Any one use Donchian channels?

[FTSEBOY]

Hi there,
Just thought I'd post this question to T2W in the hope that someone may be able to help. Basically I was wondering whether anyone has ever used or is using Donchian Channels whilst day trading. I believe that they are very useful in trending markets but not so on trading markets? Any thoughts or experiences would be most appreciated.
Cheers
FTSEBOY

 

[Henry]

I ran a load of backtesting a while ago using two channels - one fast one slow, taking entries and exits when they crossed. As you say, works great in a trending market, but gets chopped to pieces the rest of the time. I was looking for a simple mechanical system, and the backtesting suggested that over a long period of time it would make money, but the results were hardly sparkling.

Just noticed your location - did you move under the pier whilst they were building that nice new entrance? ;-)

H.

 

[FTSEBOY]

Donchian channels

Henry,
Quite new to the game so I am just trying new indicators etc after wearing a few losses due to inexperience and that fact that the builders have been making loads of noise making this bloody new entrance!!!
FSTEBOY

 

[JonnyT]

FTSEBOY,

Nice location. I have a very true story about Southend Pier. Many years ago I was on a cricket tour and had consumed a few bevvies after the game. Needless to say I ended up in an Nightclub. No sooner had I walked through the door when a young lady came up to me and asked if I was Gay. When I said no she said thank you God and plunged her tongue down my throat.

A few minutes later we left the nightclub and cemented the new found relationship under the Pier. I then went back to the Nightclub where my mate said where have you been! I've got a pint for you. I drank it with a rather large smile on my face. I really am a slag.

Come to think of it, it was Southsea Pier but it's near enough ;o)

JonnyT

 

[JonnyT]

PS I forgot to mention I have backtested Donchian Channels and do not think it is a very good method in todays markets.

JonnyT