Trading the German 30 (DAX) can be a thrilling experience when you know how to spot the right opportunities. In a recent session, Joel from Trendsignal demonstrated an impressive trade that secured 112 pips in just 50 minutes! In this blog, we'll break down his strategy step by step, so you can apply it to your own trading and see similar results.
The Session Recap
The trading session took place during the morning member session, running from 8:00 to 10:00 a.m. Joel highlighted the best trade of the day, which extended slightly beyond the session’s end time. The setup focused on the German 30, also known as the DAX, using a 2-minute time frame for quick and precise decisions.
Step 1: Spotting the Entry Signal
The first key to this strategy is recognizing the entry signal. Here’s what Joel looked for:
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Arrow Flip Upward: The arrow must flip upward from the bottom, indicating a potential upward trend.
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Green Space Between Candles: The space between two specific candles must be green, signaling a buying opportunity.
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Blue Central Line: The central line must be blue, confirming an upward market trend.
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Price Above the Pink Line: The price must be above the pink line at the time of entry.
With these confirmations in place, Joel entered the trade at 22,585, with a stop loss set at 22,498 (87 pips). The risk was managed at 1.5% of the account size.
Step 2: Managing the Trade
Trade management is crucial for locking in profits while minimizing risk. Here’s how Joel managed the trade:
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Phase 1 (Beginner): Aimed for 10 pips profit, achieved almost immediately, securing a quick 0.25% gain.
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Phase 2 (Intermediate): Moved the stop loss incrementally to lock in gains as the price moved upward.
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Advanced Strategy: Trailed the stop loss behind significant movements to secure as much profit as possible without choking the trade.
Step 3: Locking In Profits
Joel adjusted his stop loss several times during the trade, gradually locking in more profit as the price continued to rise. After multiple upward moves, he secured 26 pips, then adjusted again to lock in around 65 pips, ultimately closing out the trade with 112 pips in profit. The trade lasted about 50 minutes, with the final exit at 22,697.
Key Takeaways
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Follow a Clear Set of Rules: Joel’s trade followed precise steps, which helped manage risk and maximize profit.
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Adapt to Market Movement: Adjusting stop losses along the way ensures that gains are secured without prematurely exiting a profitable trade.
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Stay Disciplined: Knowing when to take profit or let the trade breathe is essential for consistent success.
Learn from the Pros
Inspired by this trade? Join one of our free trading webinars to see live trade setups and gain hands-on experience from seasoned traders. Book your spot today and unlock your trading potential!
