Bybit Copy Trading Gold&FX offers effortless diversification into gold and FX markets, passive income opportunities, and a transparent profit-sharing model.

 has emerged as a great way to become quickly profitable, even in markets one may not be intimately familiar with, by replicating the orders and strategies of experienced Master Traders. And for experienced and successful Master Traders, it has created unique opportunities to efficiently earn additional profits.

Recognizing the growing popularity of copy trading, Bybit has introduced a new product, Copy Trading Gold&FX, which allows traders to seamlessly follow the market moves of experienced Master Traders and leverage their expertise to earn profit in 

 (FX) markets. Skilled gold and FX trading pros can now share their moves in real time and earn income based on profits they generate for their Followers.

Beyond the usual benefits of copy trading, Bybit’s Copy Trading Gold&FX allows traders to diversify their investments into the established, high-liquidity gold and FX markets. For many crypto traders, such diversification is key to hedging against the high volatility and risks associated with the 

 is Bybit’s latest innovative copy trading product targeted at the high-liquidity lucrative markets of gold and FX. 

Thanks to Copy Trading Gold&FX, Master Traders can monetize their trading expertise by helping their Followers turn a profit, while Followers without prior trading experience can effortlessly derive passive income through replicating professional strategies. The product focuses on gold, FX pairs and market indices.

 (MT5) platform. Bybit’s MT5 provides traders with access to various markets and products, including FX pairs, metals and other commodities.

Bybit Copy Trading Gold&FX operates differently from 

 For example, Copy Trading Gold&FX allows trading in gold, FX products and market indices. In contrast, Copy Trading Classic is designed for futures trading. Another highly important distinction is in the way profits are shared.

While both Bybit Copy Trading Classic and Copy Trading Gold&FX allow Master Traders to earn a portion of the net profits generated by their Followers, Copy Trading Classic calculates the net P&L daily, with the profit-sharing ratio based on the Master Trader’s rank. On the other hand, Copy Trading Gold & FX utilizes a High Water Mark (HWM) mechanism for profit sharing where Followers' profits are shared with Master Traders only when the net profit, which includes both realized and unrealized PnL, surpasses its previous peak. This is designed to ensure that Master Traders are rewarded for consistent profitability. A percentage of up to 15% can be shared.

Trading fees on the Copy Trading Gold&FX account vary by type of asset traded and are charged per lot. FX and gold are charged $6 per lot, and market indices are $3 per lot.

Trading volume within your Copy Trading Gold&FX account counts toward qualification for 

. This is a set of VIP grades for Bybit accounts that provide additional benefits and fee discounts commensurate with the VIP level achieved. However, note that volumes from Copy Trading Gold&FX are subject to a 10x multiplier for VIP level qualification to ensure that volume calculations for FX/Gold and the standard futures products are equalized, despite the typically large differences in trading lot sizes.

Unlike the standard copy trading account, which is based on daily profit sharing, profits from Copy Trading Gold&FX are shared once per week. The MT5 platform automatically calculates weekly distributions, and seamlessly shares the profits from Followers to their Master Traders using the HWM principle mentioned above.

For Master Traders,a copy trading account offers the valuable opportunity to monetize their trading expertise. Meanwhile it provides Followers a passive way to earn, with profits shared only if their Master Trader consistently achieves and beats their best results.

Bybit Copy Trading Gold&FX allows traders to diversify into the highly liquid, stable and well-established markets of gold and FX. Such diversification away from relying on crypto can be a great hedge against the volatility of the crypto market, or any potential prolonged bear markets in it. Thanks to the copy trading mode, even traders new to these lucrative markets can reap the benefits of diversification by copying the moves of FX and metal commodity pros.

Followers can learn from the trades and strategies of top performers in the FX and gold markets. Besides easy profitability, this provides an outstanding experience for learning and skill development.

Bybit’s MT5 platform provides a user-friendly interface, with functions and tools for traders at all levels to derive the best from their copy trading experience. An MT5 Copy Trading Gold&FX account ensures that the entire trading experience is as seamless as possible by providing advanced options, such as automatic trades and over 

90 indicators for thorough market analysis.

The HWM profit-sharing model ensures that Master Traders are motivated to maximize their Followers’ profits by consistently achieving profitability and surpassing their previous bests. Additionally, all trading moves of Master Traders are transparently visible, which helps to foster trust in the platform. Potential Followers can also view the leaderboard of the most profitable Master Traders, and choose their preferred trading 

There are, of course, risks associated with a Copy Trading Gold&FX account. First, there’s the risk of reliance on third parties outside of Bybit’s control, as Copy Trading Gold&FX is linked to the international forex and commodities markets. Secondly, masters’ past performances are not an ironclad guarantee of their future profitability. 

