In this video, we talk about two strategies that have performed very well on the DAX market.

The first is a trend-following multiday strategy that uses Bollinger Bands as entry triggers and since 2021 has made €123,000.

The second is a bias strategy that has made €155,000 since 2021 with an amazing average trade of around €1,500.

Want to learn more?

Then watch the video now! You’ll discover:
•How the two strategies work
•What rules they use
•All the details about their performances (trading one contract)

Enjoy 😎

Transcription

Introduction

Hey everyone and welcome back. As usual, today we’ll evaluate the strategies in our portfolio that have achieved the best results over the last period.

I’m one of the coaches at the Unger Academy, where we develop automated strategies and then apply them to the major futures markets such as Gold, Stock indexes, and much more.

And today, we’re going to be looking at two strategies that have done very well recently in the German DAX market, which has seen very interesting movements in the last weeks.

Bollinger Bands Trend-Following Strategy

The first strategy I’d like to introduce is a trend-following strategy that uses Bollinger Bands as entry triggers.

So, we enter long when the upper band is crossed and we enter short when the lower band is crossed expecting the ongoing trend to continue in the same direction.

This is a strategy that has been out of sample since 2017, more precisely since January 2017.

So, we can say more or less from this point here.

Now, while it’s true that initially this strategy worked very well, then, between 2018 and 2020, the pandemic and a lot of shocks in general, even at the macroeconomic level, changed the game slightly. So this strategy stopped working and delivering profits for a while.

However, things changed again towards the end of 2021. And indeed, we see that this strategy has managed to bring home up to €123,000 from the end of 2021 to today alone.

As I said, it’s a multiday strategy that keeps positions open for several days.

Sometimes, even for a whole week, as with a long position that we’ll look at in a moment.

The average trade, already net of the commissions and slippage costs that we would pay in this market, is very large.

It’s almost 600€, which is enough to cover the costs to trade this market.

Costs that we estimated to be around 60€ per operation.

So, opening and closing each trade would cost us more or less 60€ in commissions and slippage. This number is the sum of two ticks, because one tick is worth 25€, so multiplied by two gives us 50, to which we then added 10€ to be a little more prudent in the slippage calculation.

Now let's look at the trades this strategy has made in recent weeks.

This amazing long trade opened following the ongoing trend stands out, and ended with a take profit of €16,220.

The strategy had previously gone through a few stop losses and a break even stop.

The stop loss is worth 2,560€, but those losses were largely recouped after this profitable trade.

More recently, the strategy has tried a short trade, but to be fair, you could say it only lasted about one session.

Then the strategy has switched to long and is over 200 points in profit.

**Bias Intraday Strategy **

Let’s turn to the second strategy we’re going to see today. Differently from the previous one, which was a trend following strategy, this is based on a bias approach, which means that it waits for a specific time and day of the week to make either long or short trades.

Specifically, long trades take place on Tuesday, while short trades only occur on Friday.

This means that this very basic strategy can only make two trades per week.

Trades that will also have a limited duration, as all positions will be closed by the end of the session.

As you can see, this strategy has made a fascinating series of trades in the last period.

We can see a short trade that made 2,965€ here.

A long trade that made 2,340.

A short trade again, worth 3,190.

And so on until the last long position that the strategy made, which brought in €4,390.

This strategy also suffered during the pandemic and at the beginning of it’s out of sample period.

Like other stock indexes, for example the U.S. stock indexes, this market experienced powerful shocks between 2018 and 2020.

But we see that even in this case, if we look at the results year after year, in the last three years from early 2021 to the end of 2023, the strategy has been able to return to profit, forgetting somewhat the two bad years of 2019 and 2020.

This strategy has a significantly smaller average trade than the strategy we saw previously.

The reason is that, as I told you, this strategy closes all open positions by the end of the session. So, while the previous strategy was based on a multiday approach and held positions open for several sessions, in this case we’re working in intraday and closing all positions by the end of the session.

The average trade is 334€, which is still more than enough to trade this market, especially considering that we have again added the usual 60€ commission per trade.

Conclusion

So, over the past two years, as I mentioned, the two strategies presented in this video have managed to generate really interesting profits.

From November 30, 2021 to today, the second strategy has brought home €150,000 in 106 trades.

This means that the average trade for the last two years is nearly €1,500, which is certainly a very respectable and remarkable result.

We also see the results of the previous strategy that we showed.

Again, we move over to November 30, 2021, and we see that the strategy has managed to take home an impressive €123,000 in the last two years.

In this case, 119 trades were made in this time frame, again with a very respectable average trade exceeding €1,000.

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