Does this simple system by Richard Donchian really work?

The 4 Week Rule
The 4 week trading rule system has been at the
heart of many successful trading systems and is
one of the simplest, easiest and most profitable
ways to trade trending markets.
The Rules
The original rules were used for trading
commodities and can be summarized by:
1) Close short positions and go long whenever the price exceeds the highs of the previous 4
calendar weeks.
2) Close long positions and go short whenever the price falls below the lows of the previous 4
calendar weeks.
If run with a SAR (stop and reverse), the above system will always maintain a position in the
market (either long or short).

Filter : 5SMA, Apply for Open and 5 SMA Apply for Close

@ Entry 2PO, SL > 5 SMA line SELL and above 5 SMA line BUY, TP1 = SL/Risk and TP 2 the new 2 week low for short entry and 2 new week high for Long.....

This simple system can working for all trading?????
Please provide your feedback about this system that is packed with as simple and could also with these simple systems can be run and managed well in trading currencies today, give your feedback and your opinion in a forum to exchange opinions. before and after I thank you,

It will work in trending markets, but will get whipsawed by the ranging markets.

hi enivid,

thanks for your advised,
i have put 5sma open price and close price as the filter for two week observation by using RD 4 week Rule
and the result very interesting, for GU and EU, all of SL above/Below this 2 line 5SMA open/close, enclosure the sample of the chart of EU and GU , just have the look at the SL point and the entry point ..
and i don't see any whipsawed if we using on the weekly TF ....

@ Entry 2PO, SL > 5 SMA line, TP1 = SL/Risk and TP 2 the new 2 week low for short entry and 2 new week high for Long.....


cheers

Here another sample buy entry on USDCHF .....
simple to using the RD 4week rule ....

cheers

check this chart , ... is it right ?


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easy robot

here 4 week calender, 4week Previous Low ..... Rule No 2

Enclosure Chart
USDLFX, since 3 week ago that i have been posting a sample chart of rule no 1 till now still valid to going long, interesting RD is only two rule of long and short ...

cheers

another sample of rule no 2 RD
Currency GBPAUD SELL set up

could you please put another chart for buy position?

hi tetis,

Here the sample this week set up for BUY
USDCAD - SL/Risk 64 pips ....

Cheers

thank you mrhb30jr

is this a right setup for selling after break the 4 week low in aud ?

hi tetis u welcome

usdnok ... buy set up.....

Hi tetis,

Pending PO SELL set up, on break out SL > 5SMA

cheers

thanks a lot

hi tetis,
audusd .. short +50 pips

Hi
yes but i took only 30 pips
whats about Nzd/usd?

NU also same when we in TP1 = SL, and TP 2 hold for 2 week new low
good luck

hi tetis aud up dated ..... tp1 hit now tp2 = 2WNLow

Hi all,

GBPJPY - SELL Entry