Donchian breakout trend system
This is a daily Donchian channel breakout trend following system for ES and crude oil futures. It enters on 20 day breakouts, exits on 10 day counter breakouts, and uses a 2x ATR initial stop with 1% risk per trade and...
Market Futures
Style Breakout
Timeframe Swing 4h-1D (1d)
Level Intermediate
Tools ATR, Support and resistance
Saved 1 time
Run 0 times Tested
Testing needs market data for this symbol. Past results do not guarantee future results.
The rules
Setup Lane (first to light up) futures Instrument(s) ES, CL Primary timeframe daily
Entry Entry trigger close above highest high of last 20 days for long; close below lowest low of last 20 days for short Order type market
Stop Initial stop 2 times ATR 20 ATR length (if ATR stop) 20 ATR multiple 2
Exit Trailing stop method longs: close below 10 day low; shorts: close above 10 day high
Risk Risk per trade 1% Max concurrent positions 4
Strengths Clear, rule based entry and exit signals that remove discretion. Trend following can capture large moves when markets trend strongly. Risk per trade is fixed at 1%, and position limits cap total exposure. Using daily closes filters out some intraday noise and false breakouts. Risks Whipsaws in choppy or range bound markets can cause repeated losses from false breakouts. The 2x ATR stop may be too tight for volatile daily moves, leading to premature exits before trends resume. Correlated positions in ES and crude oil can increase effective risk beyond the nominal 4% if they move together. No exit rule for time or trend exhaustion, so profits can give back significantly before the 10 day exit triggers. Source
A JustWavey pick: a well known public strategy, written out in plain words by the JustWavey team.
Version history
Version Saved Changed boxes 1 2026-10-17 First version
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