DAX - MEAN REVERSION SHORT STRATEGY
A high risk (~270points stop/loss) mean reversion strategy suggesting we'll go below 12650 / 12700 during next week. Risk:reward is currently quite bad (i.e. risk more than you could gain) and the probability is around 57%.
After a "visual backtest", usually we'd get another push up before we'll pull back in similar events in the past. That is, look for weakness on next push up to enter a short with better risk:reward.
Currently guessing on 12900-ish and a failed re-test of the high before we'll go down.
Furthermore, we have 6 green monthly closes behind us. It is quite seldom we get 7 green-in-a-row. Also "sell-in-June" is seasonality wise a good idea historically.
I'd suggest tightening stops on them longs from now on, nothing climbs forever..
After a "visual backtest", usually we'd get another push up before we'll pull back in similar events in the past. That is, look for weakness on next push up to enter a short with better risk:reward.
Currently guessing on 12900-ish and a failed re-test of the high before we'll go down.
Furthermore, we have 6 green monthly closes behind us. It is quite seldom we get 7 green-in-a-row. Also "sell-in-June" is seasonality wise a good idea historically.
I'd suggest tightening stops on them longs from now on, nothing climbs forever..
