If you are looking for new strategies for trading stock indexes, you are in the right place!!

In this video, we’ll talk about the rules of two strategies for the DAX futures that have made over €225,000 in the last two years! (Trading one contract)

Both strategies have been live for 5 years and have performed very well after their development. They have shown that they can achieve excellent average trade values.

Watch the video now to learn more about the performance and basic rules of these two strategies!

Enjoy! 😎

Transcription

Introduction

Hello and welcome back to our usual video where we talk about the strategies in our portfolio that have performed the best over the last period.

One of the coaches at Unger Academy here, and today we’re going to be taking a look at two strategies for the DAX Futures that have done very well over the last few years.

They have been live on the market for more than five years, and, just think, in the last two years alone, they have earned more than €225,000 trading with a single contract.

So let's go and take a look at them together.

The first strategy: Reversal on DAX

Here is the first of the two strategies we're going to be seeing today. This is a multiday strategy developed on the DAX future with a 15-minute timeframe.

Here we see the chart with data from 2008.

Let's look directly at the chart to see how this strategy works.

It’s a reversal strategy and more in detail, we could call it a false breakout strategy. What does that mean?

We can say that the system waits for a breakout of a level and a subsequent rebound around that level before entering a position.

The level is the low of the previous session. Here, we see that the low in this session was touched at the point I’m showing you.

In the next session, around this level, there was first a downward break with this red candlestick and then an upward re-entry with this green candlestick.

So, we had the conditions to open a long position.

What’s interesting then are the exits, which are done with monetary stop losses, take profits, and break even stops, with the addition of possible time exits.

The trade is closed after three days if, at that point, the position has made at least a certain profit.

Or it can be closed after five days if, at that, point, the trade is in loss.

Then all the positions that will still be open on the ninth day will be closed at the end of the session.

Let's take a look at the metrics of the system.

Since 2008, the strategy has made a profit of €546,000, with a maximum loss of about 71,000.

If we look at the equity curve, we can see it’s increasing.

Here, we note that it was launched on the market around 2018.

Immediately after that, it suffered a sharp drawdown but then recovered and grew very well.

We can benefit from the long side but also from the short side, which took good advantage of last year's stock slide.

If we look at the average trade, we notice a high value of over €1,000.

And indeed, for this instrument, this is a very significant value.

Since 2008 the strategy made 477, mostly long.

If we look at the annual period analysis of the strategy, we see a decline after it was put live on the market in 2018 and then it recovered really well.

We notice that all the years are in profit apart from this year, that hasn’t recovered yet.

Anyway, the average trade per year is equal to, if not higher than, the average trade throughout history.

Using the monthly rolling, we can see that from August 2021 to August 2023, the strategy generated 71 trades with a total profit of €115,000 and an average trade of €1,600 per trade.

The second strategy: Trend following on DAX

We have now moved on to the second strategy. We’re still trading the DAX future with a 15-minute time frame.

But in this case, we’re dealing with a trend-following multiday strategy.

Again, I have uploaded the chart with data from 2008.

Trend following is what I said. What does that mean? This strategy uses one of the most well-known indicators: Bollinger Bands.

And the logic here is also very simple.

If the price breaks the upper band to the upside, then you open a long position, so you buy.

Conversely, you enter short if the price breaks the lower band to the downside.

Let's look at one trade to understand it better.

Here, we see the upper Bollinger band above in blue and the lower Bollinger band in red.

So, we note here that this bar has broken through this level represented by the upper band.

And in this case, we had the conditions to enter the market.

Trend following means that this strategy tends to follow the direction that the prices are going.

So, in these bars, this level was broken, namely the upper band level, and so we decided to follow the upward movement of the prices.

In this strategy, the positions can run up to a maximum of twelve days on the long side and eight days on the short side.

It uses classic monetary exits such as stop loss, take profit, and break even.

In addition to these, another exit condition is triggered on Friday evening if the profit at that time is below a specific value.

This is to avoid staying in the market over the weekend with too little profit from the open trade.

Let's take a closer look at the metrics.

This second system made a total profit of €631,000 with a maximum loss of about €75,000.

The equity curve is rising in a steady was and it's reaching its all-time highs.

Here you can see the time when the strategy went live.

The strategy was developed in 2017. It suffered an abrupt drop shortly after that but then recovered very well and grew without a term.

If we look at the average trade of the system, we come to €650, which is very good for the instrument, although lower than that of the previous strategy.

In this case, it’s well distributed between the long and short sides.

As for the number of trades, it is about double that of the strategy we've seen before.

In the annual period analysis, we see all years are profitable except for 2018. That's the slide we mentioned before.

After that, it recovered very well. We see here an extensive average trade per year, which in some cases is even higher than the historical average trade of our strategy.

Finally, let’s look at the monthly rolling data from August 2021 to August 2023. The strategy generated 129 trades with an average trade of over €850.

Finally, from August 2021 to August 2023, this system generated a profit of €110,000 in the last two years.

Together with the €115,000 from the previous system, we have made a total of €225,000 in the last two years using these two strategies with a single contract.

Conclusion

Alright! So, today, we’ve seen two strategies for the Dax futures based on simple logic.

The first strategy waited for a market retracement to open the positions, while the second strategy waited for strong price directionality before riding the wave and following the trend.

In short, nothing complicated. Remember that simplicity always pays off in trading, and the results of these two strategies are an example of that.

If you want to learn how to create trading strategies like these on your own and start your journey as a systematic trader, you've come to the right place. Click on the link below to watch a free presentation by Andrea Unger, get our best-selling book, The Unger Method, covering only the shipping costs, or book a free call with a member of our team.

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Thanks for watching and see you next time!

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