Opening-Range Breakout Strategy for DAX and Other Equity Indices

Summary

This intraday breakout strategy defines a range from 09:00 to 09:30 and applies it to the DAX on a 15-minute timeframe. It places buy-stop and sell-short-stop orders at the range high and low, respectively, during the subsequent session. The stop loss is set to the opposite side of the range, and the profit target is the same distance as that stop. The example also limits order accumulation and closes positions by the end of the trading day.

The author reports a positive but irregular backtest: with the original contract size, maximum drawdown was €6,548 from an initial €10,000 and annual capital gain was 51.80%. Halving contract size reduced the reported drawdown to €3,274 and annual gain to 25.90%. The post says the approach also worked on the CAC 40 or possibly other indices, but performed poorly on forex. These are author-reported results without further test-period, cost, or robustness details, so they do not establish future performance.

Key ideas

• The strategy trades breaks above or below the 09:00–09:30 range on a 15-minute DAX chart.
• Entry orders sit at the range high and low, with a stop at the opposite range boundary.
• The profit target equals the stop distance, and positions are closed by the end of the session.
• The author reports positive returns alongside substantial drawdown and an irregular growth curve.
• The post reports better applicability to equity indices than forex, without detailed robustness evidence.

Tags

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