While this may be profitable, it won’t outperform trading the DC in the long term because it will cut more profits than it will save. If it outperforms in a backtest this is simply curve fitting. -Adrian
USDCHF remains below the 200 day moving average but has not moved south much. The early May short entry on the four week channel was stopped out last week with a loss of less than half R. But the ten twenty week channel shorts remain in play.
-Adrian
The sharp drop in GBPJPY had me taking profits on the four week channel this week. But it looks like the week will actually end above that take profit level. The ten and twenty week channel long positions are still on. And the ten week stop will actually move to a profitable level this coming week. These positions were entered long in late April.
-Adrian
The drop in the pound this week was not enough to stop out the long position on the four week which was entered in early-mid June. Any further move to the south in the coming week will close that trade with a loss…
-Adrian
Why do you prefer ctrader? For you what’s the positives over mt4?
I’m coming to the conclusion that I might need to employ a programmer myself 
. How much did yours cost?
Yeah, have to go with Adrian on this one. This week I tolled with the idea of interfering with statistics. I manually closed out trades to lock in profits. Even switched the bots off Thurs night. And I thought to myself, what a clever ducker I am. Friday but, this is what happened on Fri.
To concern with the profits and not trading what the market tells us. Moral of the story trade the rules, never deviated. What ever profits I would of given away earlier in the week, I would have easily made back Fri. Learning how to accept losses is a big part of the game. Lesson learnt.
With that said, week 4 on the demo is in. Might be time to put it to a live account soon.
The problem we face as day traders, which is basically what we are trying to do. We simply have no idea what will happen next in the market. There’s no magical formula. Only historic data. Price and time. All decision we make on improving our strategy needs to proven against that data. Two ways to go about this. Rigorous back testing or data mining. I’m keen to hear if you get some positive results with your work bro.
Personally, I’m not happy with ATR. It lags like all other indicators. In the morning sessions we seem to get stopped out because our stops are too tight. Later in the afternoon, we give up pips because our stops are to wide. So similarly I’m looking this time to excel to explore range. Don’t know what it is I’m looking but thats not going to stop me finding it. Will report in.
Nice work bro. Keen to hear if you can start replicating some of the results I’m getting
Trading platforms? Bro, it just doesn’t matter. Horses for courses as they say. It’s about what works best for you. And as far as looking for a programmer, if your working in MT4 go to the freelance section at mql5.com. Some great programmers there. Here’s a hint but. Look for programmers from South-east Asia. Think what $50 USD is worth to a programmer in Vietnam compared to say the USA.
He has some bugs to get out of it for me. So im kinda bummed ,ihavent been able to really test correctly.
This is what I mean about the bugs. Something very wrong.
eurjpy from 2011 present
dont know what to make of it dont know how to make it bigger for u to see better
i don’t have a lot of free time these days, so i wasn’t able to finish my data research…still keep trading my multi TF strategy, last week was nice 
3xfx , i guess you now have plenty of time to go and enjoy the beaches there in the west coast of Florida… I am jealous , i am here at Las Vegas which is supper sunny but hot as hell. However the humidity is very low which makes it comfortable, still i ratter be at the beach… This has nothing to do with what we do, but i need to trade late at night because of the time difference and the way the markets work and that sucks big time.
lol right know im obsessed with trying to figure what he did with the code. Or if I was a lucky person I stumbled on to a great mistake. but im sure there is something wrong in his code.
The had to shut some beaches here cause water got too hot to quick that there have been cases of flesh eating bacteria. My pool water is too hot to even go in.
what would you consider a (better) system diversification?
to trade same DC settings (e.g 20) on different TFs (1h, 3h, 8h and daily) or trade several DCs on one TF (e.g. DCs 10, 20, 30, 40, 50, … on 1h TF).
Hi Mike
Unfortunately they’re the same thing bro. I’d stick with what you know works and trade multiply TF’s. And it’s not really diversifying. It’s more pyramiding or scaling or whatever the jargon is. Actually it’s hard to achieve diversification trading just forex. At the end of the day the market basically correlates to the USD. Since where the real volume is exchanged (vs traded) and price is set, it’s all done against the USD. So to diversify we need to look at indices, commodities and metals.
Now for an update. Really kickin myself for manually interfering with the bots. Think I’ve missed at least one good run on the EURUSD. But holding it’s own. Held a couple trades over the weekend. Markets suffering from normal Mondayitis.
https://www.myfxbook.com/portfolio/turtle-traders/1279152
hi bob
yes, you are right about diversifying…i keep trading multiple TFs…
really great how your bots work…
i was thinking about trading the channel reversals…putting sell orders at the upper DC and buy orders at the lower DC, maybe using the opposite DC as TP and having a trailing SL of 2x ATR (SL is to be optimized)…
as markets are most of the time ranging we should get a better win% and using SL it might be profitable…
what do you think?
