DAX Midday-Trend Algo for ProRealTime

This is one of the best automatic trading algo I developped for the DAX (German 30 indice).
The algo combines my manual trading skills on the DAX, my professional developer skills, and the powerful Prorealtime backtest system for a reliable result.

Why using the DAX Midday-Trend algorithm?

  • The DAX Midday algo was backtested since 2013 and the P&L curve is impressive with a very limited drawdown. It’s killing it for 8 years with no loosing year (see backtest details below).
  • It was tested on a live account for months to validate the backtest results
  • It was designed to be executed on ProRealTime (CFD) which is a very good platform to run algos because it’s reliable and you don’t need any VPS (third party server) to run it 24/24. ProRealTime runs it for you on their server at no extra cost. It’s design to run with IG broker. Feel free to contact us if you need more info on prorealtime or IG.

What is the strategy?

It’s a trend following algorithm that analyses the price action from the european morning session (from the 9:00 AM german time opening to 1:00 PM). Then it decides if there is a trend and if the price moves are strong enough to open a short or long position between 1:00 PM and 2:00 PM UTC+2 (its name “Midday” comes from there actually).

Then all positions are closed before the end of day, it is a “day trading” algo, the algo doesn’t hold any positions overnight.

What is the money management?

  • Stop Loss : the algo uses a “worst case scenario” stop loss at 150 points that is rarely hit (12 times in 8 years) but is a good protection. The average loosing trades are closed at 43 points.
  • Take profit : the algo does not use any fixed take profit. It allows us to benefit from the big trend days by closing the positions at the end of day.
  • Trailing stop : when we are in profit, the algo will secure the position by moving the stoploss in profit at two predefined levels.

What return can you expect?

With a 2000 euros starting capital and trading 1 contract only, our backtests on “Allemagne 30 Cash (1€)” with a 1.3 spread deducted from every trade resulted in a 11616 euros profit in 8 years. It means you can expect 1452 euros per year, which is a 72% return per year with this capital.

This is possible because the maximum drawdown is 6.92%, it is very low. Note that it is still better to have a bigger starting capital to lower your risk, and that the past performance is not indicative of future results.

Backtest result with 2000 euros capital and 1 contract fixed

Algo equity curve at the top with 1 contract (and 1.3 spread)
full statistics from closed positions

Backtest result with 10000 euros capital risking 5% per trade

Using the algo, you can trade a fixed contract number or a % risk from your capital at every trade. This second backtest example illustrates the % risk version using a 10k starting capital, risking 5% per trade, and reinvesting the profits along the way.

Algo equity curve at the top risking 5% + reinvesting profits (and 1.3 spread)

Note that even if our 5% risk is pretty high, the maximum drawdown is still acceptable (12.75%). Limiting your drawdown is very important to be confident keeping the algo running.

full statistics from closed positions

Buying the automated trading algorithm

The licence is at 490 euros for the first year and then 110 euros per year.

launch special offer at 122 euros billed every 3 months (automatic renewal can be cancelled any time) that could allow you to test the Algo at a cheaper price.

It includes all futures updates that would improve the algorithm and technical support. The algo files and documentation will be sent at your paypal email within 24 hours.

Important note : you will need a IG broker account (free to open) and at least a 1000 euros capital on your trading account to trade 0.5 lots with the algo.
The broker is very reliable, I’m using it without any issues for years. If you don’t have an IG account yet, feel free contact us for assistance.

Please read the terms and conditions before buying. When buying, you fully accept the terms and conditions.

2 Comments

  1. Bonjour,
    Comment sont gérés le stop de l’algorithme et le stop garanti d’un compte IG via Prorealtime ?
    Est-ce que :
    1- le stop garanti s’ajoute au stop de l’algorithme ?
    Dans ce cas c’est le stop de l’algorithme qui est exécuté s’il n’y a pas de slippage ou de gap et dans le cas contraire, c’est le stop garanti qui s’exécute.
    2-Ou le stop garanti se substitue au stop de l’algorithme ?
    Cordialement

    • Bonjour,
      Lorsque qu’un algorithme automatique est activé dans prorealtime (proOrder), une fenêtre de configuration vous proposera de cocher ou non le “stop garanti”. Si c’est coché, l’algorithme va utiliser des stops garantis. Dans le cas contraire, ce seront des stops loss standards. Il y aura donc deux cas de figure :
      – Si vous avez un compte IG à risque limité avec le stop garanti obligatoire, cette case sera obligatoirement cochée et vous ne pourrez pas le changer. L’algorithme placera alors des stops garantis sur chaque position.
      – Si vous avez un compte IG standard, vous aurez le choix de cocher cette option de stop garanti ou non. L’algorithme utilisera ce choix pour savoir si les stops placés seront garantis ou non.
      Si ce n’est pas clair pour vous ou que vous voulez voir à quoi ressemble cette fenêtre de configuration dans prorealtime, n’hésitez pas à m’envoyer un email via le formulaire de contact, je vous enverrai la documentation pdf de l’algorithme dans laquelle vous comprendrez mieux avec les captures d’écran.

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