Weekly Breakout Strategy For QQQ ETF

A simple breakout system to trade the QQQ ETF that uses only one indicator.

Trade Plan:
Instruments – QQQ.
Trading style – Long momentum.
Time-frame – Weekly.
Entry – Simple breakout.
Exits – Initial stop loss and trailing stop.

Trading Rules:
Legend:
DCUp := Donchian Channels upper band (Length 3).
DCLow := Donchian Channels lower band (Length 4).
IntStp := Initial Stop Loss set at 4% below entry price.

Entry Rules:
1. Place a buy stop at the DCUp Price.
2. If buy stop is filled, place the IntStp.
3. However, if orders are not filled, cancel orders at close of the Friday’s trading session.

Exit Rules:
1. At the close of Friday’s trading session, if the DCLow is above the IntStp, than adjust stop loss to the DCLow price.
2. However, If IntStp is above the DCLow, then use the IntStp.

Back Test Results:
Starting Capital – $10,000
Slippage and Commissions – $10 per side
Compound Returns – No
Test History -12/01/1990 to 18/09/2020