"Donau" Trading Strategy
"Donau" is a simple system using the MACD-histogram for trendfollowing by being always positioned.
The setup feture of "swings" is used to indicate changes of trend and change the trendfollowing position accordingly.
The strategy worked extraordinarily during the high volatile trend years 1999 to 2003.
Due to lower volatility and trendiness we had to add a trend-filter and a trailing-stop then to keep it trading profitably (and the strategy then is not always positioned at the market).
Equity development over the years (hypothetic):
Detailed report:
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Name of Strategy:
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Donau
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Setup:
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Trendfollow with
MACD histogram swings
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Market:
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FESX, 1999-2006
84 months
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Net gain:
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€ 33866
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MDD:
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€ 5944
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ZEN 5%:
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3.56
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The strategy uses the push to new extremes at the end of a trend and the counter-trend that sets in due to profit-taking.
In the FESX market the MDD is a bit too high (could possibly be reduced by profit-targets)
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