DAX daytrading Strategy

Hi,

I am new to elitetrader and would like to share my strategies on Dax futures trading.

My method is quite simple and seems to work very well.

On 1 min chart, I use Keltner bands, volume and sto 14/3/3.

I only enter a trade on pullbacks from the major trend when sto is overbought (75) or oversold (25).
My stoploss is always 4 pts and target is 8 pts. Exit is discretionnary. It depends on volume, sto and price action (new lod etc.)

I never trade between 12.00 and 13.00

This are examples of today's trades.

I d'like you to share your opinion about this strategy

TJ

 

This is trade 2

 

trade 3

 

trade 4

 

I have found this to be a very good strategy for most trading instruments.

Looking at trade 4, one thing I have found to help avoid a loss when the trend is turning is to also pay attention to the stochastic returning to 25 or below and then turning up. If the high of the bar making the low on the stochastic is exceeded, EXIT!

Also, the divergence in the lows in price and lows in the stochastic can give advance warning that the trend may be changing and a target will not be reached.

Thanks for posting your charts.

Good Luck!

 

Everybody should print this, very helpful.

I would like to add something, regarding trade#4. When there is a divergence in last 1-2 hours of trading on previous day, go with a direction of a divergence early in a day, in this case you should not go short till Keltners are violated clearly.
Walter

 

are you or anyone profitable w/this strategy? if so how long have you been profitable? also what are the setting of the keltner bands? what are you using it for, you just said that you have it, you didn't say how you are using them.

 

It looks like a reasonable strategy but your timeframe is too short for me. The DAX tends to trend better than the Emini's so it looks to me like it's better to hang on to the winners longer.

I've only been trading the DAX for two weeks using volatility breakouts. So far I'm up about 3k per-contract so what do I know? I'll be doing more research on the index to find some really good edges. This market is much easier to trade than the Emini and it looks like it's dominated by bigger players. Small fish like me should do very well with it. I'll post some strategies when I've done some more research.

Good luck

 

looking forward to the dax thread. have been researching the dax lately. good luck.

 

Nutseal,

Thanks for your support. I will pay more attention on divergences. Seems to be very important for exits !