I will try make a result summary from DAX Midday-Trend Algorithm on a monthly basis to analyze the results. I will show you the losses and the profits from a real account where the Algorithm is running. I want to be transparent, and more than that I want to improve the algorithm over time, it involves results analysis as a first step.
1. August 2021 live results
The trading algorithm lost 109 points this month.
While new algo users may feel like it’s a lot, it’s not very surprising to me. The system had loosing months in the past and will have loosing months, and this August price action on the Dax has been mostly ranging and calm when looking at the daily ranges.
The Dax Midday-trend algo was designed to benefit from trends, we can easily understand why this August was not ideal for it. Still the losses have been limited and the previous winning months covered it easily.
2. Equity curve review
The bigger equity curve picture is still fine, we are still in line with the moving average:
If I zoom a bit on July and August, we can see that the algorithm is still profitable for this summer, that’s not bad knowing that summers are usually less volatiles than others periods.
The algorithm had some drawdown between August the 20th and 26th, it was caught in several sellers traps, and now we can see it’s recovering. While I called these traps live on our Telegram group, these are more difficult to detect for an automated trading system.
Still that’s a good food for thought, I will see if I can improve something about this.
We have to remember that the DAX Midday-Trend system is not a scalping system, it’s day trading system and it doesn’t open trades every day. We will have loosing months but looking at 1 months results is not enough for such a system, we have to be patient and let it run to benefit from the trending days.