Breakout Trading using the Donchian Channel strategy
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- เผยแพร่เมื่อ 18 ธ.ค. 2022
- The Donchian Channel Breakout System has been around for decades, with many of the best traders in the world using its methodology.
The creator Richard Donchian used the system to manage huge hedge funds with considerable success. The system looks for breakouts of new highs or breakouts of new lows. In essence the strategies concept is based on trend following and momentum.
The video shows how simple rules have achieved excellent returns over the last 30 years (1991 to 2020)
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You’re morally deficient for pushing outdated and nonsensical methods just for financial gain of your conflict of interest in this industry and you’ve shown your true colors in deleting comments you simply do not like. You cannot hide the truth. DONT QUIT YOUR JOB TO DAY TRADE PEOPLE.
FINALLY a really great explanation of the Donchian Channel indicator. Thank you 😊
To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market.
Understanding your financial needs and chalking out a plan remains the smart way to prepare for the unexpected. few yrs in investing space and extremely pleased with the decision I made. The good news is it’s not too late, I'll suggest you find a mentor or someone with experience guide you especially in this recession.
I'm fascinated with investing, as a single parent and juggling all these things are quite difficult. Invested $ in few sectors but haven't seen any profit yet. Don’t know what I’m not doing right
@@logisticsdelivery Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional investment coach
@@victorcardi2019 I’ve actually been looking into advisors lately, I could really use some guide, but are they really that effective though?
@@logisticsdelivery They are solid at their jobs, I've had the opportunity of working with one in and it has been immensely helpful, I had an overall portfolio restructuring. Susan Lorraine Curry is the coach that guides, you probably might've come across her before, she's quite known in her field, look her up
Thanks Gareth. The 4 week modification of the lower level seems very sensible. And I think that another indicator such as the MACD would be essential. The key issue with the Donchian channel is , as you suggest, is the long time scale and the possibility of large drawdowns. Probably unsuitable (again as you noted) for significant leverage. Great clear presentation. And also very concise.
Thanks for fully explaining these channels!
Insightful video. I just want to know best how people split their pay, how much of it goes into savings, spendings or investments. I'm 27, and earn nothing less $150k per year, but nothing to show for it yet.
When people have money, they spend it. And some people spend more money when they have more of it. If you want to improve your financial management, you should consult with a financial advisor.
@@sherryie2 That's right, you can avoid the traps of lifestyle inflation by consulting an expert advisor to help you plan for your short- and long-term goals; it all comes down to proper guidance. Over the past two years and six months, I have seen my income build wealth and now have a fully paid off house and at least $650,000 in stocks. All this is the result of subsequent investments with my savings and the application of expert advice.
@@corrySledd Nice, who is the Financial Advisor aiding you if this is not much i'm asking? my retirement plans are going down the drain with my 401k particularly losing everything it gained ever since 2021.
@@AUstinnesc credits to NICOLE DESIREE SIMON, one of the best portfolio manager;s out there. she;s well known, you should look her up
@@corrySledd Thanks for sharing this. I did my own little research, and your advisor looks advanced and experienced. I wrote her and dialed her twice but she didn't pick up so I scheduled a phone call.
Excellent as always 😊
Thanks again!
Very nice explanation, thanks
You are welcome
I definately like the aspect of the strategy where the strategy cover 20 different stocks that have been max gainers + I think diversifying the amount of sectors they are in and if they are huge or small companies can all accompany such a strategy. Once I have 10K from my current more agressive strategy will start to invest a bit using donchian.
Thanks for sharing!
And, may I ask what software you use to create these great videos?
Honestly the best for current markets.
I am amazed at how good your video graphics are. May I ask how do you make your video animals?
only Michael knows this best gaining strategies love him
GREAT vids. what is your charting service?
We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
People believe their currency has the worth it does because they have no other option. Even in a hyper-inflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
@@mohammeddumadi8323 You are right! I diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above 1.3m in net profit across high dividend yield stocks, ETF and bonds during this red season.
