Trade the DAX following Soleimani's assassination: Open Range Breakout
While breakout trading strategies saw some difficulties into the yearly close, given the choppy market conditions in the DAX30 CFD, into the start of the year 2020 the tide seems to have turned a little.
In the first two days of the year the strategy played out well. For instance, on January 3 after the Pentagon launched an airstrike that killed Iranian commander Soleimani, equities and the German index were pushed lower due to markets being in a risk-off mode, meaning that this strategy worked well for those on the short side.
Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD Daily chart (between 05 October 2018 to 17 January 2020). Accessed: 17 January 2020 at 10:00 PM GMT. Past performance is not a reliable indicator of future results, or future performance.
In this article we want to show how traders could have profited from the bearish price action that day with the open range breakout strategy. If you'd like to learn more about this strategy, register now for our Trading Spotlight series and learn about it in real market conditions!
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Let's again recall the three steps of the DAX30 CFD open range breakout strategy:
- Define the open range between 8:00am and 9:05am (CET)
- Identify the advantage: based on the 5-min-EMA (50)
- DAX30 CFD trades above