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Multi-Timeframe DAX Strategy with EMA and RSI Crossovers

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Summary

This strategy trades the DAX using signals calculated on an hourly timeframe and entries managed on a one-minute chart. A long signal requires a bullish candle pattern, a fast EMA crossing above a slower EMA, and RSI crossing above its midpoint; the short setup reverses those conditions. The author uses 5- and 10-period EMAs and an 8-period RSI, explaining that the RSI period was changed during optimization. Trading can also be restricted by hour, weekday, or month, with configurable targets and stops.

A custom trailing stop begins after a specified profit threshold, then raises the protected share of gains in steps. It can reference closing prices or candle highs and lows, and checks broker distance constraints when placing exits. The document describes the implementation and its configurable mechanics but gives no out-of-sample results or evidence that the optimized settings generalize. It is a single-instrument, platform-specific example, and the document does not establish performance after costs or across other market conditions.

Key ideas

  • Hourly EMA and RSI crossover signals are used to direct entries on a one-minute DAX chart.
  • Long and short entries also require directional candle patterns.
  • Time filters allow trading to be restricted by hours, weekdays, and months.
  • The trailing stop progressively protects more of an open profit after a threshold is reached.
  • The author reports parameter optimization but provides no performance evidence or robustness analysis.

Tags

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