LIVE DAY TRADING - How I Apply the PbD Strategy on the DAX Future!

Finance-Focused Summary (Markets / Investing / Trading)

The presenter runs a live day-trading session applying a PbD (concept/structure) approach to the DAX Future during a pre-market / pre-session window, emphasizing:

• Pre-analyzing “trade locations” using PbD structure concepts.
• Using order book and liquidity/footprint/liquidity distribution to time entries/exits and place protective stop-losses.

Core Market Narrative

• DAX Future is described as weak, with an expectation of further downside in the opening phase.
• The setup is tied to geopolitical risk via crude oil strength, framed as weakness being “played out” from a resurgent Iran conflict.
• The presenter repeatedly highlights thin liquidity in pre-session, increasing spike/whipsaw risk.

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Tickers / Instruments / Assets Mentioned

• DAX Future (primary traded instrument)
• Crude oil future (macro/relative driver for DAX direction)
• S&P (referenced multiple times; no ticker given)
• EUWAX sentiment (derivatives sentiment indicator on the Stuttgart Stock Exchange)
• Mentions of “EUWAX… derivatives segment at the Stuttgart Stock Exchange” (no specific ETF/stock ticker given)

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Key Price Levels / Numbers / Metrics (As Stated)

DAX Future

• Entry reference: “open a position below 112”
• Stop-loss placement logic:
  • Stop is “above the structure”
  • Later: “If we go back above 25 27… the show is over.”
• Stop/target management:
  • “secure 74 ticks”
• Risk / reward:
  • Risk referenced: “risk involved… 23 ticks”
  • “risk-reward ratio… almost 3”
  • Additional: “good 1:2” risk-reward reference
• Progress markers:
  • “already 62 points in the DAX future”
  • Later: “we now have almost 90 points on the clock”

Other Index / Market Levels

S&P

• Condition/warning: “Should it now go below 6750…”
• Liquidity note: “no liquidity at all up to 7,560”
• Placement context: “S&P… decided to sell off up here now” (relative placement referenced)

Crude Oil (Crude Oil Future)

• “Crude oil remains very stable”
• Turning point framing:
  • “crude oil future is just going over the tops… exhaustion move is coming now”
• Conditional outlook:
  • “If we were to take out 2508… next step where there’s no more liquidity below…”

EUWAX Sentiment

• No numeric level given.
• Qualitative claim: sentiment is “very positive,” with expectation that markets often do the opposite of that positioning.

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Methodology / Framework (Step-by-Step Elements)

1) PbD-Based Pre-Analysis

• Identify trade locations using PbD structure concepts.
• Determine whether price is below/above balance and what that implies probabilistically.

2) Liquidity and Market Profiling

• Use market profile (weekly, VPOC, cash profile) to assess:
  • Where aggressive selling occurred (e.g., “single prints” / aggressive selling pressure)
  • Whether there is evidence of stability or acceptance

3) Order Book / Absorption Monitoring

• Monitor order book liquidity, order speed, and absorption:
  • If sell-side liquidity continues after a break → expect a fast move
  • If aggressive buyers appear below a threshold → the thesis is threatened

4) Footprint Chart Confirmation

• Use footprint/liquidity distribution to judge whether liquidity is “at the bottom.”
• Decide whether a partial exit would have been sensible based on the liquidity read.

5) Stop-Loss Placement and Risk Rules

• Place stops above predefined liquidity/structure ranges.
• Tighten stops aggressively when exhaustion/reversal is expected.
• Risk rule: avoid “moving stop to zero”; focus on the upper edge of the sideways phase / latest liquidity area.

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Explicit Recommendations / Cautions

Recommendations (Trade Management)

• Maintain/take a position based on:
  • Weak DAX structure
  • Liquidity signals
  • Crude oil influence
• Consider partial position taking if sufficiently far from take profit (example: “if you’re still five points away from the take profit…”).
• Tighten stops aggressively when crude oil shows signs of exhaustion (“over the tops”).

Cautions / Disclosures (Risk)

• Pre-session trading is feasible, but risk is greater because the market can be thin and prone to spikes that stop traders out.
• Geopolitical conditions are described as very risky.

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Disclaimers / Disclosures

• No explicit “not financial advice” disclaimer is present in the subtitles.

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Presenters / Sources (Mentioned at End)

• Presenter: “I” (unnamed in subtitles)
• Source referenced: EUWAX sentiment (derivatives sentiment indicator, EUWAX / Stuttgart Stock Exchange)
• Mentions a promoter: World Class Edge (not a market-data source, cited in a quick notice)