Germany (DAX): trend-following strategy vs buy & hold
Equities · tracked with iShares MSCI Germany ETF (EWG)
EWG holds large and mid-sized German companies — industrials, carmakers, chemicals, insurers and software — closely related to the DAX index. It is priced in US dollars, so the euro exchange rate is part of the return.
Growth of 100 since 1996
buy & hold · total returnBuy & hold total return of iShares MSCI Germany ETF (EWG). The Strategy Alpha results and live signal for Germany (DAX) are part of Plus.
What drives Germany (DAX)
Global trade and industrial demand, energy prices, the European Central Bank and the EUR/USD exchange rate.
How a trend-following strategy handles Germany (DAX)
German equities are cyclical and export-driven. In US-dollar terms, currency swings add to the trends — sometimes amplifying them, sometimes offsetting them.
Our Strategy Alpha applies the same simple, rules-based trend filter to every market: invested while the trend is up, in Treasury bills while it is down, checked once a month. It is not a forecast — it is a discipline that aims to keep most of the long climbs and sit out the deepest drawdowns.
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Educational content, not investment advice. Backtested results are hypothetical and do not guarantee future results. Disclaimer.