Start your Trading Day with a BANG!!!
Why bother with indicators, trend lines, MACD, etc when you can make £1,000 in SECONDS of the market opening then put your feet up for the rest of the day?
Okay so you’ve heard me talk about the German DAX open breakout strategy numerous times in my articles (or is it the DAX breakout strategy?)
It’s something you can do EVEN IF YOU HAVE NO TRADING EXPERIENCE.
It is a set and forget until the market opens and then, hopefully, you’ll be quids (or dollars/Euros etc) in seconds or minutes later.
Here is what you do…
- Mark the high and the low of the hour (GMT) from 7am until 7:59.59 — this is the highest point the candles have made and the lowest. Use a five min bar chart and mark them to the exact point.
- Set a buy order long at the high and a sell order short at the low.
- Set your limit at six points — this means when it hits your six point target it will take profit.
- Set your stop loss at nine points. This means if you get stopped out you will lose nine points worth of money.
- Once one of your orders — the buy or the sell — triggers cancel the other order.
- Wait to be either stopped out or it hits your limit and you win.
- It wins a lot more than it loses.
I trade £100 a point, I used to trade £200 but I find £100 is easier to recover from if I lose.
I’m thinking of going to £200 when my cash hits £80K.
Here’s today’s example…
I have market off the high and low — note it’s the high and low of the wick, not just the fat bar.
The low was at 14732 and was made on the 7am candle.
At 8am the market went higher, then it reversed into 14732 and made a low of 14725 before reversing back.
I’d taken profit at 14726, £600 in the bag.
The trade was triggered at 8:03.35 and closed out at 8:04.19.
Now lets have a look at yesterday’s trade…
I have marked the low at 14746.5.
The high was at 14694.
The trade hit my buy order ONE SECOND after the market opened and closed 29 seconds later for a £660 profit (the extra £60 in known as slippage).
Two trades, roughly one and a half minutes in total, about four minutes to input both the order, £1,260 in the bank.
IT IS THAT EASY.
Try this out on a demo account.
Get used to it. I’d suggest following the late Dr David Paul’s general rule.
Trade it 20 times then trade it on a real account.
You will be mightly impressed.
One thing to note is your spread. Make sure you are trading a broker who gives you a good spread on the German DAX.
I trade wit TD365 who have a 0.9 spread on the DAX which is pretty good.
Anything higher and you may not have the same success.
And please, share my article with your friends and other writers.
This really is a failsafe strategy that WILL make you money.
And if you do like this please read my other articles and join me on my trading journey.
I am paper trading my 7am open strategy for the time being. I need to iron out a few niggles and know when to take profit, leave to run, stop and reverse etc.
Today I got lucky.
I bought the break of the prior candle’s high and as I was sorting my stop loss out it whipsawed down.
I’f my stop was in place it would have taken me out, and a stop and reverse would have also taken me out.
I could’ve been £500 down in seconds.
Instead because I was preoccupied with getting the correct stop in place I got it on only when it had reversed back up, and I was still in the trade.
I took profit at PLUS £125.
As I’ve outlined earlier the DAX opening breakout came in aand then I placed two FTSE trades.
The first trade stopped me out for MINUS £41.25 on a strong reversal, so plased to have gotten out with only a minor loss, and the second, a scalp, I was stopped out for MINUS £101.25.
I missed a good school run trade on the long side.
It was close to a double top so when it broke I was hoping for a retrace into the range and then a second breakout.
I didn’t get one so I didn’t get on the trade.
The afternoon session was a quiet one.
I placed one trade on the DOW and was stopped out for MINUS £0.80.
Profit for the day = PLUS £456.70.
My end of the month October rally trade on the DOW which I highlighted in prior posts is currently 550 points in profit.
DAX 7am CANDLE STRATEGY = MINUS £47
DAX BREAKOUT TOTAL = PLUS £3,290
DAX ADVANCED SCHOOL RUN TOTAL = PLUS £29.20
DAX SCHOOL RUN = MINUS £31.02
FRANCE STRATEGY = MINUS £1,537
DOW BREAKOUT STRATEGY = MINUS £575
SWISS 20 STRATEGY = MINUS £1,014.60
DOW PRE-MARKET OPEN STRATEGY = PLUS £167.50
US500 8th CANDLE STRATEGY = MINUS £343.75
FTSE TRADES = MINUS £713
NASDAQ TRADES = PLUS £592.50
OTHER TRADES = PLUS £2,865.15
TODAY’S TOTAL = PLUS £456.70
OVERALL TOTAL = £71,095 (excludes £2,000 withdrawal = £73,095)
PAPER TRADES
DAX 7am CANDLE STRATEGY = PLUS £250
DOW PRE-MARKET OPEN = MINUS £750
DOW OPEN TOTAL (DAY 11) = PLUS £30
DOW 2 MIN CANDLE TOTAL (DAY 8) = PLUS £527.50
DAX ADVANCED SCHOOL RUN (DAY 8) = PLUS £1,826.87
DAX SCHOOL RUN (DAY 8) = MINUS £374.87
FRANCE STRATEGY (DAY 8) = PLUS £353.54
US500 STRATEGY (DAY 2) = PLUS £618
OVERALL TOTAL = PLUS £2,481.04
Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Trading involves risk, and it is important to conduct thorough research and seek professional guidance before making any investment decisions.