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BOOK YOUR FREE STRATEGY SESSION NOW >>In this video, we examine two strategies on the DAX futures, the stock index that includes the 40 most capitalized stocks in Germany.
What's particularly interesting is that these strategies together have earned over €115,000 over the last two years by trading a single contract.
The first strategy is based on a bias approach and exploits the recurring price movements of the DAX on a weekly scale.
The second is a trend-following strategy that uses the Bollinger bands as entry triggers.
Want to learn more?
Then watch the video! You’ll discover:
-How the bias strategy works and on which days it buys and sells
-How the trend following strategy works
-All the details on their performance
Enjoy! 😎
Introduction
Hello and welcome back. Today, as usual, we're going to evaluate the strategies in our portfolio that have achieved the best results in the last period.
At Unger Academy, we develop automated strategies and then use them in the major futures markets such as Gold, Stock indexes, and more.
Today, however, we're going to look at two strategies that have performed well recently in the German stock market, the Dax, which is an index of the 40 most capitalized stocks in Germany.
Here we can see the workspace with all the strategies related to the Dax from Andrea Unger's personal database. As you can see, they are diverse, but recently two of them managed to stand out from the others.
Bias Strategy
The first strategy we are going to share with you today is a bias strategy that during the week opens several positions both long and short.
The long positions are traded on Tuesday and Thursday, as in the case of the last two positions we’ll see on the chart, which took place on Tuesday and Thursday.
The short trades, on the other hand, are made in the last session of the week, on Friday.
We’ll take a closer look at that in a moment. In the meantime, let's look at the results that this strategy has produced since 2010 until now, early October.
Using this equity line, we can see that the strategy, which has been out of sample for several years, has been able to maintain the gains made during the development period.
An important thing to point out is that we have already included commission costs and slippage in this strategy. These amount to €60 per trade, which is made up of €25, which is the value of a tick on this market multiplied by two, for entry and exit, and then all commissions.
Even considering these costs, the average trade of the strategy remains very good (€258) and is split between €330 on the long side and €112 on the short side, and as we know, the short side is always the one that is a little weaker and harder to trade on the stock indexes.
Also, we can see that the strategy has made more than €13,000 in the last two years, which is the result of 70 trades.
As I mentioned earlier, the last three trades went well, except for a stop loss on Tuesday.
Thursday's long trade was very profitable at €2,940, and Friday's short trade also brought a profit of €590.
Multiday Strategy (Trend Following)
Now to the next strategy I want to show you today. This is a strategy that has also performed very well recently.
We can see it here. With the last trade that the system executed, we were able to make a profit of €1,890.
In this case, too, we already took into account the commission costs and slippage, which are the same as those of the previous strategy, that is, €60 per trade.
Again, we can see that the equity line of the strategy itself has remained very positive in the post-development period, albeit with a less positive trend than the one we've seen in the past years.
In this case, the average trade of the strategy is much higher than the previous strategy. Indeed, we’re reaching a €700 average trade.
This is a multi-day strategy where the positions are kept open beyond the end of the trading session and is based on a trend-following approach.
And we are happy to say that this strategy has also done very well over the last two years.
Let's see here, from October 3, 2021 to September 29, 2023, the strategy brought home well over €102,000.
The strategy, as I said, uses the Bollinger bands as entry triggers.
And last time, using this indicator, we can see that the strategy took a long position on a price breakout of the Bollinger bands, in this case the upper band, and then closed it at the end of the second day.
The position had initially seen a sharp rise of over 200 points and then closed with a profit of about 70-80 points at, as we said, €1,890.
Conclusion
The Dax is a very heavy market, and as we said, a single tick is worth €25.
But today, fortunately, much more scalable products have also entered the market: the Mini-Dax and the Micro-Dax.
The Mini-Dax is definitely a little bit older. It's been around now since 2018, while the Micro-Dax just came out last year.
The mini-Dax is one-fifth the value of the Dax, while the Micro-Dax is 1/25th the value of its big brother.
So, this is a product that is accessible to many traders and there are certainly edges hidden in it that can be exploited through systematic trading.
We'll help you map out a plan to fix the problems in your trading and get you to the next level. Answer a few questions on our application and then choose a time that works for you.
BOOK YOUR FREE STRATEGY SESSION NOW >>Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years.
I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems.
In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again.
Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets.
Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.