The difference between trading the “same DC settings (e.g 20) on different TFs (1h, 3h, 8h and daily) or trad[ing] several DCs on one TF (e.g. DCs 10, 20, 30, 40, 50, … on 1h TF)” is really only in the way it is described and thought about.
The diversification between the 1h and 3h channels is obviously less than that between the 1h and 10 day channels. I think the magic of system diversification is not in the number (10, 20, 30, etc.) it is in the relative length. The 10 hour vs the 10 day vs the 10 week channels offer a good bit of diversification, but there would likely be little to no difference over the long term between the performance of a trader trading those three and another trading the 11 hour, 11 day, and 11 week channels or another trading the 14 hour, the 14 day, and 14 week channels. The moral of the story here is not to be too concerned with whether we are trading channels of a certain length. The guys that find a big difference between the 12 and 13 period channels are neck deep into curve fitting.
If you put all the channels into the same denomination, (make them all day channels for example) then a trader trading a 24 hour channel, a 24 day channel, and a 24 week channel, is trading 1, 24, and 120 day channels. You can state these three systems either way, it doesn’t matter.
My selection of channels has more to do with increasing diversification and tradability. I can’t trade intraday channels so I don’t try. I trade the ten day channel because it is the shortest that is a bit forgiving and I can adjust it once a day. I trade the four week channel because it is very easy to keep up with and it is twice the length of the ten day. I trade the ten week channel because it generally can capture most major moves, and I trade the twenty week channel because it can catch the major swings even under circumstances of high volatility. The diversification between those four channels is pretty good and if I were to add another I would go out to 50 or 52 weeks or something like that. But if you were to say that I should switch from the ten to the eleven week channel I would answer that the difference would be almost meaningless.
The whole idea is that we do not know how volatility and trends will look in the future. The ten day channel may have performed magnificently in the last two years in a given pair and may actually lose money over the next two years in that same pair while the ten week which lost money over the last two years may give a stellar performance in the coming two years.
The use of system diversification can be termed “scaling in and out” but it is certainly different than a more traditional scaling pattern such as buying more at so many ticks or what have you. Quite literally, system diversified traders can end up long a pair on one system and short the same pair with another. So that fact must be kept in mind. That said, I don’t want people getting this confused with some retarded “hedging strategy”. Each system gives a measurement of volatility, an entry, and an exit. And they are totally independent of one another. The system diversified trader does not care whether one system is long, short, or flat, he follows each system independently without regard for the others. With that, there are spectators that find system diversified traders too flat in a given pair because they are long and short at the same time in two different systems and others find them too heavy in a pair because they have multiple long or short positions in different systems.
The thing to remember is that we don’t know the future and neither does anyone else. Thus diversification is the only way to keep us from trading with biases we have developed by looking at historical data (curve fitted system trading).
-Adrian
The trouble with this is that it will either:
a): result with a higher win/loss ratio but cause losers to be outsized
or
b): result with a simlar win/loss ratio with similar losses but smaller wins
This strategy may actually have merit with very long channels (5 year channels or so) in forex. While such a strategy may be a winning one, it would still be disappointing on the basis of relative ROI or perhaps even risk adjusted returns.
The reason is simple. If the price will move down to your limit buy order or up to your limit sell order it is least likely that it will fill your order and go no further. It is more likely that it will either not fill your order or fill it and go past it putting you into the negative for at least some time. And it is certain that you will be making many counter-trend trades. That said, you need a really high win/loss ratio to overcome that likelihood which means you will need to have wide stops and tight TPs. Thus you will have either outsized losses or undersized wins with close TPs (which is just another way of saying the same thing).
-Adrian
Anyone else see this glitch in their myfxbook? While it appears the red “Growth” line seems to be accurate, the yellow “Equity Growth” line sometimes drops to the red line even though the equity in the account clearly did not do so. Currently the actual equity in the account is over 31% positive, but now for the third time (as you can see in the image) the yellow “Equity Growth” line has dropped down to the same level as the red “Growth” line. In the past, you can see that after such a glitch, the line goes back up to where it should be. I am glad my equity in that account did not go from 37.24% to -22.39% in three days as indicated by the graph.
-Adrian
I use the trade explorer on forex factory…at some place i read that it’s stats are more exact than the ones on myfxbook…
Hi.
Great thread!!!
I did a lot of work with channels (Donchian and other) some years ago so I figured I’d share some (archived) information here (Winzip files for download that contain the Adobe .PDF documents):
Donchian Channel BreakoutDetails some history, compares different variations or trading systems based on Donchian Channels, etc.
Donchian’s 20 Guides To Trading Commodities
As the name suggests.
High Probability Short Term Trading Strategies
Take a look at “Turtle Soup” and “Turtle Soup Plus One”.
The Original Turtle Trading Rules
As the name suggests.
Regards,
Dale.