I am using 20 period donchian channels as a trading system. Basically, I use ATR based trailing stop. When using donchians is it important to keep track of RBI announcements, company results, calamities like earth quakes, terror strikes etc? My dilemma is that if I exit before the day of news announcement, I might be able to avoid huge gap ups/downs that will trigger my stop loss with huge loss. However, if I stay put, I might loose a lot if the move goes in my favor.
All I can think of is maintaining correct position size rules. How do you all handle this situation.
Also, when using donchian channels as a trading sytsem, how do you handle natural calamities like earthquakes etc, terror strikes? Do you stay put waiting for the stop loss to be triggered or do you exit immediately? I know it is subjective but want to hear from somebody who has been trading successfully using donchian channels as a trading system.
Thanks
All I can think of is maintaining correct position size rules. How do you all handle this situation.
Also, when using donchian channels as a trading sytsem, how do you handle natural calamities like earthquakes etc, terror strikes? Do you stay put waiting for the stop loss to be triggered or do you exit immediately? I know it is subjective but want to hear from somebody who has been trading successfully using donchian channels as a trading system.
Thanks