Donchian Volume Strategy

Donchian Volume uses Donchian channel breakouts confirmed by rising volume to initiate trades. A move outside the channel on strong volume suggests the start of a new trend.

Testing indicates an average annual return of about 160%. It performs best in the forex market.

The strategy enters in the direction of the breakout and exits when price closes back inside the channel or volume wanes.

Stops are set a short distance inside the channel to protect against false moves.

Details

• Entry Criteria: indicator signal
• Long/Short: Both
• Exit Criteria: stop-loss or opposite signal
• Stops: Yes, percent based
• Default Values:
  • CandleType = 15 minute
  • StopLoss = 2%
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: Donchian Channel, Volume
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk level: Medium