The trading strategy is working! Yesterday I showed you the new and optimized version of my trading system. There was an immediate long signal. Today I will show you in detail how it looks in reality.

DAX in 15-minute chart with long signal Here there is a lot to see, so I will explain everything in order. At 12 o’clock yesterday there was the long signal. That was at 16,742 points. When and where the signal comes, however, is ultimately irrelevant to us. We just wait from this point for a pullback. For that we need a high and the last low.

However, the prices continued to rise after the signal. It was only this morning at 6 o’clock that the high you see on the chart was formed. From there I drew the Fibonacci Retracement. As a low, I did not take the low shortly before the long signal, but one before. Thus, the high and the low have approximately the same distance from the signal. I noticed this in backtesting, that we have to go back here accordingly far, if the prices need something to form a new high.

(Source: Tradingview.com)

The Fibonacci lines are drawn. The 61.8 retracement at 16,696 points is found. Here I have set the buy limit for 2 long trades. The pullback to the 61.8 was perfectly achieved. For the record: The stop loss is just below the 78.6 retracement. However, the prices immediately turned after our buy limit was executed. That was ideal.

As the 1st take profit, we take the double distance to the stop loss – which was 31 points away. So we want 62 points for the 1st target price. That way we get a CRV of 2:1. This was achieved this afternoon.

As far as trade management is concerned, I have pulled the stop loss back to the entry when the prices reached CRV 1:1, that is, 31 points in the plus. Then the first target was reached. Then I pulled the stop loss for the 2nd position back to the 31 points. The 2nd target at 93 points distance was not reached. The prices turned back again and I was stopped out with 31 points in the plus.

Conclusion 1x CRV 2:1 and 1x CRV 1:1 – that’s 150 percent profit. We risked 31 points in both trades and made 62 points and 31 points profit respectively. Maybe the DAX is now even reaching the CRV of 3:1. But that doesn’t matter. We have finished the trades.

I had some doubts myself whether the entry would even come. After all, the prices kept rising after the signal. But it has been shown that the idea is good. The 61.8 retracement was perfectly run and gave us an optimal entry. So we can work with tight stops and quickly reach the target prices. That makes you want more!