SCOTT WELSH TRADING BLOG

This Week: The Power of Keltner Channels

This Week: The Power of Keltner Channels

September 5th, 2018

As promised, this week begins our detailed discussion on many various systems.

The goal is that you’ll find some information that improves your trading. Maybe you’ll test and trade these systems “as-is”. Or maybe you’ll use this information as a starting point to build a new system of your own using some (or all) of these ideas.

As always, I love to hear your success stories, and I hope this helps.

What systems will we discuss? According to the emails I’ve received the past few days, here’s what you’re most interested in:

  1. 63.0% of you are most interested in Forex.
  2. 21.7% are interested in Futures.
  3. 15.3% want to hear about Stocks.

 

The split between long-term trading and daytrading was just about equal. I’ll try to hit all of those subjects at some point.

This week, we’re going to begin with a Keltner Channel system. We’ve talked about this before, but this time we’ll apply it to Forex.

And here’s the format.

The first email you receive will be a quick overview of the system of the week. The following emails will be much shorter and be focused on simply the system information. That way you won’t have too much reading to do each day.

So, without further explanation, let’s begin with our system of the week.

  • System: Keltner Channel Breakout on Forex
  • Philosophy Behind It: “Normal” pricing occurs within the Keltner Channels. A move outside the channels potentially signals a breakout move.
  • Need Special Indicator? No. Keltner Channels come in all trading packages.
  • Chart: Daily
  • Instrument: GBPUSD
  • Long or Short? Long Only
  • Entry: Break above Keltner Channel
  • Settings: Keltner Channel set to default settings (20 length, 1.5 ATR)
  • Hypothetical Profit: $20,803
  • Hypothetical Max drawdown: -$6,921
  • Profit target: 210 pips
  • Stop loss: 260 pips
  • Trade size: 0.5 lots
  • Hypothetical account size: $10,000
  • Test Period: 2001-2018

 

Last few things.

I will be sending out multiple emails each week on how this system trades on other instruments. If you’re on the email list, you’ll get all that information. FYI, I’m only posting the first email on my blog. Join the email list here.

I will also be doing a video on each system on my YouTube channel here. In that video, I’ll show exactly how the entry is done.

Keep in mind that all the settings will only be available in the emails. No settings will be given in the videos. It will just be the mechanics of that particular system plus a few other things.

Got it?

As you know, I love to talk about systems. More to come next week.