Additionally, Followers and Master Traders might initiate the same order based on different entry prices, due to factors like network delays or sharp, quick fluctuations in the asset’s price at the time of order execution. These price discrepancies may result in distinct outcomes. Finally, despite its unique benefits, the HWM profit-sharing model could motivate some Master Traders to adopt increasingly risky strategies in order to maintain their profit cuts.

Bybit Copy Trading Gold&FX is an excellent option for traders looking to become profitable from gold and FX markets. It also provides numerous other benefits, such as diversification away from crypto, a great learning experience and the transparent nature of this trading mode. The innovative HWM profit-sharing mechanism ensures that Master Traders give their best to maximize their Followers’ profits. 

With all of these advantages for Master Traders and Followers, Copy Trading Gold&FX is 

 for traders at any levels of experience.

Intermediate

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Benefits of Bybit Copy Trading Gold&FX: Unlock Your Profits With Ease

An MT5 demo account is a risk-free trading environment that simulates live market trading on MetaTrader 5. Read our article to get started with Bybit Gold&FX.

Want to master trading cryptocurrencies, forex and CFDs (metal, oil and indices) without risking your own capital? Bybit's 

 demo trading platform provides a simulated environment in which users can practice trading strategies, test automated systems and gain hands-on experience with professional trading tools.

In this guide, we'll explain what an MT5 demo account is, how it works and its key benefits, and provide step-by-step instructions for setting up your own demo account. We'll also help you decide if creating a demo account is right for your trading journey.

An MT5 demo account is a risk-free trading environment that simulates live market trading with MetaTrader 5. It lets traders use virtual funds to practice trading crypto, forex and CFDs while accessing all platform features and tools.

The Bybit MT5 demo account works by creating a 

 to give traders hands-on experience without financial risk. Operating on its own dedicated server (Bybit-Demo), the platform delivers real-time market data with intentional price variations to maintain a clear distinction from live markets while preserving realistic trading conditions.

Traders access the environment through Bybit's Testnet platform, where they can experiment with virtual funds and test trading strategies risk-free. Every aspect of the trading experience mirrors the live platform — from order execution mechanics to position management tools — ensuring traders develop practical skills that transfer directly to live market trading.

The MT5 demo account comes with the same professional tool kit found on standard MT5 accounts:

The platform maintains leverage settings and margin requirements identical to those in live trading accounts. These authentic market conditions allow traders to experience true market dynamics, build proper 

 habits and perfect their position-sizing strategies before trading with real capital.

Here's what makes the MT5 demo account an essential tool for traders.

Live market trading involves real capital and significant financial risk, often creating intense pressure that can impair learning and decision-making. The MT5 demo account eliminates this stress by providing a zero-risk environment in which traders can open positions, test aggressive strategies and learn from mistakes without monetary losses.

The MetaTrader 5 platform offers sophisticated trading tools that require time and practice to master effectively. By using the demo account, traders can thoroughly explore these features without pressure or time constraints.

Traders can spend time learning different chart types, testing various technical indicators and mastering complex order executions. This hands-on experience with the platform's tools builds the confidence and competency needed for successful live trading.

Successful trading requires well-tested strategies that perform consistently across different market conditions. The demo account serves as a laboratory where traders can methodically test their trading ideas, refine entry and exit points and optimize position sizing rules.

The platform provides detailed trading history and performance metrics for thorough strategy analysis. This allows traders to identify and fix weaknesses in their approach before risking real capital in live markets.

Beyond technical platform knowledge, the demo account helps develop essential professional trading skills. Traders learn to interpret market dynamics, understand how economic events affect prices and develop the emotional discipline needed for consistent trading.

The platform's real-time feedback helps traders understand their decision-making processes and improve their market analysis abilities. This practical experience creates a solid foundation for successful transition to live trading.

How to Get Started With an MT5 Demo Account

: Log in to your account. If you have a new account, fill in your email address and create a secure password. Click on 

 and verify your email if prompted. Only a Bybit Main Account holder can activate a Bybit MT5 Account.

