German FDAX Trade Rules


#1

I think someone in the trade room mentioned a trade they called the “Strudel” Trade. I was looking around and found some information on it:

Instrument: German DAX

From what I can tell, these are the rules:

At 7AM EDT start by looking at a hourly candlestick chart.

Watch the 7AM EDT candle to see if it closes green (bullish) or red (bearish). That will determine whether you’re going to buy (green) or sell (red)

If its bullish (green) then buy the first Nadex strike below the close of the 7AM EDT hourly candle with a 9AM EDT expiration time.

If its bearish (red) then sell the first Nadex strike above the close of the 7AM EDT hourly candle with a 9AM EDT expiration time.

That’s it. No other indicators. Should probably take any News announcements into consideration.

You can be more conservative by letting the last candle in the 7AM EDT hour close, then do the trade. You can also chose strikes further away that will vary your risk/reward ratio.

This is NOT an APEX trade or strategy. Demo it before trading it. Provided for educational purposed only. Cam White seems to have worked this trade out for Nadex.


#2

Thanks Jeff. After you made this post, this was posted in the pit:

Here are the abbreviated rules for the Strudel Strategy:

  • Select the 7am-9am EST Nadex time period for the Germany 30 (DAX) Index.
  • Once you are 100% convinced that the 7am EST hourly candlestick will be BULLISH, then BUY at the first Nadex strike price available BELOW the opening price of hourly candlestick.
  • Once you are 100% convinced that the 7am EST hourly candlestick will be BEARISH, then SELL at the first Nadex strike price available ABOVE the opening price of hourly candlestick.
  • If you’re not sure, then wait for the 7am hourly candlestick to close before pulling the trigger
  • Over the past 64 trading days, this pattern has worked just over 90% of the time. This strategy relies on price action.

#3

Jeff, just to confirm you enter the trade after the 7 AM to 7:05 AM bar closes to determine buy or sell. Is this correct? Thanks!


#4

@jeff4155, saw a couple of mistakes in the original post. Fixed them, hope it make things clearer.


#5

I’ve found using the 8am candle and taking to expiry also works with a high percentage.