Profit factor 1.47
Instrument: Indices
Supported platforms: MetaTrader 4, MetaTrader 5, StrategyQuant
Strategy description
This DAX M15 strategy is a clean, rules-based breakout system designed to participate only when momentum and market structure align.
It combines a directional momentum filter (MACD threshold) with an Ichimoku Kumo breakout confirmation, then executes entries through Bollinger Bands–based STOP orders to avoid entering before the market actually breaks out.
The strategy was built and backtested on DAX / M15 over the window 2017-07-08 to 2025-08-22 on MetaTrader 5 (hedged), using a simple percent-based SL/PT model with a volatility-driven trailing stop.
Core logic
The system uses two layers:
1) Setup filter (confirmation layer)
It waits for momentum to be strong enough and aligned with a clear structure shift:
- Long setup
- MACD (8, 52, 9) value crosses into strong bullish territory (threshold-based)
- and a bullish Ichimoku Kumo breakout confirms the directional shift (Ichimoku 9/26/52)
- Short setup
- MACD (8, 52, 9) value crosses into strong bearish territory (threshold-based)
- and a bearish Ichimoku Kumo breakout confirms the directional shift (Ichimoku 9/26/52)
2) Entry trigger (breakout execution)
Instead of entering at market, the strategy places STOP pending orders at dynamic breakout levels derived from wide Bollinger Bands:
- LONG: place a Buy Stop at the Upper Bollinger Band (BB period 91, deviation 3.46)
- SHORT: place a Sell Stop at the Lower Bollinger Band (BB period 91, deviation 3.46)
Order handling rules:
- Pending orders are valid for 148 bars
- Duplicate trades are disabled
- Replacing existing pending orders is allowed
Risk management & exits
- Stop-loss: 5.2% (percent-based)
- Profit target: 9.2% (percent-based)
- Trailing stop:
3.4 × ATR(60)(volatility-based trail to protect gains) - Friday risk control: forced exit on Friday at 19:00 (reduces weekend gap exposure)
Who this strategy is for
If you want a DAX breakout system that:
- waits for strong momentum confirmation (MACD threshold),
- requires structure validation (Ichimoku cloud breakout),
- and enters only after real breakout confirmation (STOP order at Bollinger edge),
while managing risk with a simple SL/PT model plus an ATR-based trailing stop,
this strategy is a straightforward approach aimed at capturing directional DAX moves without chasing noise.
Key settings (quick recap)
- Symbol / TF: DAX / M15
- Backtest window: 2017-07-08 to 2025-08-22
- MACD: (fast 8, slow 52, signal 9)
- Ichimoku: (tenkan 9, kijun 26, senkou 52)
- Bollinger Bands (entry): period 91, deviation 3.46
- Pending order validity: 148 bars
- SL / PT: 5.2% / 9.2%
- Trailing stop: 3.4 × ATR(60)
- Friday exit: 19:00
