PROTON - This is how you trade the DAX (R)

PROTON is capable of trading the DAX both long and short. The DAX index exhibits oscillating patterns, occasionally providing opportunities for short trades. However, due to the nature of the stock market, PROTON generates significantly more trades on the long side. There are market phases, though, where investors can benefit from declining markets as well. Below, you will find the analysis of the PROTON system for both long and short trades, including the number of realized DAX points per year.

Implementing PROTON Signals with DAX Products

Many private investors, especially in Germany, use Open End Turbo products for trading the DAX. These products are offered by numerous issuers. At Quant4you, we’ve directly linked DAX Open End Turbos from HSBC, UBS, BNP Paribas, and others to the PROTON trading signals. To implement PROTON signals with Open End Turbos, simply select the issuer and leverage, and place a limit buy order with your chosen Open End Turbo. Upon execution, set the sell or stop limit for the next day.

With direct interfaces to six different brokers, orders can be transmitted seamlessly from the Quant4you portal. Even if your broker isn’t integrated with Quant4you, placing an order takes less than a minute per day, making it convenient for all traders.

Example: PROTON System on the Quant4you Trading Terminal

The system calculates the purchase price, target price, and stop price for each leverage/Open End Turbo and issuer directly in the terminal, simplifying order placement.

Performance Examples for Open End Turbo Implementation:

• Portfolio Capital: €5,000
• Capital Investment per Trade (Partial Position): €1,000
• Leverage: 5x and 15x Open End Turbo on the DAX
• Maximal Positions: Up to 5 partial positions in one direction (LONG or SHORT)

This means approximately €3,300 per year with a “Leverage 5” Turbo (67% return p.a.) or around €10,000 per year with a “Leverage 15” Turbo (200% return p.a.). Profits were not reinvested. In scenario A, the portfolio capital is earned back in about 1.5 years, while in scenario B, it’s earned back in about 6 months on average.

PROTON with CFDs or DAX Futures

For traders using PROTON with contracts like CFDs or Futures, understanding annual gains and losses is crucial. The analysis shows that trading 1 CFD per trade or 1 Micro-DAX Future (1 Euro per point) with the PROTON system since 2011 resulted in a maximum cumulative loss of around €20,000 per year.

• Average Annual Profit: Approximately €7,350 with 1 CFD per trade or 1 Micro-DAX Future.
• Increased Profit: Each additional CFD contract per trade increases the average annual profit accordingly.

Using Mini-DAX (5 Euros per point) quintuples the average annual profit to around €36,000. With a maximum of 5 Mini-DAX contracts in one direction, a portfolio capital of around €45,000 is required due to margin requirements (varies by broker). CFDs allow for easier capital deployment. Adjusting the number of CFDs per trade enables starting with smaller amounts.

PROTON’s profitability can also be graphically represented over time. For instance, with 1 CFD per trade (1 Euro per point), the system shows consistent and attractive performance over the calculation period.