Donchian 4 week method

SoyUnPerdedor said:
Why is 4 weeks anything special? Why not 3? Why not 5? Anything special about 4? Is there data supporting 4 being the right number?
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im sure that at the time (1970s), in those market conditions, 4wks tested better and or performed better than the others. There is nothing special about the 4wk mark...the only number that should matter is the one that tests best for you, then try in real time to refine further.
 
zghorner said:
I like the simplicity...I listened to a pretty good interview lately featuring Nick Radge who has run a really simple trend strategy for decades that you might enjoy...perhaps geared a bit much towards neophytes than you would like but still some decent stuff in there (linked below).

I think you really have to be comfortable with a loose stop for this to work...like approaching 20%. I would back test the 4wk breakout using various stops for a better idea what would work best in the current market...then maybe try 5wk, 6 wk, etc...

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%%
Good trend comments;
he likes monthly data for trends.
 
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