: Congratulations! Your account has been created! Your 

 tab. You can also view your details when you click on 

. Keep the following login credentials (provided in the pop-up window) safe, as you'll need them to access the MT5 demo platform:

 in the drop-down menu, and select the amount of demo funds you would like to receive. You can choose from 

: Now that your demo account is funded, scroll down the page to download the MT5 platform based on your device’s operating system. For computers, you can download MT5 for Windows or macOS. Mobile traders can find the app on 

Optional: Set Up Your Trading Preferences

: Customize your MT5 interface by clicking on 

: Configure your charts and trading workspace:

: The demo server time zone is set to UTC+2 by default, and changes to UTC+3 during daylight saving time (DST). This setting cannot be modified.

An MT5 demo account is worth considering if any of the following apply to you:

Whether you're just starting your trading journey, or are looking to enhance your existing skills, the MT5 demo account offers the perfect balance of professional tools and risk-free practice. Take advantage of this opportunity to build your confidence and expertise before transitioning to live markets.

A Bybit MT5 demo account serves as an essential stepping stone along every trader's journey. It combines the powerful features of the MetaTrader 5 platform with Bybit's robust trading infrastructure, allowing you to practice trading cryptocurrencies, forex and CFDs risk-free.

While demo trading can't completely replicate the emotional aspects of live trading, it provides an ideal environment in which to master the platform, test strategies and prepare for managing real capital. Take advantage of this free resource to help build your confidence and refine your trading approach before transitioning to live trading.

Beginner

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MT5 Demo Trading: How to Set Up Your Bybit MT5 Demo Account

President Trump announced a private-sector investment of up to $500 billion to fund AI infrastructure, aimed at advancing U.S. leadership in the technology.

The S&P 500 hit a record high, rising 0.61% on strong earnings and optimism about Trump's policies. Investors await more earnings and jobless claims data. Gold rose above $2,760, driven by uncertainty over Trump’s tariff policies. Investors focus on the Fed’s January meeting, with key resistance at $2,763 and downside support at $2,582. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 2.67%, with Bitcoin and Ether dropping by 1.75% and 2.26%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is WLD, which surged nearly 5.5% following the boost from Trump's AI investment plan.

Worldcoin (WLD), founded in 2019, is a blockchain project that uses biometric eye scans to create unique digital IDs, ensuring privacy. Participants receive Worldcoin tokens for verification, granting access to free money. Co-founded by Sam Altman, it aims to build a global ID system and facilitate transactions via the World App, with $115 million raised in its Series C funding. Worldcoin's price surged after Trump announced a major AI investment plan involving OpenAI. The news boosted the crypto market, with Worldcoin's market cap rising significantly. AI-related projects also saw gains as traders grew optimistic about AI's influence on crypto.

Check Out the Latest Prices, Charts, and Data of 

 a private-sector investment of up to $500 billion to fund AI infrastructure, aimed at advancing U.S. leadership in the technology. The initiative, led by OpenAI, SoftBank, and Oracle under the joint venture "

," will include the construction of 20 data centers and create over 100,000 jobs. The project, already underway in Texas, is expected to support AI advancements like electronic health record analysis. The investment comes after the rollback of AI-related regulations from the Biden administration. Shares of Oracle and other tech companies saw a rise following the announcement.

Yesterday, BTC Spot ETFs experienced total outflows of $95.6 million, comprising $47.9 million from GBTC and $47.7 million from non-GBTC sources.

, with claims starting today at 1 PM UTC on the Arbitrum chain. The current pre-market price is $0.10. Eligibility includes Azuki NFT holders, top HYPE stakers, and holders of select tokens from platforms like Aave, Camelot, GMX, and Pendle. It's mainly targeted at whales, though some non-whales may qualify.

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Trump Unveils $500 Billion AI Infrastructure Investment to Boost U.S. Leadership

GoPlus is a web3 security provider whose user-driven security network provides protection for every step of the transaction lifecycle. Learn more here.

While online transactions offer a lot of convenience and speed, they do come with some potential security risks. Although problems like scams, hacks and data leaks are infrequent, some crypto traders end up having to deal with them. GoPlus hopes to solve these issues with its revolutionary security system. This project aims to be the first decentralized security layer for 

 builders. GoPlus has already managed to acquire many impressive customers, and has big plans for the future. 

What can users expect from GoPlus? Explore this guide to learn more about the system. 

 is a web3 security provider. Its user-driven security network provides protection for every step of the transaction lifecycle. GoPlus seamlessly integrates into products built on 

, Avalanche, TRON, Base and a variety of other chains.

