Donchian Channels Trading Strategy

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11/17/2020 at 7:03 AM #150733 quote

kalleklovn

Participant

Junior

Hi can some one help me code this as you can not use the Donchain channels for trading in proreal time.

I have a youtube link explaining the strat https://www.youtube.com/watch?v=icYe2SS3-4M

But if you dont want to watch it and read her it goes.

You use the 200EMA as a filter from when to buy and sell. Price under only sell price over only buy.

Then you want to buy when the Donchian Channels make a new high with the stop loss below the lower Donchian Channels low.

i would also want a trailstopploss to follow the lower band.

The opposite goes for sell.

Hope some one understands and can help. let me know if something is unclear.

Have a nice day and happy trading:)

11/17/2020 at 8:33 AM #150739 quote

robertogozzi

Moderator

Legend

There you go (not tested):

Defparam CumulateOrders = false
N             = 40
LookBack      = 50
UpperDonchian = highest[N](high)
LowerDonchian = lowest[N](low)
Sma200        = average[200,0](close)
L1            = close > Sma200
S1            = close < Sma200
L2            = UpperDonchian < UpperDonchian[1]
S2            = LowerDonchian > LowerDonchian[1]
L3            = UpperDonchian[1] = highest[LookBack](UpperDonchian[1])
S3            = LowerDonchian[1] = lowest[LookBack](LowerDonchian[1])
Lcond         = L1 and L2 and L3
Scond         = S1 and S2 and S3
If Not OnMarket then
   NewSL = 0
Else
   If PositionPerf > 0 Then
      If LongOnMarket then
         NewSL = max(NewSL, LowerDonchian)
      Else
         NewSL = min(NewSL, UpperDonchian)
      Endif
   Endif
Endif
If Lcond and Not OnMarket then
   Buy 1 contract at Market
   Set stop Loss abs(close - LowerDonchian[1])
   Set Target pProfit 200
Endif
If Scond and Not OnMarket then
   Sellshort 1 contract at Market
   Set stop Loss abs(close - UpperDonchian[1])
   Set Target pProfit 200
Endif
If OnMarket and NewSL > 0 then
   Sell      at NewSL Stop
   Exitshort at NewSL Stop
Endif