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Strategies

Donchian channel breakout

A new high means a trend starting; a new low means it’s over (turtle-trading style).

Parameters 2 Assets tested 5 Costs 0.5% Optimized Sharpe · 120

The rules

Those numbers are the values optimized for Bitcoin. They differ per asset — the table below lists each.

There are 2 tunable values: entryN, exitN. Fewer knobs make it harder to fit noise, so a count this low keeps overfitting risk relatively contained.

Results by asset

The same strategy across 5 very different assets, each over its full history, with parameters optimized per asset. It beat buy and hold on 4 of 5.

Asset · parameters CAGRHold CAGR Max drawdownHold DD SharpeTradesTime in market
Bitcoin
entryN=43, exitN=8
60.5% 41.2%-37.6%-86.8% 1.485430%
Ethereum
entryN=16, exitN=7
76.3% 27.1%-54.7%-95.6% 1.339742%
XRP (Ripple)
entryN=35, exitN=2
90.8% 25.7%-48.0%-95.9% 1.296611%
Samsung Electronics
entryN=24, exitN=68
13.2% 14.2%-50.9%-64.8% 0.566374%
Apple (AAPL)
entryN=32, exitN=50
20.4% 18.8%-72.6%-82.2% 0.7211170%
1x 10x 2018 2020 2022 2024 2026 Donchian channel breakoutBuy & hold
Bitcoin 2017-09-25–2026-07-30 · Donchian channel breakout (solid) vs buy and hold (dashed). Log scale.
These are in-sample figures. The same data chose the parameters and scored them, so they sit above what live trading would return. Use them to rank strategies against each other, not as a return target. See optimization and overfitting.

When this one works

Donchian channel breakout belongs to the trend-following family. All of them earn in sustained directional moves and bleed costs in range-bound markets. The trade count and time in market columns above show how each variant leans.

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