Monday DAX 4-Hour Strategy Using EMA Crossovers and a 1% Target

Summary

The document describes a long-only DAX strategy on four-hour bars. It looks for entries on Mondays between 09:00 and 21:00 Berlin time, when the close is below the 50-period exponential moving average and the 1-period average crosses above the 2-period average. Positions use a 1% profit target, with no stop-loss; the author says traders need enough capital to tolerate deep market declines and gives an example capital amount. The author presents it as a possible portfolio addition rather than a strategy suited to every trader.

The document supplies implementation code but no backtest results, trade statistics, sample period, or transaction-cost analysis. Its claim about long-only gains in major indices is broad and does not establish this strategy’s performance. With no defined stop-loss, losses may grow substantially, and the stated capital example does not show how risk was calculated. The entry rules, time window, and target are described, but position sizing and exit handling beyond the target are not fully evaluated.

Key ideas

• The strategy enters long DAX positions on four-hour bars during a Monday time window in Berlin time.
• An entry requires the close to be below the 50-period EMA and the 1-period EMA to cross above the 2-period EMA.
• The strategy sets a 1% profit target and does not use a stop-loss.
• The author emphasizes the need to withstand large declines but provides no performance study for this setup.

Tags

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