"Panther" trading strategy
The "Panther" is a contrarian approach making use of a Keltner Channel, that is an EMA plus/minus a multitude of the ATR (Average True Range).
Whenever the market moved outside of the channel and comes back inside we open a trade, expecting the market to make a counter-movement unto the other side of the Keltner channel.
Trades are only done in the direction of the major trend. The strategy therefore is a version of "trading retracements", one of our favorites.
As volatility is very different in the years 1999 to 2003 compared to 2003 until today we had to invent an Adaptive Keltner Channel, where the parameters of the time span, on which the EMA is calculated, and the factor, by which the ATR is multiplied, are linked directly to the volatility. The Keltner Channel needs to be wider in volatile days and the EMA to be smoother then.
(Parameter set and programing code of the Adaptive Keltner Channel is disclosed to trading-course subscribers only!)
As the parameters of the setup indicator are fixed to volatility the risk of over-optimization is relatively quite small. We have enhanced the strategy with a trailing stop.
This version with an Adaptive Keltner channel is a modification of the original "Panther" strategy and we call it "White Panther".
Panther strategy, FESX market:
Panther, equity curve:
Panther, a closer look to early years (wide and erratic channel, long range EMA):
Panther a closer look to later years (narrow channel, EMA close to the price curve)
Short strategy report:
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Name of Strategy:
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White Panther
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Setup:
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Contrarian with Adaptive Keltner Channel
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Market:
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FESX, 1999-2006, 93 months
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Net gain:
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€ 38226
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Number of trades:
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272
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Hit ratio:
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69.85%
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MDD:
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€ 5002
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ZEN 5%:
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4.19
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