Automated Strategies

Donchian Channel Trailing Stop

Developer: FXCM

Are you looking for reliable stop positions for your trades?

The Donchian Channel Trailing Stop is a custom money management strategy that adjusts an existing stop or creates a new stop (if none exists) based on the Donchian Channel upper and lower band levels.

Donchian Channel bands can serve as important support and resistance levels which many traders use to determine their stop positions. With the Donchian Channel Trailing Stop system, this work is done for you in real-time.

Download the Donchian Channel Indicator for free.

*The fields within the ‘FIFO Settings’ parameters section of the strategy apply to accounts based in the US only (FXCM LLC accounts). If your account is non-US, the strategy will manage your existing stop or create a new stop if none exists regardless of these parameters.

INPUTS

The following are inputs available in the application:

  • Trade Ticket: Select which position will have stop loss applied. (Ticket ID is located inside the ‘Open Positions’ window.)
  • Account: Account to trade on.
  • Time Frame: Time frame (“t1′, ‘m1′,’m5’, etc.) that the Donchian Channel is based on.
  • Number of Periods: The number of periods for the Donchian Channel calculations.
  • Close or High/Low: Calculate Donchian Channel based on Close prices or High/Low prices.
  • Pip Offset: Pip Offset set to ‘0’ would set the stop loss order to the exact price of Donchian Channel for the current bar. Pip Offset set to a positive number, 5 for example, would set the stop loss 5 pips beyond the current Donchian Channel value. Pip Offset set to a negative number, -5, would set the stop loss 5 pips before the current Donchian Channel value. Regardless of whether the position is a buy trade or a sell trade, a Pip Offset set to a positive number will result in a stop set further away than the current Donchian Channel value.
  • Only Positive Stop Movement: Select No if you want your stop to move to any value that Donchian Channel generates. Select Yes if you want to restrict your stop to move only in a positive direction. So for buy positions, your stop will only move to a higher price, and for sell positions, your stop will only move to a lower price. Any Donchian Channel values that would move your stop further from your trade’s entry price will be ignored.
  • Manage Existing Stop?: Select Yes if you already have an existing stop loss that you want the strategy to manage. Select No if you want the strategy to create a new stop loss that the strategy will manage. This input is only used for US-based accounts.
  • Stop OrderID: The existing order you would like strategy to actively move. Only used if you selected Yes above for an existing stop. This input is only used for US-based accounts.
  • MagicNumber: Sets a unique identifier for each strategy instance. This should be set to a different number for each instance of the program that is applied.
  • Debug: When set to Yes, this strategy will save a more detailed log of the strategy’s actions. If you experience an issue with the strategy, this allows FXCM to retrieve a log file to investigate the details.
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.

Requirements

This Automated Strategy is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).