Trading DAX Big Price Levels with a Short-Term Entry Filter

Summary

This experimental strategy enters long or short trades when the closing price crosses a level on a configurable price grid. It pairs those crossings with a short-term price condition: a long setup requires the current high to be below the highs of the previous two daily bars, while a short setup requires the current low to be above their lows. The example is configured for five-minute DAX data, with trading entries limited to 9:00–18:00 and one trade in each direction per day. It uses a one-unit position and specifies percentage stop, trailing stop, and profit-target settings.

The author describes the grid spacing as adjustable, with examples using 100-point and 50-point levels, and says the approach is not intended for optimization. Positions may remain open overnight, but the strategy closes them at the stated end-of-day time and on Fridays. The document provides configuration and code, but no backtest results or evidence that the strategy is profitable. Its DAX example and platform-specific implementation limit what can be inferred about performance elsewhere.

Key ideas

• The strategy looks for close-price crossings of configurable grid levels to trigger potential entries.
• Long entries require the current high to be below the previous two daily highs, while short entries require the current low to be above the previous two daily lows.
• The example limits entries to the stated daytime window and caps each direction at one trade per day.
• Stop loss, trailing stop, and profit target settings are specified as percentages.
• The document gives no performance results and presents the rules as an experiment rather than an optimized system.

Tags

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