Advantages of The DAX Day Traders Methodology


After years of research and testing we’ve identified the most important and effective aspects of trading and combined them to produce a hybrid trading environment.

By trading only one market – the DAX – we benefit from the ‘Power of Specialization’ and by trading a very specific A-B-C pattern we benefit from taking high probability, high value trade setups.

The advantages can be listed as follows:

  1. Trading a single market leverages the ‘Power of Specialization’. We liken it to having a best friend who you know intimately instead of a group of people who are little more than acquaintances.

    It’s a high quality, high value relationship!

    Becoming best friends with the DAX will enable you to ‘Experience the Power of Specialization’, strive for excellence and maximize your earning potential.

  2. Our trading edge – the FIBCON/MAB – consists of an A-B-C pattern where trade entry is taken on a retrace/pullback to a zone of confluence. This style of trading has the following advantages:

    a) Optimized risk-reward. 
    b) Accurate & Precise stop-loss placement.
    c) This is the highest probability way you can trade.
    d) Opportunity to enter at a high value level.
    e) Nutures patience, discipline and a rules based approach.

  3. This leads us to another advantage of our approach. Trading intraday provides increased cycles of learning compared to trading the higher time frames such as the Daily and 4 hour where the setups can take days or weeks to form and then days or weeks to play out. This means that even if you’re trading several markets trade setups can be few and far between at times which results in reduced cycles of learning.

    You are also much more vulnerable to events beyond your control that can cause the financial markets to react and turn a winning trade into a losing trade in a moment! 

    Trading this way also requires holding positions overnight resulting in broker swap/commission costs. We do not hold positions overnight so the only broker cost incurred is the spread which for the DAX is currently 1 pip with our broker of choice – LCG

    When trading the DAX intraday the cycles of learning are increased.

    When this is combined with a custom environment whereby the chart structure – Price Action Grid – is automatically overlaid, locked into position and projected into the future it provides a very consistent experience for the user. This supports the learning process and development of the pattern recognition circuitry required to identify great trade setups.

  4. There is great power in community due to the synergy of traders all focussing on the same thing, day in day out. If we’re all trading the same market looking for the same setups then the learning process is greatly enhanced.

  5. We aim for 2R setups which means so long as we limit our risk to 1R you only need to be right 50% of the time to be profitable.

    However, once you learn to trust chart structure you will identify the setups that offer greater profit potential.

  6. The Trade Controller environment can be likened to a flight simulator where we take to the air each day cruising around the Price Acion Grid looking for FIBCONs and MABs to form. Blackbox provide members with the MT4 DAX profiles that incorporate the Price Action Grid we use, this means we’re all looking at the same chart structure.

    Members are therefore provided with a consistent and fixed environment, much like a video game. As the Trade Controller automatically displays trades taken and logs their results to a database the user is freed up to concentrate on trade setups. Risk is predefined and controlled automatically using the Trade Tool and Pending Order tools.

  7. Our approach requires you to be able to trade during 08:00 – 16:30 GMT, this is not possible for people who work full time. However, if you can manage your time such that you can trade either the morning or afternoon session then each regularly offers decent setups.

    This has the advantage of a clearly defined daily trading routine such that when you’re finished you can switch off till the next day. No need for a VPS to host 24/7 trading, no need to monitor multiple markets each day.

  8. We trade Pure Price Action which uses only support and resistance. Indicators and candlestick patterns are not required.

    This keeps the charts uncluttered thus preventing information overload, a problem many traders experience.

  9. We commit to trading the morning session from 08:00 – 12:00 GMT each day. If the routine allows we will also trade the afternoon session.

In summary, the advantages of our approach are:

  • The trader benefits from the power of specialization.
  • The trading edge we use is the highest probability way you can trade.
  • Increased cycles of learning due to trade frequency intraday.
  • The Risk/Reward profile we use means that so long as you limit your risk to 1R then you only need to be right 50% of the time to be profitable.
  • A consistent ‘video-game’ type environment nutures the development of the pattern recognition skill required.
  • The Trade Controller takes care of everything necessary to treat trading as a business freeing you up to concentrate on trade setups and trade review.
  • The Trade Tool and Pending Order Tools allow you to enter trades with precision whilst controlling risk.
  • Being part of a community of like-minded people with shared goals.

The only disadvantage to our approach is that it requires you to be able to trade during 08:00 – 16:30 GMT.

However, if you work from home maybe you can adjust your routine so that you can trade either the morning or afternoon session. If possible we recommend trading the morning session as we will be doing the same.