I was in the chat this morning when a fellow member of TV (@MartyMcFly) brought up an interesting point about the DAX . the DAX and S&P 500 are highly correlated.
SPX500 vs DAX
At the end of the previous month, a BUY signal was generated on SPX 500 ( closed above its 10 month MA ) , but we didn't get the same signal on 30 ( DAX )
DAX ( D vs 200MA)
What would be the results if we used the DAX as an additional confirmation before buying the SPY ? As you can see on the equity curve the below , the result are pretty good. Although the profit factor is lower than simply buying the SPY when > 10 moth MA , the drawdown is lower.
the 'SPY > 10 ma " system is still very reliable , but adding the DAX as an additional confirmation , may be helpful as well.