Hi Greg, you have a Model 1889 pattern Cavalry Degen. It is a generic pattern used by most of the Imperial German States with different guards attached to indicate what state the sword belonged to. Most have a straight blade but there are rarer sabre blades as well. You sword appears to be a dress/parade version, often bought by retired soldiers or troopers as a mementoe(sp!) of thier service or for parade use.
Imperial sword knots are a complex study as they were used to distinguish rank, regiment as well as state. According to "Swords of Germany 1900 - 1945" , by John Angolia, a sword such as yours would have a black leather knot with 2 silver wire strands, silver ball and stem with a green insert in the bottom. There are regimental patterns to the knots so I can't be sure if such a knot would be 100% correct (few collectors would know the difference). Saxony had a fairly large army so you might get lucky. Look to spend 150+ for a basic one though.
I hope this helps, nice sword.
Cheers,
Greg
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