@@Brendavonrohr4 How can I reach out to this coach? because I'm seeking for a more effective investment approach How good is this person at portfolio diversification, particularly with regard to digital assets?
@@Brendavonrohr4 Please I'm very much interested. How can I get touch with this coach, i really want to give her a try.
Interesting video, tks. Anyone knows if theres a study of this strategy where one goes short instead of just staying out of the market?
With everything going on right now, the best decision to be on any creative man's heart is having a profitable investment strategy.
Even with the current dip in the market I'm still glad can smile back at my portfolio of $32,500 built from my weekly trade, all thanks to my advisor fergus Waylen
I definitely agree this current DIP is a huge opportunity to buy the DIP and also high volatility to yield more profit for day traders
I wanted to trade crypto but got confused by the fluctuations in price
@@adokadanla1407 The fluctuations of the market only affect those that hodl coins, but traders makes money on both sides, when it's bearish they go short when it's bullish they go long... The best strategy to use in trading crypto is to trade with a professional, like Fergus waylen he understand the market quite well, that way maximum profits are guaranteed.
I'm honestly surprised that this name is being mentioned here, I stumbled upon one of his clients testimony last two months in CNBC world news and decided to try him out...I'm Expecting my third cashout in 2days
possibly a long term approach like turtles 20-10 donchian could work as well. Most important thing in trading is sustainabitly and staying in the game like cutting losses
Very true
Would you consider giving an explanation on multifactor etfs, how the perform and compare this with your robust MACD approach.. Not an easy comparison...
great channel. Thanks for the added value. I have learned a lot. May I ask if you will update on your website, the portfolio summary with the performance of 2022? Thanks
Just updated the spreadsheet in the members area.
what a great way to change your life! I like it
I think so too!
Very very nice video sir 👌...
I love your video ❤️
So nice of you
Impressive returns... assuming one has the discipline to follow the systems with conviction. Good explanation as always G
Thanks holeefuk
@@FinancialWisdom😂😂😂
🤣@@cryptsncastles1105
What's your opinion on the Bollinger Bands compared to this?
Thanks for the great video as usual. I think your 20 week + macd strategy has better edge than this and is faster to take action for both directions.
I have not found a charting software that allows me to configure the upper and lower band individually. What charting package/service did you use in this video?
Works like this on Forex market? The same setup? thanks master
Awesome way to make money from home! This trading stuff driving me crazy
You can do it!
Good video. The middle line formula is wrong, though, it should be a "+" sign, not a "-" one.
Please, do more lessons about binary options
u mean this for weekly positions (50 and 40) , what about hrly , daily same or 20 and 2 ??
Couldn't you use this strategy on the Russell 1000 itself?
would you have to displace channel forward 1 day?
Does anyone know how can I set up the values in Tradingview? I can't set up different values for both the upper and the lower bands. Thanks.
How to do get the same settings on tradingview? The default donchain channel indicator does not have other settings beside the channel input.
Dos medias móviles una calcula máximos y la otra con minimos
Have you considered the survivor bias brought by only considering stocks included in the index now but excluding those delisted stocks?
Absolutely, survivorship bias is a hidden factor many ignore
Everything works great on a bullmarket backrest..
Let's see how it pans out on a random current stock
Very true although that is why the 100 week rule is there
Greatl video 💪👏😍🙏🎅🎄
Thank you 👍
@Financial Wisdom is there anyway you can do a book review on Al Brooks Reading Price Charts Bar By Bar? I'm so glad I found this channel somehow. You have new Sub and follower 😊
I'll check it out!
@@FinancialWisdom I have the pdf in your interested! Thanks!
Is the DC indicator in this video offset by 1-2 periods? I'm using Tradingview and the DC never shows a candle breaking beyond the upper/lower bands.
New higher or lower dc level is considered a recent breakout
You are my inspiration sir,
I have watched all of your videos and inspired by them.
I have been reading, learning and practicing trading and investing for more than 2 years.....
I have some doubt sir , and I hope you will definitely help me through out this ....
I could be sound foolish 🥺, but please help me ....
Que.1 Can we time the market???If yes then how?
