Donchian Macd Strategy (C#)

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 at a fixed percentage of the entry price.

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 = 2
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame() A breakout is a close beyond the highest high or lowest low of the previous DonchianPeriod candles. The MACD reversal exit closes a long when MACD crosses below the signal line and a short when it crosses above it. An entry signal against an open position reverses it.
• 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