The financial markets offered a goldmine of opportunities on 19th February 2025, and our Trade of the Day on the DAX did not disappoint. In this post, we’ll dive into the strategy, execution, and incredible results that turned a single trade into a 10% gain on a £5,000 account.
Setting the Stage: A Dynamic Trader Opportunity
The DAX presented a strong sell trade setup early in the day, and our trading expert, Joel from Trend Signal, walked us through each step. The setup was clear—a downward arrow outside the blue line, red vector averages, and a solid entry at 889 with a 21-pip stop loss at 910. The risk management was set, and it was time to let the strategy do its work.
Trade Execution: The Five-Candle Rule
One of the standout strategies in this trade was the five-candle rule. Joel patiently allowed the market to “tug of war” for five candles to see where the momentum would take us. After this initial phase, the market showed promise, moving from 889 to 80 and positioning us well for potential gains.
Managing Risk Like a Pro
Dynamic trading is as much about protecting capital as it is about making profits. Joel consistently moved the stop loss to reduce risk, tightening it from 910 to 894 and then progressively lower as the market continued to favor the trade direction. By managing the stop loss effectively, he minimized risk to just 5 pips, turning a potential 1.5% risk into a mere 0.375%—a masterclass in risk management.
Riding the Market Wave
As the trade developed, the DAX experienced significant downward momentum. Joel leveraged every opportunity to lock in profits by moving the stop loss strategically, ensuring that as the market dropped, our gains were protected. Eventually, the market reached 731, delivering a total of 158 pips of profit—transforming a £5,000 account with £357 per pip into a £525 gain, a whopping 10% in a single trade!
Why This Trade Stood Out
While the trade of the day was a highlight, the DAX continued to offer strong trading opportunities throughout the session. The market’s consistent downtrend allowed for multiple dynamic trader setups, showcasing the power of our strategies in volatile markets.
Learn These Strategies for Yourself!
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