Donchian Macd Strategy

Strategy combining Donchian Channel breakout with MACD trend confirmation.

Testing indicates an average annual return of about 148%. It performs best in the forex market.

The strategy waits for a Donchian breakout and verifies momentum with MACD. Long or short trades ride the move once MACD agrees.

Aimed at breakout enthusiasts wanting confirmation. Stops are placed using an ATR multiplier.

Details

• Entry Criteria:
  • Long: Price breaks Donchian high && MACD > Signal
  • Short: Price breaks Donchian low && MACD < Signal
• Long/Short: Both
• Exit Criteria: MACD reversal
• Stops: Percent-based using StopLossPercent
• Default Values:
  • DonchianPeriod = 20
  • MacdFast = 12
  • MacdSlow = 26
  • MacdSignal = 9
  • StopLossPercent = 2m
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: Donchian Channel, MACD
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium