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Trade the DAX following Soleimani's assassination: Open Range Breakout

January 22, 2020 10:30

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!

In addition: join our exclusive Trading Spotlight community and each of our experts' trading strategies under real market conditions, see how they perform and what they draw out of their results for their trading!

Let's again recall the three steps of the DAX30 CFD open range breakout strategy:

  1. Define the open range between 8:00am and 9:05am (CET)
  2. Identify the advantage: based on the 5-min-EMA (50)
    • DAX30 CFD trades above

Risk Warning

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.