DAX daytrading Strategy

Discussion in 'Index Futures' started by eggs, Nov 13, 2003.

  1. Boomer

    Boomer

    could someone post a chart with a simple example of a divergence type signal. thanks.
     
    #11     Nov 13, 2003
  2. eggs

    eggs

    doug,

    I use Keltner bands 20 ema. In fact I papertrade this strategy for 4 weeks now and it seems very profitable. The setup is clear and the risk/reward is 1.5/1 on average with a 70% win rate but you must be in front of your screen all day long anf be very very patient.

    Keltner bands can be used also as target. I like the setup when keltner band is pierced with a pullback around the 20 ema. Seems to be very powerful.

    For real trading I use a 30 min breakout system. My stop is always 15 pts and my target is 30 pts. I move my stop to BE when 20 pts are reached. The win rate is 50%.
    The average daily range on DAX is +/- 80 pts. I average 150 pts/mont with 1 contract.

    Good trading !
     
    #12     Nov 13, 2003
  3. eggs

    eggs

    acrary,

    What do you mean with volatility breakout ? What are the criterias for entering a trade ?
     
    #13     Nov 13, 2003
  4. acrary

    acrary

    #14     Nov 13, 2003
  5. The trend lines showing the price continuing to make lows and the same time the trend line shows the stochastic not making a new low is a signal that the downtrend has lost its momentum or control and that the trend MAY be changing to sideways or more probably up.

    disregard all the arrows on the right.

    I was messing around for the benefit of dbphoenix for his help!
     
    #15     Nov 13, 2003
  6. eggs

    eggs


    I suppose you hold your positions overnight.
    Pay attention. Dax is very versatile. You can have opening gaps of more than 60 pts. That's a lot of money but if you can afford it, no problem !
    Thanks for the explanation of the system

    Good luck
     
    #16     Nov 13, 2003
  7. acrary

    acrary


    No... daytrades only. So far only 7 trades. Nothing for today.

    Good luck to you too........
     
    #17     Nov 13, 2003
  8. eggs

    eggs

    Nutseal,

    Do you consider this a divergence ? would you exit the trade and when ? Does it mean a change of trend

    Thanks for your help
     
    #18     Nov 13, 2003
  9. eggs,

    Just want to make sure I'm understanding correctly..

    You enter as soon as the market shows overbought/oversold.. you don't wait for any type of confirmation ie. canlestick reversal.. or breaking of the trendline..
     
    #19     Nov 13, 2003
  10. Trade 1 is a pattern on the stochastics that I trade. It's a hidden or reverse divergence. That setup is actually a perfect one, the stoch flattens between 70 and 30, then heads up with the price failing to make a higher high, nice short there.
     
    #20     Nov 13, 2003