Keltner Channels Like Gold

Keltner Channels Like Gold

May 17, 2024

Subscribe to my YouTube Channel HERE.

This week we’re looking at Keltner Channel breakouts.

They worked pretty well on the ES and much better on hard-trending NQ.

Following that progression, let’s test Keltners on Gold, which at times can be the hardest-trending instrument out there.

For this test, we’ll use 150 minutes. This is longer than the previous two.

And we’ll go both Long and Short.

Here are the details:

150M Keltner Channel Gold Breakout 

  • Long Entry: When price closes above the upper Keltner Channel (Length 80, ATR 2.0)
  • Short Entry: When price closes below the lower Keltner Channel (Length 80, ATR 1.5)
  • Target: $1500 per contract
  • Stop: $2200 per contract

A few things. One, our Long entry has a wider ATR. That means it’s harder to get Long trades. Two, the target is smaller than the stop. That’s weird for breakout strategies. Let’s see what we get.

Using Portfolio Architect, here’s how it’s done since 2002 trading 1 contract each time on a sample $20k account:

That’s not especially good. What’s the trouble? Short trades.

Going Short doesn’t work very well with Keltner Channels apparently. So, we’ll take them out.

Here’s the Report with only Long trades:

That’s much better from any metric. Better profit, less drawdown, higher win rate.

Here’s the Curve for Long Only:

Looks good. It’s up almost 800% during this period.

Here are some Long trades:

Overall, are Keltner Channels as good as Bollinger Bands™?

Not quite. But I reserve the right to change my mind and they’re definitely worth looking into.

Talk to you soon.

Join the free Newsletter list here .

 

Get Robot information HERE.
Visit my Performance Page HERE.
Buy my new book HERE.
The Inevitability of Becoming Rich
is HERE.
My latest YouTube video is HERE.

 

Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.