Que.2 Are some indicators enough to time the market??? If yes then which are they ..
Que.3 How to protect my portfolio from major downfalls ???
Que.4 Does Buy and Hold approach work even in today' world??
Que.5 How I can I prevent my capital from opportunity cost that I pay during downtrend and sideways market??
..
Please reply sir.
I am convinced with SL method, but all books that I have read advocates long term investing and compounding.... again and again.....
Please clear my doubts... Making a special video or here
Hy sachin
Market timing is discussed in oneil disciple video and another video recently don't remember title. Avoidind drawdawns also discussed in this channel it's by use of macd. Weekly n daily. Whatever suits u. Same goes for buy n hold approach it's already discussed just look for it in this channel.
Another market timing was discussed just last month. Title market timng!
Your best bet if you want to learn actual trading is to stop watching guys like this. Read anything Euan Sinclair has written and also a good starting point is “Options, Futures & Other Derivatives” by John C. Hull. Proper trading isn’t drawing lines on a chart like a kindergartner and isn’t ez cash like these guys try to tout.
He deIetes my comments so I hope you’ll at least see what I say through notifications because this guy has a long list of keywords for the algos to auto delete for him if he’s not manually doing it himself. I literally can’t type anything but full blown scam bots get to have comments up. This should tell you something.
I have a quick question, theoritically candles will never break above donchian line. Since it measures the highest point and therefore the channel adjusts accordingly. But in your video, it seems that the candle breaks above the donchian line. This may be your platform. This is a big difference especially for backtesting.
Donchian channels are based on the previous n periods. The breakout period doesn’t include itself
Because he moves the indicator forward by one candle
Donchain is a fkn legend
He is, should have said that really:-)
I am just really frustrated the past year having to sit out for so long., What should one be doing during current sideways to down markets?
Bear ETFs?
I am binging your content in a big way. Seems to me, the best strategies for success in trading involve the early breakout and riding the trend. Again and again. Get in, be ready to cut your loss incredibly quick if it even remotely turns against you. The big wins will pay for these 1 percent losers and then some.
It's very difficult wrapping my head around this concept of accepting a string of losers.
Like with anything, you have to get beyond one-itis. Don't buy just one stock ever. Buy a collection of them so you don't hyper fixate and over analyze.
Do one actually re-enter at 4:25 in the month of July? I thought only breakouts count.
nop, he just highlighted that area to indicate the zone the MACD was positive
Look at the annual returns over time since the early 1990’s, snd you will see performance is progressively deteriorating. Even Richard Dennis said in a recent interview there is no real edge left in this
Problems here are survivorship bias on the stocks tested and it was backtested in a period prior to the decimalised system.
Those drawdowns will be much worse when you add in stocks that hit 0
I agree, but stocks usual move to zero in a structured way, thereby being sold through the process.
Is it just me or did anyone notice in the examples of entries and exits given, all were exited at losses? Or am I looking at it wrong?
If your ears tell you one thing, but your eyes tell another. Believe your eyes. Your skepticism will not fail you, at least not now, not with this. Trading is much more complex than what these internet “experts” try to tout.
Correct, but that is part of the game, lose small but win big. Too many experts only show the winning side of trades which is misleading, I show the losers to keep it real to..
@@FinancialWisdom You primarily portray discretionary methods rooted in TA and indicators which is just glorified gambling. Why not things like Arb based strats, Risk premia based strats, Seasonal effects, fundamentals, order flow based strats, etc. yknow… things that are empirically proven to have edge. Also why delete my original comment when it was professional and informative but allow for literal bots to comment straight up scams?
@@songoku8627 I never delete anything. Any yes I use proven approaches including fundamental aspects.
@@songoku8627 i don´t think he´s deleting your comments, i´ve had my comments disappear to me but still be visible to others. What you say sounds interesting, Any more suggestions or recommedations for topics/people to research?
hey, out of curiosity, what was your return for 2022?
very true
Are Donchian bands the same as Bollinger bands?
