Print money with this indicator!
The DAX has reached a new all-time high! Just a few points. I’m celebrating that with you! Over the weekend I played with a few indicators. More precisely, not just one, but a conglomerate. Programmed, that looks like this: We have an indicator that provides the first signal.
If we get a green light there, we have a few other indicators (6 pieces, to be exact) that also have to confirm the signal. In my setup, the remaining indicators have 5 candles in the chart to do this. If that doesn’t come, there is no signal.
It works in both directions, so long and short. Especially interesting in the 15-minute chart in the DAX. Especially since we don’t have to get in right away every time. That would be too hectic for me, theoretically being ready to go for a trade every 15 minutes. That already feels like work and that really doesn’t have to be as a trader. Ideally, it can also be more relaxed.
I will show you once what it looks like in the chart when the indicator combo 1+6 does its job. Then we can really make some progress from time to time. It definitely looks very promising right away. With the right trading rules I have to test how we can get the most out of it.
It’s enough if we make small trades from time to time and then get a tremendous profit. How that can look like, I will show you now.
DAX with indicator combo 1+6 in the 15-minute chart. Here you can also see the new all-time high. Not surprisingly. Compared to the German economy, however, all the more. Back to the indicator. You see a signal for short and one for long. After the short signal we could have taken a maximum of 95 points. The long signal has been running since 550 points.
(Source: Tradingview.com)
If we take the short and use a stop loss just above the last high at around 16,050, we would have a chance-risk ratio of almost 1:1.9 to the target. If we do the same with the long signal and take 15,910 points as SL – that is below the lows in the chart – we have so far achieved a CRV of 1:7.1 and the trade is still running. That’s obviously extremely chic if we can get the 7-fold back as a stake. Long stretches are definitely possible with this 1+6 indicator. „Long“ – we are talking about the 15-minute chart.
The last long stretch that ended with the short signal in the chart would have been a 1:5 CRV according to this calculation. So we would have won five times our risk.
Refining Strategy Of course there are not only long stretches. If the DAX runs sideways, then of course nobody makes big scores. The art of a good trading system is to make money in any market condition. And maybe especially a lot in particularly appropriate situations.
If I now look at the first sideways phase, in 3 out of 4 cases we always achieved a CRV of 1:1 and won. That it will remain at 75 percent, I doubt. That’s not the decisive thing for me. I would rather always start two trades: One goes to the target 1:1 and the other we let run long, in case we are at the start of a big stretch. For the second trade you can then pull the SL to the entry when the CRV of 1:1 has been reached.
I will continue to work with the 1+6 indicator and keep you up to date! Oh, one more addition: Above I mentioned that we don’t have to be active every 15 minutes. That’s because the prices rarely start directly in the right direction when a signal comes. Sometimes they push a little to the side. Sometimes it goes a little in the other direction and we even get into the trade more cheaply.
Of all the trades I have analyzed here, only one did not have the chance to get in much later and even cheaper. That alone is already a really good sign that we can even squeeze out more profits.