Donchian Channel Trading

[_bob]

Hi guys, is anyone here still keeping this thread alive, or using this method? I’ve recently been reading about the turtles and am putting together a trading plan (which markets, Time frames, entries, exits, stops, position size)to back test and also to run on a test account.

Anyone around to discuss? Did anyone get any success with this long term?

Good to see some old names still around. Bro, it’s going to take some time but go back through the entire thread and try to digest it. There has been some really hard work put in and some cool variates suggested and discussed. I think the one thing we did prove is that DC trading is one of the few time-proven methods out there. But it’s up to you to do the hard work to make it your own.

Best of luck with your journey bro and where are all here to help out and offer a view if we can.

[Trader420]

Good to see some old names still around. Bro, it’s going to take some time but go back through the entire thread and try to digest it. There has been some really hard work put in and some cool variates suggested and discussed. I think the one thing we did prove is that DC trading is one of the few time-proven methods out there. But it’s up to you to do the hard work to make it your own.

Best of luck with your journey bro and where are all here to help out and offer a view if we can.

If you get time, subscribe to this guy, he has been trading DNC’s for years. Thats how I got in to them. Richard used to work for dailyfx. He posts a vid every now and then to give his ideas and what he’s looking for

Richard Krivo

M$M

M$M

[Arbitrager_on_Acid]

hey adrian and rihan,

are you still trading DCs?

I am still trading the same as I was. So far the year has been pretty flat with all of my systems near break even. So I am just waiting for the next big move in fx.

-Adrian

[3xfx]

Glad this thread still alive, one of my favs

[Forexmike]

I am still trading the same as I was. So far the year has been pretty flat with all of my systems near break even. So I am just waiting for the next big move in fx.

-Adrian

hi adrian,

how are you doing?

i am curious what effects the brexit vote and the us-elections had on your DC performance?

[Forexmike]

Glad this thread still alive, one of my favs

still trading DCs?

[TravisN]

i trade donchian channels …very profitable way to trade.

[lexys]

very profitable way to trade.

As with everything else, it depends on how you trade them, and on the trader’s own skills and experience.

The method of Donchian Channel trading originally and famously used by the “turtles”, so long ago, for example, definitely [I]doesn’t[/I] still work now, as has been well demonstrated and published since then. (There are other ways that do, though )

[TravisN]

I dont agree, i trade the exact turtle strategy and using weekly charts and i do very very well

[Forexmike]

As with everything else, it depends on how you trade them, and on the trader’s own skills and experience.

The method of Donchian Channel trading originally and famously used by the “turtles”, so long ago, for example, definitely [I]doesn’t[/I] still work now, as has been well demonstrated and published since then. (There are other ways that do, though )

i also disagree…trading donchian channels is strictly mechanical…so, i would say it doesn’t depend on the traders skills…

[Forexmike]

hi guys,

i am back at trading DCs…last days i read the whole thread again and gave the ideas some thought…

LOL I’m happy to be the back testing *****!!!
…
So this is what I observed on back testing across several pairs on the one hour chart. Using a multiple of ATR as a trailing stop was indeed a viable exit strategy. A multiple of 1 was the most profitable but also occurred the greatest draw down. When it wins it wins big but losses are frequent. At multiple of 2, returns where greatly reduced by still signification. Draw down was reduced but probably of an excessive size especially if you only trade one or two pairs. At multiple of 3 returns again are reduced returns but draw down was the best

Of course there are other factors, I look heavily at expectancy and total trades. And of course know what time of day it is and where about in the monthly news cycle you are. With that said IMO I would stick to the multiple of 2 x ATR. And trade as many pairs as possible. 10 pairs at 0.2% risk is a far better option than 4 pairs at 0.5%.

based on the great testing done by bob when the thread started, i will go with the DC 24 on 1h TF…i am still thinking about going with ATR based trailing stops or better with a classic DC (opposite DC is manual trailing stop, always a position open)…maybe i do some backtests during the weekend and then start on monday…

[TravisN]

Hi there, anyone still using the donchian channel method…i like it …i have made millions using it…how have your experience been

thanks

[Forexmike]

hi travis,

i always have the DCs on my mind, even if i don’t trade them right now…but that can change very quickly

great that you had success using them, maybe you can share some of your experience with us.

mike

[TravisN]

Hi Mike not much to share, i trade the turtle systems with great success…they still work great!!!

[anon7386331]

i trade the turtle systems with great success…they still work great!!!

Commendations on doing unusually well, then - several of the original Turtles (interviewed by Jack Schwager in his Market Wizards series of books) say exactly the opposite, and even explain in some detail why such systems typically no longer work in today’s strikingly different markets.

[TravisN]

i think they all try and optimize it which causes problems with the system…trust me …still and will always work.

[Forexmike]

Commendations on doing unusually well, then - several of the original Turtles (interviewed by Jack Schwager in his Market Wizards series of books) say exactly the opposite, and even explain in some detail why such systems typically no longer work in today’s strikingly different markets.

in other words, you/they think that breakout systems in general don’t work anymore?
because that’s basically the message behind saying that DC doesn’t work in today’s markets…

i don’t think so…breakouts always work as long as price moves…only way that breakout systems won’t work anymore would be if price stays eternally in a tight price range…that’s not the case…not in the past, not now and i doubt that it will in the future…

however, if a system of the past doesn’t work in today’s markets, i think it’s only because one doesn’t adjust the parameters to the current market conditions…let’s say that in times when the turtle system was invented and successful much more and longer trends happened than maybe you just have to change the parameters (go down from the longer DC/timeframe to a shorter) and the same system might work very well in the current market…

mike

[anon7386331]

in other words, you/they think that breakout systems in general don’t work anymore?

I don’t think that and have not seen any of the original Turtles suggest that.

that’s basically the message behind saying that DC doesn’t work in today’s markets

I don’t agree, sorry.

I trade breakouts myself, because all my trading’s based around support and resistance.

But that doesn’t make Donchian channels useful to me, and if you read the Schwager books I mentioned, you’ll see that they’re no longer useful to the original Turtles either, and you’ll see them explaining why much better than I can!

[TravisN]

I find donchian channels and the turtle rules very useful cus it gives me a framework to go by…its simple and makes sense to me…but to each their own.

[Forexmike]

hey guys

i am back to trade DC 24 (1h) breakouts with 2x ATR trailing stop losses…as already backtested by Bob Bill Browne…

maybe i will also have a look at putting the initial trailing stop at the opposite DC (as breakout) and let it trail (with automatic TS) from there…not sure if we already backtested that version

mike