Similar to our Turtle EA, this system is a Price Channel or Donchian Channel breakout system that adds 2 moving averages. The moving averages help confirm the trend direction to filter out false breakouts and reduce whipsaws. Of the two moving averages, one has more bars in its calculation and the other has less bars in its calculation. Long positions are taken when the shorter MA (less bars) is above the longer MA (more bars) and the price breaks out of the upper price channel. Short positions are taken when the shorter MA is below the longer MA and the price breaks out of the lower price channel.
As trends develop and the price begins to make new highs or new lows, the price will break through the upper or lower price channel and the two moving averages will help confirm the trend to try and reduce the number of whipsaw trades. The secondary price channel works as a trailing exit. This EA uses Percent Volatility position sizing to be able to treat any symbol or tick value the same to keep losses small with a fixed risk percentage as the lot size is