Donchian Midline Crosses with Band Targets and ATR Stops

Summary

This strategy uses a Donchian channel to define a midpoint between the recent highest high and lowest low. It enters long when the close crosses above that basis and short when it crosses below, provided the signal falls within an optional trading session and configured date window. New entries are allowed only while flat.

For each position, the script places a stop at a distance of three ATRs from the signal close and sets a limit target at the corresponding outer Donchian band. It exposes the channel length, session, timezone, ATR length, and date range as settings, and plots the channel and trade levels. The excerpt includes a stated backtest window in 2026, but supplies no reported performance figures. Its behavior therefore cannot be judged from results here; session choice, instrument, timeframe, execution assumptions, and the relationship between entry and target bands may affect outcomes.

Key ideas

• The midpoint of a Donchian channel is the directional signal line.
• A close crossing above or below the midpoint triggers a long or short setup when filters allow it.
• Stops are placed using an ATR multiple, while the opposite channel boundary provides the profit limit.
• The strategy includes optional session and date filters but the excerpt provides no performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.