Trend Following30m / Daily CandlesComplexity: Intermediate
Donchian Channel Turtle Trading System
The famous Richard Dennis Turtle Trading methodology. Enters when price makes a new 20-period High/Low and exits when price touches the opposing 10-period Channel with 2-ATR volatility-based unit sizing.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
Long Entry = Close > Max(High, 20); Long Exit = Close < Min(Low, 10); Stop = Entry - (2 * ATR_20)
Deterministic Entry Rules
Long Entry (BUY)
- ✓Price breaks above the highest high of the previous 20 periods.
Short Entry (SELL)
- ✓Price breaks below the lowest low of the previous 20 periods.
Exit Criteria & Stop Loss Protection
Initial Stop Loss2.0x ATR (20) below entry price.
Target ProfitTrend continuation until 10-period exit boundary is touched.
Risk/Reward Expectancy1 : 3.0
Strategy Configuration Specs
Market Segment:NSE Index Futures & MCX Gold/Silver
Candle Timeframe:30m / Daily Candles
Risk-to-Reward Ratio:1 : 3.0
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
Donchian Channel (20 High/Low)Donchian Exit Channel (10)ATR (20)
Risk Management Controls
- •Max 4 unit additions on winners; strict 2-ATR hard stop.
Target Trader Profile:Disciplined trend-following traders seeking systematic macro trends.