Het Beurslab closes the month of May 2019 with a small net loss of € 26,00 per lot. Het Beurslab DAX30 algorithm has only taken 3 positions this month. A winning position of € 115.00 and two losing positions of € 57.00 and € 79.00 per lot. After deducting the brokerage costs deducted by IG, the net loss will be € 26.00.
The last long position was promising, until US President Trump twittered at 01.00 a.m. in the night that he would impose further import tariffs on Mexico. Within three minutes the position was stopped out.
The month of May was dominated by mild corrections for almost the entire period. Many movements were temporarily undone. A common pattern was that the index fell one day and rose the next, with most of the movement coming after market hours. Unfortunately, the DAX30 algorithm did not benefit from the days when there was a lot of movement.
See below the four-hour chart of the German DAX30, where each candle represents a trading period of 4 hours.
Since the Trump tweet, important levels of support have been broken in various global markets, including the German DAX. Of course, these can recover, but it is more likely that the indices will fall further in the coming weeks or months. The duration and intensity of this is unknown. In any case, the Beurslab algorithm is better prepared for a very fierce downtrend, as we saw for example in the last quarter of 2018.