Nope. Do Donchian bands use highs and lows set to specif periods, as shown in the video, whereas Bollinger bands are standard deviations that track price action more closely instead of plotting horizontal lines at highs/lows.
Do you trade forex and if not why
I'm to old to wait 50 week break-out. 😁 But I like the idea. Let's build a strategy...
Go for it!
$140,000 profits, Surely there is great Good in serving God!!!
That's true! Most failures in the market system today is as a results of poor orientation and bad experts methods in winning
In any country, there are developers who make money. So I say all of this doom and gloom, but there will always be people who make money, because people always want homes
Real estate has been the best but crypto is better rough for fast wealth growth
The best technique to use in the market system is to try with a professional who understands the market quite well, that way maximum profit is guaranteed
@@kenbrats9106Good to hear such, But getting one is easier said than done. If it's not too much to ask, do you know any legit ones?
DIVB etf down 10% after hours, ACWI down 8.6%, what is going on?
And what time frame is this based on?
Weekly
Did you take Survivor bias into consideration?
Good Question, I'm not 100% sure they did.
@@FinancialWisdom I did and percentage will be lower than we have seen now;))
In spite of the fluctuation in crypto, I still thank you for the level-headed financial advice. I started crypto investment with $4,345 and since following you for few weeks now, I’ve gotten $18,539 in my portfolio
Thanks so much Mrs Katherine Haley
You invest with Mrs Haley too? Wow that woman has been a blessing to me and my family
I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.
@Yvonne Foster You can communicate with her on telegam with the user name below
investwithhaleyy💯
Scammer
are you learning about forex too?
Donchian Channel works well for longer time frames, but no better than the10 week moving average.
Please show online trading to support your views
50 week or 50 day(market open) moving average? 50 weeks would be a 250 day moving average.
The problem w breakout trading strategy is always volatility of drawdowns...low Sharpe ratio. It's simple but the skill is hanging on to concentrated positions
True! Things like risk of ruin considerations. In a portfolio of uncorrelated strategies or only being 50% long etc, can definitely have some strong merit however imo
He keeps deleting my comments but just don’t quit your jobbbb tooooo daaaaay traaaaaade. (I have to put it this silly way because he’s adamant in quieting speech).
@@songoku8627 I made millions day trading lol
@@danman1287 Let’s see the KPMG track record (if you even know what that is lol)
@@danman1287 Also, if you are truly a proper trader you should know fallacy like anecdotes don’t discredit empirical evidence. Your anecdote is parallel to my point and in no way disparages it. You making money in the markets doesn’t mean everyone should engage in an activity that has high attrition.
No you do it upside down, why would you buy high and sell low?
No it's buy high sell higher
Ok, whatever rocks your boat, i wouldnt apply this in a bear market tho, or maybe in a reverse way.
The profound wisdom in this content is eye-opening. A book with akin insights encouraged significant growth in me. "Mastering Money Mindfulness" by Benjamin Hawk
what is your MACD settings for this?
Standard setting
@Financial Wisdom I think you could do a part 2 using tradingview! nothing beats live examples.
I think just a video content idea:)
I’m so happy I made productive decisions about my finances that changed my life forever. I’m a single mother living in Melbourne Australia, bought my second house in September and hoping to retire next year at 50 if things keep going smoothly for me.,,*
Sorry for late reply sweetie, I used the FIRE movement to put my finances in order. Then lnvested in stocks, cryptocurencies and reaI estates though the assistance of an lnvestment Pro who helped me make it this big....
OMG....amazing to see someone who trades with Mrs Catherine nathan, i am currently on my 7th trade with her and my portfolio has grown tremendously.
This is not the first time i am hearing of this woman and her exploit trading world but i have no idea on how to reach her
I'm a beginner. How can i get her assistance?
Are my eyes deceiving me? Did you show four trades that were all losers?
.
dont like this one.. looks like Bollinger band.
I dont like this indicator
CAN. U. JUST. BE. MY. BROKER. AND. DO THIS. FOR. ME. 😄
Russel. 1000. TKS
only Michael knows this best gaining strategies love him