Donchian Channel LWMA Strategy - 87.2 % Return on Account
Requirements
- Beginners, no experience needed.
Description
How to trade the Donchian Channel with the Linear Weighted Moving Average 4-hour strategy?
Trading strategies can be highly individualized, and the following is a generalized approach combining the Donchian Channel and the Linear Weighted Moving Average (LWMA) for a 4-hour timeframe strategy.
Here are the steps for implementing the Donchian Channel with the LWMA 4-hour strategy:
1. Set up the Donchian Channel: Calculate the upper channel line, lower channel line, and middle channel line based on a specified period. For this strategy, we use a 20-period Donchian Channel.
2. Set up the LWMA: For this strategy, we use a 10-period LWMA.
3. Identify bullish signals: Look for opportunities to enter long (buy) positions when the following conditions are met:
· The price touched the upper channel line of the Donchian Channel.
· The price of the LWMA above the 10-period indicator, indicating a bullish trend.
· Set the a stop-loss order below the middle line swing low.
4. Additionally, determine a profit target based on your risk-to-reward ratio. In this case 1:1.25
5. Identify bearish signals: Look for opportunities to enter short (sell) positions when the following conditions are met:
· The price toouches the lower channel line of the Donchian Channel.
· The price of the LWMA below the 10-period indicator, indicating a bearish trend.
· Set the a stop-loss order above the middle line swing low.
6. Additionally, determine a profit target based on your risk-to-reward ratio. In this case 1:1.25
7. Monitor and manage the trade: Once you have entered a trade, monitor it closely. You may consider adjusting the stop-loss and take-profit levels as the trade progresses, based on the evolving market conditions.
Remember that no trading strategy guarantees success, and it's essential to practice risk management by controlling position sizes, using stop-loss orders, and avoiding overexposure to any single trade. Additionally, backtesting and demo trading can help you assess the effectiveness of the strategy before applying it to real-market conditions.
Who this course is for:
- Beginners.
Instructor
- 4.7 Instructor Rating
- 20 Reviews
- 964 Students
- 5 Courses
My name is Kenneth Bach. I have been in the financial sector since the midt nighnties where I started working with one of Denmark’s biggest pension funds.
I have traded ETFs, options and derivatives in the form as Indices, Forex and Commodities.
I have always had a fascination of what a quatitative approach, mathmatics, computer science and common sense can do combined.
In 2003 I started my own investment management company with my own funds. Then came family, friends and at last some outside capital. I guess you can call it the classic route.
In 2013 the company was converted into a real Hedge Fund, registered and regulated in Denmark and Luxembourg.
I sold my interest in the company in 2018. I have since traded Forex full time.
I do still administer outside funds, but this time on a much lower scale and in a different way. I use the MAM – Multi Account Management - system of my broker.
I do also send automated trading signals to a small number of clients.
I have been asked by friends and clients if I could help and teach them to become traders. And ofcourse I could.
So, I have experience in teaching real people to become real traders, trading real funds and making real profits.
I am sure I can teach you as well.
I am going to teach you some profitable strategies that you can implement right away.
The total lectures are going to be 1-1.5 hours long and will teach exactly what to do and how to do it.