Testing a daily strategy

newtrader101

Well-Known Member
#1
Hi friends, I'm here trying to backtest (manually) and implement a simple strategy on daily charts. It uses MACD and Don Chian channels. When it is inside the channel (as most of the time), we may range trade and when it is outside and MACD crosses over, we may buy or sell. Starting from the larger time frame as it is easier. I'm using Heikin Ashi. Standard settings for the indicators.
 

newtrader101

Well-Known Member
#5
what timeframe are you using please ?
It's daily now. Hope to get down to smaller TF later.
But a bit confused to use whether Don Chian or Darvas box.
Also, thinking of adding Bollinger Band width to take the signal after a squeeze.

But I'm again wondering, am I cluttering up my screen again, after taking to simple price action with just a 21EMA? So asked admin to delete/close this thread.
Anyway, here is a Darvas box strategy for intraday:
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primitivetrader

Well-Known Member
#8
Hi friends, I'm here trying to backtest (manually) and implement a simple strategy on daily charts. It uses MACD and Don Chian channels. When it is inside the channel (as most of the time), we may range trade and when it is outside and MACD crosses over, we may buy or sell. Starting from the larger time frame as it is easier. I'm using Heikin Ashi. Standard settings for the indicators.
your basic thought process was right. but the problem is you are not able to make it workable.
price remain is DC indicates theoretically that price is in trading range. and a breakout from is a trend.
now most of the money is made when you align you trade at the termination of trading range of at the breakout of trading range . the key is properly identifying the trading range.use DC as a tool for it but confirm it visually.
what ever tool/indicator you use the motive is always to find whether mkt is in trading range or trending there is not third possibility.
imp is to decide where you want to enter the mkt and on what basis. if you are trading comm they trend more than index.
 

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