Donchian Breakout Strategy

Script from: TradingViewSwingTrend followingBreakoutMomentum

The Donchian Breakout Strategy is predicated on entering trades when prices breach the upper Donchian Channel and exiting when prices fall below the lower channel. The strategy is enhanced by including a moving average filter to avoid counter-trend trades and features customizable backtesting dates. Subsequent updates introduce adjustable lookback periods for more favorable results, high time frame moving average filters, ADR-based trade selection, and an innovative trailing stop mechanism for optimized risk management.

Audit verdict

Not rankedUpdated Jul 28, 2026

No reliable edge found

Its average result can't be told apart from chance, so it stays out of our rankings. The script itself passed our repainting audit.

534backtests3 markets

33robust scoreranked median 52

0.36p-valueranked median 0.24

0/106pass quality gatebacktests >15 trades

Audit details

How we decide whether a strategy enters our rankings. Read the methodology →

Repainting audit

7 of 8 checks passed.

strategy() with calc_on_every_tick=true or recalculate_on_every_tick=true

Found on line 13. Disable calc_on_every_tick/recalculate_on_every_tick for stable backtests unless truly required.

✓

Script availability

Open-source, still published on TradingView.

Statistical edge

Average t-statistic 1.14 (p = 0.36), below the median of 1.98 (p = 0.24) for ranked strategies.

Quality gate

None of the 106 backtests with more than 15 trades passes our quality gate.

Robust score

33/100, below the median of 52 for ranked strategies.

How its evidence compares

The t-statistic measures how far the average result sits from zero relative to its noise. Below about 2, it is within what random entries produce.

1.14

avg. t-statistic

1.98

median, ranked strategies

Best 5 of 534 backtests

Shown for transparency.

Symbol	Timeframe	Net profit	Profit factor	Trades	Max drawdown
Marathon Digital Holdings, Inc. NASDAQ:MARA	1D	+6,496%	5.46	18	38%
Marathon Digital Holdings, Inc. NASDAQ:MARA	1H	+2,608%	1.05	264	88%
Riot Platforms, Inc. NASDAQ:RIOT	1D	+2,407%	16.56	19	62%
Riot Platforms, Inc. NASDAQ:RIOT	4H	+1,785%	1.32	81	53%
Marathon Digital Holdings, Inc. NASDAQ:MARA	4H	+1,212%	1.07	80	89%

⚠Selected after the fact: these are the best 5 of 534 runs, not what to expect from this strategy.

Is Donchian Breakout Strategy profitable?

Not reliably, based on our tests. Across 534 backtests, 0 of 106 with more than 15 trades pass our quality gate. The best result is +6,496% on Marathon Digital Holdings, Inc. (1D, 18 trades). On average, its results are statistically indistinguishable from chance (p = 0.36).

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