SleepWell Trade

Trend-Following Backtester · Guide · Strategies 한국어

Strategies

Donchian channel breakout

A new high means a trend starting; a new low means it’s over (turtle-trading style).

Parameters 2 Assets tested 5 Costs 0.5% Optimized Sharpe · 120

The rules

Those numbers are the values optimized for Bitcoin. They differ per asset — the table below lists each.

There are 2 tunable values: entryN, exitN. Fewer knobs make it harder to fit noise, so a count this low keeps overfitting risk relatively contained.

Results by asset

The same strategy across 5 very different assets, each over its full history, with parameters optimized per asset. It beat buy and hold on 4 of 5.

Asset · parameters CAGRHold CAGR Max drawdownHold DD SharpeTradesTime in market
Bitcoin
entryN=37, exitN=8
56.7% 43.7%-39.3%-86.8% 1.406332%
Ethereum
entryN=22, exitN=4
66.9% 30.2%-44.1%-95.6% 1.3810329%
XRP (Ripple)
entryN=34, exitN=2
95.3% 29.5%-46.8%-95.9% 1.336311%
Samsung Electronics
entryN=38, exitN=50
12.8% 15.0%-46.4%-64.8% 0.576462%
Apple (AAPL)
entryN=19, exitN=26
20.1% 18.6%-53.6%-82.2% 0.7421164%
1x 10x 2018 2020 2022 2024 2026 Donchian channel breakoutBuy & hold
Bitcoin 2017-09-25–2026-08-25 · Donchian channel breakout (solid) vs buy and hold (dashed). Log scale.
These are in-sample figures. The same data chose the parameters and scored them, so they sit above what live trading would return. Use them to rank strategies against each other, not as a return target. See optimization and overfitting.

When this one works

Donchian channel breakout belongs to the trend-following family. All of them earn in sustained directional moves and bleed costs in range-bound markets. The trade count and time in market columns above show how each variant leans.

Run this strategyCompare the others

Read next