4-2

Trading contrarian swings. FESX (15 minutes). A triple smoothed Stochastic (“StochTEMA) gives signals. Here we see a buy signal as the StochTEMA moves below 14. The trade is closed when it hits the other extreme at 86. Trades are only allowed when the RAVI (a good trend indicator) is below his Moving Average.

The result of this approach looks pretty good in those years. It worked well during the bearish times of 2008 and early 2009 and had no problem to adapt to the change in trend in 2009.

This strategy would have worked with the German bund as well.