Backtest

Backtest the Donchian Four-Week Rule on BTCUSDT

On the daily chart of Bitcoin it buys when close breaks above the 20-candle range. No stop loss, a close below the 20-candle low closes the trade at the next open.

3 notes about this test
    • The original rule reverses to short on the downside break; Spot cannot short, so the downside break is used as a flat exit only.
    • Four weeks is taken as 20 candles, which on a 24/7 crypto market is 20 days rather than 20 trading days.
    • No stop loss is published, so R-based statistics are undefined and sizing is a fixed notional.

Market

BitcoinBTC

Timeframe

1D

Account

$10,000

History

8.0 years
21 Sept 201819 Sept 2026
RulesFour-Week RuleAdapted from the published rulesmarketcalls.inlearn-forextrading.org

55.2%win rate · 29 trades

RECOMMENDEDWeak evidence
Trades
29
Timeframe
1D
Tested over
2920 days
Time in market
61.6%

high win rate · 29 trades

  • Verdict rules v1

What the data supports

  • Beat buy & hold

    +1801.1% vs +1096.7%

    same symbol, same window · 29 closed trades

  • Months in profit

    54% of months closed up

    15 of 28 months in the tested window

  • Best month

    +285.1%

    2021-05 · 1 of 29 trades · best of 28 months

  • Made money after costs

    profit factor 1.96

    all 29 trades

Trust scoreThe fixed factors behind the trust score, each with its own measurement.

59Weak evidence

C

Grade

RECOMMENDED

Verdict

Net return

1801.1%

+704.5 pts vs buy & hold

Win rate

55.2%

29 trades

Profit factor

1.96

16 wins · 13 losses

Max drawdown

-33.8%

from peak

Strategy replay

BTCUSDT · 1dTrade 20 / 20

Entry

65,057.00

Buy · 15 Jul 2026 · 64 bars

Stop loss

None

Exits on its rule

Take profit

None

Exits on its rule

Result

+16.14%

Exit rule at 75,629.35 · 16 Sept 2026

Monthly returns

Best month

285.1%

Worst month

-18.0%

Typical month

3.37%

Months in profit

54%

Account curve

$10,000

Starting balance

$190,114

Final balance

$119,668

Buy & hold

Wins and losses

55%win rate
  • Wins16
  • Losses13

Rules

  • Buys when

    close breaks above the 20-candle range

  • Stop

    None · no stop rule was given, none was invented

  • Target / exit

    Rule exit · a close below the 20-candle low closes the trade at the next open

  • Risk per trade

    Position: 100% of equity (no stop, so risk cannot be defined)

Monthly heatmap

YearJanFebMarAprMayJunJulAugSepOctNovDec
2019—openopenopenopenopen141.7%-18.0%—open-11.4%—
2020open13.1%—openopenopenopenopen38.1%openopenopen
2021openopenopenopen285.1%—openopen15.0%open10.4%—
2022—openopen-10.0%——open-11.1%openopen-17.3%open
2023open21.5%-10.9%openopen4.1%2.9%——openopenopen
202441.2%openopenopen31.4%-0.4%open-10.3%-15.9%openopenopen
2025open48.1%—openopen8.5%open-9.3%-6.8%open-14.5%—
2026-5.4%—openopen3.8%—openopen16.1%———

Latest trades

29 closed trades

DateDirectionEntry priceExit priceResult
15 Jul 2026long65056.998875629.3511Win
5 Mar 2026long72681.303475524.3921Win
5 Jan 2026long91548.045986653.0259Loss
2 Oct 2025long118618.7090101476.9306Loss
17 Sept 2025long116812.3178108972.6911Loss
14 Aug 2025long123331.1013110089.9576Loss
10 Jul 2025long111256.2468113275.2604Win
23 Apr 2025long93461.6786101488.3883Win
19 Sept 2024long61772.332091534.5694Win
24 Aug 2024long64050.047453952.1774Loss

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