Strategy DMI

This strategy is based on the « DMI » (Directional Movement Index) model.

The DMI is composed of

  • The DI+ representing the buyers’ force : The higher is the DI+, the greater is the buying pressure.
  • The DI- representing the sellers’ force: The higher is the DI-, the greater is the selling pressure.
  • The ADX representing the strengh of the trend

So we get the following signals :

  • A bullish signal is detected if the DI+ crosses the DI- upward.
  • A bearish signal is detected if the DI- crosses the DI+ upward.

Efficieny rate of the strategy DMI on CAC40 companies on

Evolution of the efficiency rate of the strategy DMI


Methodology applied :

The methodology applied to calculate the efficiency of a strategy is as follows:

  • Bullish and bearish signals are calculated every evening when the market is closed.
  • The reference price corresponds to the opening price following the detection of the signal.
  • The gain or the loss is calculated over a period of 40 days following the detection of the signal by taking the highest closing price recorded over the period.
  • This period is reduced in case of detection of an inverse signal.
  • The efficiency rate is calculated by dividing the sum of gains and losses on the sum by the sum of the gains.

This efficency is displayed in %.