FoundLuxWhat it is built for
- Higher timeframes, above all the daily chart
- Markets that tend towards long moves
- If you prefer few positions held for a long time
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Trading bot
Donchian Channel Trend following
The Donchian bot watches the highest high and the lowest low of the last N periods. As long as the price stays in between, nothing happens. When it breaks out, that counts as the start of a trend. A very old, very simple method — and robust precisely because of that.
How the bot thinksDiagram
How it works
The channel
High and low are formed from the last N candles. A short channel reacts quickly and produces many false breakouts; a long one reacts sluggishly and catches the big moves instead.
The entry
If a candle closes above the channel, it buys; below the channel, it sells. Filters on volume and the higher trend sort out weak breakouts.
The exit
An ATR stop limits the loss, a trailing target lets winners run. On higher timeframes a position therefore often stays open for days.
What you set
| Setting | Meaning |
|---|---|
| Channel length | Over how many periods high and low are formed |
| Volume filter | Whether a breakout also has to be confirmed by volume |
| Trend filter | Prevents entries against the higher direction |
| Trailing target | Lets winners run instead of closing at the target |
Everything through forms — no code. Backtest and the Top 50 optimizer run at the push of a button.
When it does not work
- Sideways phases. There every short twitch produces a false breakout. That is exactly what the filters are for — they reduce the problem but do not remove it.
- Short channels. The faster the channel reacts, the more often it triggers falsely.
- Patience needed. On the daily chart, weeks can pass without a single entry.
No bot always wins. Each of the eight has market phases in which it loses — that is why the box on the right is on this page at all. That is exactly what the demo account is for: let it run until you have seen a bad phase, not just a good one.
Step by step
How to set it up
Real recordings from the bot setup — beginner, demo account. Logged in, you see the detailed version with every field and tips.
- 1Choose a bot
Donchian — breakout from the channel
Click the robot button at the top, then pick this bot in the bot window.
- 2Question 1 · What to trade?
Coin, timeframe, direction
Coin, timeframe and direction: auto, long or short.
- 3Question 2 · How much?
Margin, leverage, buffer
Own margin, leverage, extra margin — below it the setup calculates volume, liquidation and committed money.
- 4Question 3 · How to trade?
Channel and filters
Four presets for the large coins: Calm (6h), Balanced, Active and Fast (4h).
- 5Question 4 · When to get out?
Stop and target
Stop by ATR, target ratio, trailing and break-even.
- 6Question 5 · Test first
One click runs all the numbers
Pick a period, then one button calculates fact sheet, backtest and basket — with costs as measured live.
- 7The verdict
One sentence that tells you where things stand
At the top one sentence: does the setting hold or not. Below it the fact sheet with all the numbers.
- 8The basket
The same setting on twelve coins
If it only works on one market, you will see it here — before real money is involved.
- 9Question 6 · Start
You start exactly what was tested
As a demo bot with play money — or live through your own exchange keys, with confirmation, emergency stop and limits.
Try the Donchian Channel
Create an account, configure the bot, test it against the past, let it run in demo mode. No real money, no payment details.