence of profitability; its fixed settings and timing may not generalize across markets or periods.

Key ideas

• The strategy uses a weighted average of recent closes as the TMA channel's middle line.
• The lower band is the middle line minus an ATR-based range scaled by a fixed multiplier.
• A long entry occurs when the averaged close crosses above the lower band during selected weekday times.
• The position exits on a cross above the middle line, with percentage stop and target orders as safeguards.
• The document provides no backtest or performance evidence.

Tags

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