Since its creation in 2020, GoPlus has been run by a group of three co-founders. The lead founder, known as Mike Lee, has also created other web3 startups, such as Delphy and Yixuan Tech. His experience working on decentralized markets demonstrated a need for better security services. Lee was joined by co-founder Allen Zhang, a former solution architect for Ant Group, and co-founder Eskil Xu, an economist who focuses on entrepreneurship and business.

Since its public launch in 2022, GoPlus has managed to attract a lot of positive attention. Its investors include Binance Labs, Animoca Brands, OKX Ventures and HashKey Capital. The platform has an average daily API call rate of 

, and it has protected clients from over 800,000 malicious threats.

GoPlus is tackling the issue of poor security in the web3 world. While blockchain products have significant inherent security, current setups make it quite easy for malicious actors to take advantage of customers. Industry reports suggest that the web3 industry loses 

GoPlus's focus is on addressing common security issues that can steal money from non-tech-savvy crypto users. However, the GoPlus team recognizes that the people most vulnerable to scams don't have the know-how to install their own security measures. Therefore, GoPlus aims to be a flexible system that can be added directly to web3 systems. Its team endeavors to create a helpful tool that any web3 project can connect to its network in order to keep users from falling for phishers and other scammers.

GoPlus is essentially set up as a decentralized software provider. The GoPlus ecosystem consists of a group of interested data providers, node providers, security developers and other contributors who provide computing power, store data and suggest changes to the GoPlus system. The trustless design requires contributors to stake tokens, so malicious actors lose money while valuable contributors earn it. 

GoPlus’s system then runs a comprehensive set of security features that any web3 developer can choose to install. Once GoPlus is connected to a 

 (DApp) or other part of a web3 ecosystem, user transactions are routed through various layers of the GoPlus architecture. Individual layers — such as data verification, anti-phishing and data security — provide security features as needed. Sophisticated security engines within the architecture can do everything from tracking common scammer IP addresses to dynamically testing smart contracts for vulnerabilities.

GoPlus has a robust suite of security features from which to choose. Following are the primary ways it provides value to web3 developers and users.

The GoPlus app is a comprehensive security module meant to combine all of GoPlus's features in one easy location. The app is accessible from a variety of devices, and enables users with full control over all their security needs. They can opt into and out of various security policies, and set their own risk levels.

The GoPlus Security API is a set of application programming interfaces that allow various applications to communicate with GoPlus and access its security features. The Security API suite from GoPlus has a modular design that allows users to choose from options, such as token security analysis, malicious address libraries, NFT security assessments and phishing site blockers.

GoPlus's Security SDK is a collection of software development kits that make it easy to integrate GoPlus features directly into any project. Interested developers can access a bundle of pre-coded security features that they can insert into their own designs.

 makes it easier to create and deploy secure cryptocurrency tokens. It includes open-source token contract templates, pre-audited designs and automated security checks. 

 chain that allows direct integration of security features into blockchain networks. The main benefit of SecNet is its on-chain firewall that monitors transactions in real time and stops high-risk transactions from running. 

In 2024, GoPlus was able to achieve many of its road map goals, 

 SecNet, SecHub and the SecWare protocol. Now that the basic protocols for the GoPlus security ecosystem are in place, GoPlus is transitioning to improving its customer service features. The next focus of the

 entails implementation of the security gas service model that will let contributors use the GPS token to protect on-chain transactions. 

GoPlus also plans to open its developer platform and create an open-sourced playground where community members can tinker around with new features for GoPlus. The final plan on the 2025 road map is to add support for more blockchains. 

The GPS crypto token is designed to facilitate the decentralized operation of the GoPlus platform. People can use it to pay for transaction fees and security features from GoPlus, and to help manage the staking system that secures the GoPlus network. The token’s total supply of 

 will be distributed in the following manner:

Since its release on the open market, the GPS token has almost doubled in value. Coin prices initially started at around $0.05, and quickly reached an all-time high of $0.1199 on Jan 22, 2025. Since then, its price has mostly stabilized within the range of $0.1191 (as of Jan 22, 2025). However, GPS is still a fairly new coin with a lot of potential for price change.

Though it's still too soon to get exact pricing predictions for GPS, the future looks promising for this token. CoinMarketCap reports 

, and on social media people are calling it a 

Looking to trade GoPlus tokens? Bybit now offers the GPS/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 for you to earn a share of a 19,000,000 GPS prize pool.

GoPlus appeals to the needs of modern crypto users. It provides security in a convenient manner, which has helped its token reach a respectable price. Investors who like working with new startups and tech-based companies may enjoy getting GPS tokens, especially during the current hype for the new token drop. Since the token has significant utility within the GoPlus ecosystem, its ability to maintain value over the long term is also promising.

