50-Week High Entry / 40-Week Low Exit Strategy

This is a simple long term strategy

Entry condition : You will enter the market when the stock’s current high exceeds its 50-week high. This condition enables you to identify upward momentum and capitalize on potential price surges.

Exit condition

Conversely, you will exit the market when the stock’s current low drops below its 40-week low. This exit strategy helps protect your capital by ensuring you withdraw from losing positions before further declines in price occur.

This trading strategy relies on the Donchian Channel indicator to monitor the relevant 50-week high and 40-week low levels. Given that this is a weekly trading strategy, all backtesting will be conducted using weekly timeframes.