Donchian channel breakout in crypto: buying 55-day highs
The old turtle-trader rule applied to coins: buy a coin when it makes a new 55-day high and sell when it drops to a 20-day low.
The rule
Track the highest price of the last 55 days and the lowest of the last 20. A close at a new 55-day high is the entry. A close at a 20-day low is the exit.
Why people use it
Crypto moves in strong, long trends, and a coin that breaks its high often keeps running. The rule needs no forecast and gets out by itself when the trend ends.
Where it hurts
Most breakouts fail: the coin makes a new high and falls straight back. The rule lives on a few big winners and gives back a large part of each run before the 20-day low is hit.
How our bot runs it
Five bots use it on different baskets: the five largest coins, bitcoin with four or nine altcoins, and five or ten altcoins. Each coin gets an equal slot and is bought only after its own breakout; an empty slot stays in cash. A sixth bot uses a faster 20-day high with a 10-day low. A seventh buys 90-day highs and holds while the coin is above its 50-day average.
Live account
A virtual $100,000 account that follows this rule. Every trade is on the bot's page.
| Bot | Account | Return |
|---|---|---|
| 55-day breakout on the top five | $100,000 | +0.00% |
| 55-day breakout: bitcoin and four altcoins | $100,000 | +0.00% |
| 55-day breakout on ten coins | $100,000 | +0.00% |
| 55-day breakout on five altcoins | $100,000 | +0.00% |
| Fast 20-day breakout on ten altcoins | $100,000 | +0.00% |
| 55-day breakout on ten altcoins | $100,000 | +0.00% |
| Altcoins at a 90-day high | $100,000 | +0.00% |