Last update: 1.6.2009

"Teuton" trading strategy

The "Teuton" is a breakout approach making use of a Keltner Channel, that is an EMA plus/minus a multitude of the ATR (Average True Range).
Whenever the market moves outside of the channel, we open a position until the market hits a stop or the opposite channel line.

Trades of too much volatility are blocked by a MACD-block-filter as "breaking-out" happens too often and too erratic then.

Teuton strategy, FESX market:

Teuton, equity curve:

Teuton, a closer look. The trade is exactly opened when the greater volatility sets in and a trend seems to start:

The MACD-Block-filter is blocking periods of too much volatility:

The MACD-trend-filter makes sure that we use breakouts with the major trend:

Short strategy report:
Name of Strategy: Teuton
Setup: Breakout with Keltner Channel
Market: FESX, 1999-2006, 93 months
Net gain: € 19060
Number of trades: 155
Hit ratio: 45.81%
MDD: € 4960
ZEN 5%: 2.09