In this post I will be reviewing the DAX Day Trader EA which is an automated trading system that can analyse charts, place and manage trades on behalf of the user. Whilst automated strategies may seem like an attractive proposition for anyone who does not have the time or knowledge required to trade manually, there are some important things to consider before you use any trading robot.
DAX Day Trader Robot Strategy
The DAX Day Trader expert advisor uses a forex day trading volatility system. Sometimes currency pair prices move more quickly than at other times. The speed or degree of the price change (in either direction) is called volatility. As volatility increases, the potential to catch big moves quickly, also increases. However, the problem with that is higher volatility can also mean higher risk.
How does volatility trading work?
In forex trading, volatility is a measure of how prices or returns are scattered over time for a particular currency pair. It is a key metric because volatility creates profit potential. However, trading on volatility can also create losses, if traders do not learn the appropriate information and strategies.
Typically, forex traders talk about four different forms of volatility, again depending on what they are doing in the currency markets. This chapter discusses the four different volatilities: future volatility, historical volatility, forecast volatility, and implied volatility.
Some of the most commonly used tools to gauge relative levels of volatility are the Cboe Volatility Index (VIX), the average true range (ATR), and Bollinger Bands. Standard deviation is probably the most common way to measure market volatility.
What is the DAX Day Trader Robot?
The DAX Day Trader software attempts to eliminate the need for the user to implement a volatility strategy by doing everything for them. It uses a built-in trading algorithm that will constantly analyse the chart for buy or sell signals. Once it finds an opportunity, it can take a position and manage it without the user needing to do anything.
The problem with this is that automated trading software cannot account for things that the human eye can see. It may also not be aware of fundamentals such as major news releases which can have a significant impact on market movement. This is why it is important to make sure you adjust the position size used by the DAX Day Trader EA to something that you feel comfortable with and never risk more than you can afford to lose.
The DAX Day Trader Robot takes positions that usually last around 1-hour or less based on historical testing. It does not use any possibly dangerous grid trading strategies which is a bonus. All of the settings can be customised according to your own needs or you can use the developers pre-optimised “straight out of the box” settings.
This is another forex robot from the LeapFX team whose other forex software I have previously reviewed, including Funnel Trader, Trade Explorer, AX Trader, DynaScalp, News Action Trader, Jet Trader Pro, Gold Trader, Arbitron, Econ Power Trader, Automic Trader, Auto Arb, Fund Trader, Easy Money X-Ray Robot, Skilled Trader, Pattern Trader Pro, Trend Hunter Robot, The Money Tree Robot, Quick Scalp Trader EA, Wave Scalper EA and InstantEA.
It doesn’t trade as frequently as say a Forex Scalping EA does because it is quite picky on the entry but there are still plenty of trades and this can help to remove some of the bad signals.
DAX Day Trader Back Testing
The developers have kindly shared some backtests over a decent amount of historical data. You can download them on the DAX Day Trader website and have a look through the vital statistics including drawdown, profit, loss, average win, average loss, profit factor, etc. The modelling quality is high which is good but it does look like there is some potential for high drawdowns to occur with this EA so be aware of that.
DAX Day Trader Results
I am pleased to see that LeapFX have shared some real DAX Day Trader results that have been verified by Myfxbook. There is also a demo account for good measure. It looks like both accounts have been doing reasonably well at the time of me writing this DAX Day Trader Review, but of course things can change and we should never take historical results as a guarantee of future performance. To see the latest live verified trading account performance of all forex robots please visit my best forex robots results page.
That being said, it has held up well so far with acceptable drawdown although it has only been up and running for a few months. You can see the latest performance in the Myfxbook charts below to see if the performance has continued. I would usually prefer to see a forex robot that has results over many years, such as Forex Robotron.
DAX Day Trader Summary
Overall, I certainly see some potential with the DAX Day Trader Strategy and the LeapFX team have been around for many years so should know what they are doing. There are real and demo accounts that have been verified whereas the volatility trading strategy implemented within the DAX Day Trader EA does make sense.
However, I would like to see verified results over a longer period of time to see how this automated forex strategy holds up through different market conditions. I am also not a fan of the developer claiming guaranteed profits because if many years in the forex industry has taught me anything, it is that anything can happen.
You could always test the DAX Day Trader Robot on a forex demo account to get a feel for how it works and see what to expect without taking any risks. You can get a free demo account from most forex brokers including IC Markets. They are one of my top choices of broker for manual and automated forex strategies because they have plenty of liquidity for tight spreads and fast execution speeds.
The DAX Day Trader EA includes detailed instructions, full support, free updates for life, default set files and a money back guarantee.
DAX Day Trader$497
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.