However, GoPlus is still quite new, and it’s impossible to guarantee its success. The project relies on a small team, and anything that goes wrong could lead to a potentially major drop in the GPS token’s value. If GoPlus’s team fails to continue developing its product, enthusiasm and interest in the token could wane. Therefore, GPS investors need to pay close attention to market conditions and keep their portfolios diversified if they want to work with this token. 

GoPlus provides a valuable service for people looking to enhance web3 products. By implementing security features from the ground up, GoPlus addresses a lot of the common challenges that crypto users face. As long as it can continue to build on its current success, GoPlus has the potential to become an essential part of many other crypto systems.

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GoPlus (GPS): Your Gateway to Safer Crypto Transactions

Trading

The Donchian channel might not be a popular indicator. But, if it's used correctly, the results are quite impressive. Learn more here.

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We use technical analysis indicators to understand the market’s current situation by smoothing out volatility noise and giving them clues about potential future moves. While some indicators focus on the trends and volatility, others usually revolve around a trend’s momentum. However, there is a simple and multifunctional indicator that touches upon all of the mentioned aspects— the 

Yes, this technical analysis indicator is more commonly used in the traditional market, but it’s equally applicable in crypto markets, including derivatives futures trading. In fact, the founder (Richard Donchian) itself is a futures trader, which proves it works exceptionally well for hedging or trade speculation.

Donchian Channel is arguably similar to Bollinger Bands, particularly with its three separate lines. But it mainly focuses on identifying the high and low extremes that may lead to reversals, breakouts, breakdowns, and trends.

All in all, Donchian Channel is a volatility indicator that resembles a fluctuating channel when plotted on the price action. It mainly helps traders to visualize the resistance and support levels based on the recent highs and lows. Hence, enabling traders to understand the volatility of a price better.

The best part? It is one of the simplest trading indicators suitable for novice to advanced traders, and its versatility makes it applicable to all markets, including cryptocurrency.

Of course, you’ve heard of Relative Strength Index (RSI) or Bollinger Bands (BB), but did you know Donchian Channel has already developed about six decades ago by a famous commodity and 

. And the reason it was created is mainly to help traders determine asset’s price volatility and to spot breakouts critically.

However, little did you know this indicator does more than that. Best of all, it also determines the price trend and points to its momentum. And the channels are best to indicate the strength of the current market— 

Even though Donchian Channel is a lesser-known indicator, it does not mean that beginners should ignore it considering how multifunctional it is.

Just like BB, Donchian Channel is also made up of three lines, where the upper and lower bands represent the highest high and the lowest low of the previous period, respectively. While the centerline (median line) shows the average of the current high and low for that given period. The centerline is calculated by subtracting the 

 of a candlestick pattern on a price chart and dividing the result by two for the average. A good note here is the wider the two extreme channels, the more volatile the market is.

But what really differentiates Donchian Channel from Bollinger Bands? Here’s an overview.

First of all, for the untrained eye, Donchian Channel and 

 look almost identical. But beyond the similarities, Donchian Channel is different because it doesn’t require any users’ input for volatility. Another major difference lies in the calculation of these two indicators. While the Donchian Channel indicator displays the highest high and lowest low over N periods, Bollinger Bands display a simpler moving average (SMA) as the middle line and two standard deviations for each of the upper and lower lines. 

In a calmer market, Bollinger Bands are narrower than Donchian lines. However, during extreme volatility, the bands can go beyond the Donchian Channel’s lines. You can check the two indicators overlapping each other – the Donchian Channel indicator has a blue background, while the area of Bollinger Bands is colored with red:

Well, we don’t deny that it’s indeed messy at first when trying to understand Bollinger bands and Donchian Channel’s differences. But you can still notice that the two indicators act a bit differently. Specifically, the bands tend to react more promptly and follow the price, while Donchian Channel is slower, as it remains with the recent high or low until the period is updated. Note that the period for both indicators, in this case, is identical – it’s 20, which comes by default.

Another factor we’re often confused about is the difference between Donchian Channel and Price Channel. Again, most traders love to draw price channels, which are made up of two lines linking the recent highs and lows. However, the Donchian Channel is a bit different because it inclines horizontality while the price channel lines used by traders are always following the direction of the trend in a more visible way.

For example, in the image below, the two green lines represent a bullish channel’s 

 levels. If you check the Donchian Channel, it behaves as if it is lagging.

