Dual Donchian Channels for Turtle Breakouts and Stops

Summary

This trend-following method combines two Donchian channels. The slower channel sets breakout entries: a move above its upper boundary signals a long, while a move below its lower boundary signals a short. The faster channel’s midpoint serves as the stop level for either position. The described defaults use 50 bars for entries and 20 bars for stops, with position size based on a stated 2% risk setting and channel-derived distance to the stop.

The document explains the intended benefits of filtering for sustained moves and controlling per-trade risk, and lists chart aids such as position shading and drawdown labels. It provides configuration and a short BTC-USDT futures backtest window, but reports no performance results to validate its claims. The approach can be whipsawed in active or sideways markets, and fixed channel lengths may not fit changing conditions. The source also does not demonstrate the proposed adaptive stops, overnight data, or multi-market extensions, so these remain suggestions rather than tested features.

Key ideas

• The slower Donchian channel defines long and short breakout entries.
• The faster channel midpoint is used as the exit stop for both directions.
• Position size is calculated from the configured risk percentage and channel-based stop distance.
• The document offers no reported backtest performance, and channel breakouts may be vulnerable to whipsaws.

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