If you’ve ever wondered how professional traders consistently spot and manage opportunities in the market, today’s Trade of the Day is the perfect example.
On 3rd September, Tom, one of our senior trading strategists at Trendsignal, broke down a shorting opportunity on the German 40 (DAX) market that delivered 69 points in just 42 minutes.
Let’s take a closer look at how the trade was identified, what rules confirmed it, and what that could have meant for you in terms of profits.
The 5-Step Process to Spotting Trades
At TrendSignal, every trade setup follows a simple, repeatable five-step process designed to take the guesswork out of trading.
Here’s how it worked on this trade:
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Black arrow flip – signals a new potential trade setup.
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Vector averages – momentum shifted to red, confirming bearish sentiment.
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Candle position – the candle was below the midpoint of the sell channel, confirming direction.
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R-Ratio – positive at 20.71, showing the market wasn’t compressed.
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Trend line alignment – intermediate trend turned orange, matching the trade direction.
All five factors lined up, meaning this wasn’t just a random guess—it was a valid, high-probability short trade.
The Results: What It Meant in Profits
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Entry time: 11:16 AM
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Exit time: 11:58 AM
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Duration: ~42 minutes
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Movement: 69 pips
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Stop size: ~32 pips (about 3% risk-to-return ratio)
Now, here’s where it gets exciting:
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At £1 per pip, that’s £69 profit.
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At £3 per pip, it’s £207 profit.
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At £6 per pip, it’s a powerful £414 profit—all from a trade that lasted less than an hour.
This is the kind of income potential that rules-based strategies can unlock for everyday traders.
Why This Matters for Traders
The beauty of this approach is in its simplicity and consistency. There’s no chasing the market or relying on hunches. Instead, traders follow a clear checklist, know exactly when to enter, and manage trades with confidence.
For beginners, simply following the black arrows provides a straightforward way to learn and practice. For more advanced traders, there’s scope to maximize returns by managing trades beyond the basic exit points.
Either way, the system provides clarity where most traders struggle with confusion.
Want to See These Trades Live?
If you’d like to learn how to apply this strategy yourself, the best next step is to join our free live trading webinar tonight at 7PM.
In the session, we’ll show you:
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How to identify trades step by step, just like this one
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The rules that remove emotion and second-guessing
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Real examples of trades that could help you build a second income
Don’t just watch trades happen - learn how to take them yourself.
