50% return in Stoxx anually?

[benysl]

Hi

I posted a thread on Eurex Dax 2 weeks ago on 100% return. Here is my stoxx system that return at least 50% annually based on a EUR 10000 account. Worst year return a EUR 5000+. On a good year can expect more. But being a conservative trader I try to take the minimum projection.

The system is a day trade system. Position is enter during the day. A stop loss is place once in postion. All position is exit at MOC. There is no profit target. If not stop out will exit at MOC.

System is based on prices pattern the only indicator use on some of the system is Moving Average to determine the trend direction.

System only trade about 5 times a month. My Dax system trade 10 times a month.

I have been doing paper trade for about a month on both DAX and STOXX and so far results is promising I should be going real trade soon on Stoxx first I guess since the drawdown is lower just for me to test the markets and get a feel of Eurex markets. I have been trading Asia market all along. This shall be my first attempt to trade Eurex markets if I ever do trade it.

Any comments?

 

[BKuerbs]

Since you trade your systems successfully in the Asian markets, you should be doing ok.

Some questions:

What data did you use to test your systems? The cash index data or futures contract data? Do you trade around the open? I strongly recommend to use the futures data; Systems showing profits when tested on the cash market data are known to fail when traded. There has already been some discussion on this subject, use the search function.

Do you trade around the release of economic reports? These usually are 14:30 CET, some 15:00, 15:45, 16:00 (all CET).

Especially in the FDAX there can be a lot of volatility around these times, sometimes starting 5 minutes before, but usually only after. Since you rely on limit orders for entry and exit, I would check for winners and losers around these times (and dates of course). It could mean you missed some trades, because your limit was not filled, or you would have to exit at a more unfavorable price. Eurex natively supports market stop loss orders only. Stop loss limit orders would have to be simulated by your software or your broker.

Regards

Bernd Kuerbs

 

[benysl]

Quote from BKuerbs:

Since you trade your systems successfully in the Asian markets, you should be doing ok.

Some questions:

What data did you use to test your systems? The cash index data or futures contract data? Do you trade around the open? I strongly recommend to use the futures data; Systems showing profits when tested on the cash market data are known to fail when traded. There has already been some discussion on this subject, use the search function.

Do you trade around the release of economic reports? These usually are 14:30 CET, some 15:00, 15:45, 16:00 (all CET).

Especially in the FDAX there can be a lot of volatility around these times, sometimes starting 5 minutes before, but usually only after. Since you rely on limit orders for entry and exit, I would check for winners and losers around these times (and dates of course). It could mean you missed some trades, because your limit was not filled, or you would have to exit at a more unfavorable price. Eurex natively supports market stop loss orders only. Stop loss limit orders would have to be simulated by your software or your broker.

Regards

Bernd Kuerbs

hi

thanks for your comment, I uses daily futures data to test the system I do not look at cash data at all. I don't use limit for entry. My entry is based on stop. There is no specific time of where or when it will trigger. Basically once a level is determine I will enter a stop order, it is more of a breakout system, as soon as the price is traded I will be in since it is a stop order, once in stop loss order is place, and by market close if I am still not stop out position will be exited regardless of loss or profit.

I am not good at news or data report thus I seldom pay attention to those. Maybe sometimes later I will look into those report but at this moment I am purely a technical trader.

Thanks for your comments.