Dax40 EA is a robust and dynamic trading tool for MT4 designed to trade the DE40 index (also known as DAX40 or GER40). It leverages proprietary indicators—referred to as the “angel factor/period”—that you’ll find within the EA’s input settings. The Dax40 index is a low-cost instrument, with many brokers offering a spread of 0.5 to 1.0 and minimal or no commissions.
How Dax40 EA Operates
This EA monitors the DAX40’s volatility and movement throughout market hours, detecting strong momentum to place trades at the next bar’s opening. Dax40 EA is specifically programmed to trade during the DAX market hours, from 9 a.m. to 8 p.m. Frankfurt time. 
Unlike other EAs, Dax40 EA avoids high-risk strategies like martingale or grid trading. Instead, it operates with a conservative approach, typically opening only 2-7 trades per week and employing a strict stop loss and take profit strategy, set between 40-50 points. Remember, indices are measured in points (1 point = $1 per lot with most brokers).
Recovery Feature for Improved Risk Management
The Dax40 EA includes a recovery function, allowing it to double the next trade’s lot size after a loss for up to five levels. This feature is distinct from traditional martingale, which is unrestricted and can lead to substantial risk. Users can also disable this feature in the EA settings.
Here’s a quick comparison:
| Control Function | Traditional Martingale | Recovery Factor |
|---|---|---|
| Stop Loss and Take Profit | Open-ended, typically no stop loss | Strict stop loss on every trade |
| Levels | Infinite until either ruin or profit | Limited to 5 levels |
| Lot Increase Step | Exponential, risking margin call | Stops after 5 levels |
| Equity Curve | Linear until a sharp drop | Shows minor losses but avoids drastic falls |
| Max Simultaneous Trades | Unlimited, uncontrolled | 1 trade per chart maximum |
The Dax40 EA can be configured to trade with either a fixed lot size or an auto lot setting that adjusts according to user-defined criteria, ensuring low drawdown and making it suitable even for smaller deposits.
Recommended Settings and Requirements
Minimum Account Balance: Varies by broker—some may allow as little as $100, while others may require more depending on lot-to-point ratios.
Primary Instrument: DAX40 (GER40/DE40), also known as DAX30 (GER30/DE30).
Best Time Frames: M15, M30, and H1, though it can be used on other time frames with input adjustments.
Trading Hours: Active from 9 a.m. to 8 p.m. Frankfurt time, with default settings for GMT+2 broker time (GMT+3 in summer). Adjust the settings if your broker uses a different time zone.
VPS Requirement: For optimal performance, use a low-latency, reliable VPS to ensure uninterrupted operation during trading hours.
Recommend running this free forex EA on a VPS (Vultr)Low Spread ECN account is also recommended Icmarket and Exness
