Donchian Rsi Strategy

Strategy combining Donchian Channels and RSI indicators. Buys on Donchian breakouts when RSI confirms trend is not overextended.

Testing indicates an average annual return of about 55%. It performs best in the stocks market.

Donchian channels identify breakout levels, while RSI checks whether momentum supports the move. Positions follow when a breakout aligns with RSI direction.

Best for traders expecting a sustained breakout rather than a fakeout. Risk is limited through an ATR stop.

Details

• Entry Criteria:
  • Long: Close > DonchianHigh && RSI < RsiOversoldLevel
  • Short: Close < DonchianLow && RSI > RsiOverboughtLevel
• Long/Short: Both
• Exit Criteria:
  • Breakout failure or opposite signal
• Stops: Percent-based using StopLossPercent
• Default Values:
  • DonchianPeriod = 20
  • RsiPeriod = 14
  • RsiOverboughtLevel = 70m
  • RsiOversoldLevel = 30m
  • StopLossPercent = 2.0m
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: Donchian Channel, RSI
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium