DAX Quant strategy 2019

We are introducing a simple, quant generated strategy for the German DAX index, which has the potential to bring solid profits in 2019. The DAX Quant strategy is suitable for both beginner and advanced traders. The strategy uses only two indicators, one for opening a position and the other for closing an opened position regardless of the current profit or loss. The time frame for using the strategy is one hour - H1. It is recommended to use the DE30 financial instrument in Varchev Absolute Trader 5, due to the extended trading hours.

Indicators: Force Index with period 8 and Envelopes with period 9, shift 0, МА method Simple and Apply to - Close:

Your template if you decide to use this strategy would look like this:

DAX quant strategy entry conditions:

Entry long:

When the Force Index crosses from positive to negative territory, more precisely when Force Index of the second previous bar is above 0 and the previous bar below 0. The entry condition is met when the criteria is valid for the last two closed bars.

Exit long:

When we see a closed bar above the upper band of the Envelopes indicator.

Entry short:

When the Force Index crosses from negative to positive territory, more precisely when Force Index of the second previous bar is bellow 0 and the previous bar above 0. The entry condition is met when the criteria is valid for the last two closed bars.

Exit short:

When we see a closed bar bellow the bottom band of the Envelopes indicator.

*Important: When using the strategy it is recommended to use the Data Window to be accurate with the Force index indicator values.

Backtest results of the DAX quant strategy for the period 01.12.2018 until today 20.03.2019:

Modeling Quality can be ignored as the value is low due to the small sample of data which it is tested on. Our practice has proved that with so fast changing markets optimization on larger sample prove to gather worse results.

Backtest can not be taken as a criteria for future results so in case of an Equity Drawdown more than 6% you should e ready to stop using the strategy.

Here are the results from real trading account with that strategy since 01.03.2019:

Currently the strategy has one opened long position with negative result and the other opened positions on the chart are result from other strategies that we are currently testing in a basket of strategies.

*IMPORTANT: All the data and the statistics for the strategy can not be taken as a criteria for future trading results.

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