Trend Following with Donchian Channels and MACD

Robrecht99 Updated   
This is a trend following system based on the Donchian Channels. Instead of using a simple moving average crossover, this system uses the MACD as the trendfilter:

Long positions:
* Price makes a new 50 day high,
* The MACD-line crosses above or is above the Signal-line.
* Both the MACD and the Signal-lines are above the zero-line.

Short positions:
* Price makes a new 50 day low,
* The MACD-line crosses below or is below the Signal-line.
* Both the MACD and the Signal-lines are below the zero-line.

The initial and the trailing stoploss are 4 ATRs away from the price.

Release Notes:
Removed the MACD from the chart.
Changed entrycondition3 = macd and signal >/< hist to 0
Increased the pyramiding amount to 4 from 3
Release Notes:
Release Notes:
Replaced the multiplier in the position size formula with syminfo.pointvalue in order to get a more accurate position size.
Release Notes:
Release Notes:
Reverted the pyramiding setting from 4 back to 1 to keep the system simple and the max drawdown low.
Added a visual ATR trailing stop, so you know where to put your stoploss.
Release Notes:
Adjusted the position size formula.
Improved the stoploss multiplier.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


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