Both types of channel interpretations can provide accurate buy and sell signals, especially when used combined with other indicators, such as volume or some of the oscillators.

But, if you still doubt if Donchian Channel works for crypto trading, here’s what you must know. Not only this indicator works perfectly in analyzing the extremely crypto volatile market, but it also spots the breakout points for traders to open long or short positions more accurately. 

How to Use the Donchian Channel Indicator in Crypto Market?

Donchian Channel can be used in many ways, as the indicator has multiple attributes. First of all, crypto traders can analyze the market and every aspect of the ongoing friction between bulls and bears. Next, traders would be interested in employing the indicator in the trading process. Precisely, to spot the entry and exit points of long or short positions.

Here are the primary contexts and strategy ideas where Donchian Channel may be used successfully:

Donchian Channel is regarded as a volatility indicator for its capability to display price volatility accurately. By determining the market’s volatility level, you can easily decide whether to open a position or otherwise. Besides, it helps to prepare you to react accordingly to extreme changes. For example, if the price is in an up-trend (bulls) during low volatility, the chances are that the ascending move will continue for a while.

, this is an excellent opportunity to go for a long position. When the volatility increases, the market may become more unpredictable, but this is another great chance to open positions, though the approach should be different.  

One of the most popular ways to use the Donchian Channel indicator is to apply it with breakout trading. However, the two main types are breakdown as trading breakouts of the upper or lower channel lines or trading breaks of the center channel line in both directions. In a nutshell, cryptocurrency traders use it to search for signals to open long or short positions. 

The signals can be observed every time the channel’s upper line goes higher than the previous high, in which case a long position can be considered, or when the lower line goes lower than the previous low, in which case trades go short. In other words, the positions are opened when the price is breaking above or below the extremes of the channel. That suggests the trend will continue in that particular direction for a while. It’s because the upper and lower bands act as resistance and support levels, respectively.

Besides the channel’s extremes, the centerline can also provide decent signals. Suppose a cryptocurrency is trading close to the midline without noticeable deviations toward the upper or lower band. In that case, we may assume that the price is currently experiencing low volatility, and there is no clear trend at the moment. In this case, the channel would narrow.

However, if the market is trending towards the upper band, it makes sense to think about a long position and benefit from the ascending move. If the momentum is inclining towards the lower band, traders can go short.

Of course, the Donchian Channel strategy can be used for any trading asset, including cryptocurrencies. This strategy has some well-defined trading rules, which should delight beginners. For the sake of simplicity, we’ll explain the strategy with the bullish case scenario. Though, it is applicable in bear markets as well. 

According to this strategy, when the cryptocurrency price oscillates within the channel, the market will begin to crawl along the upper line. That can end up with the price breaking above the channel. Now, here are the rules that you should consider for opening and managing a position:

Insert the Donchian Channel indicator into the chart

You should start by placing the indicator on the chart, which is preferably a candlestick one. Most trading platforms and price chart services provide this indicator. The default parameters with 20-periods are ideal for us, so we don’t make any changes to its settings.

 and intraday trading, so you should consider trading on 15-minutes, 30-minutes, and one-hour timeframes. In the first case, the indicator will show the 

of the last 5 hour candles (15 minutes * 20), and so on.

Wait for the price to crawl along the upper line

The next step would be to wait until the price clearly moves along the channel’s upper line for a while. During this period, the price should never go below the centerline (median line). In other words, the price should adhere to the Donchian Channel’s upper side. That demonstrates that the bullish momentum is robust, as demand for the cryptocurrency is increasing. Here are several instances when it happens: 

While you may think that we should go long while the price is crawling along the upper line, our strategy has different rules. Instead, we should wait for a pullback during which the price action moves to the middle. We should open a long position when the price breaks below the centerline or when it touches the lower band.

In fact, you can open a long position when the price pulls back to the middle line and then open a second buy order when the price retreats further to the lower band. If it bounces back right after breaking below the centerline, there is no need for a second buy order. In this way, we will apply an effective risk management technique.

Another important risk management step is to place the stop-loss order, which should be set below the lower band of the Donchian Channel indicator. The 

 will prevent any further loss in the case the price goes against you.

Suppose the bullish trend continues until the end of the day, you should exit the market at the end of the day. As you don’t want to be exposed to overnight risks. Still, the price might correct before the end of the day. And in this case, you will have to exit the market manually or better use a take-profit order, which will help you save time and don’t bother monitoring the trade every minute. For this strategy, you can use a trailing take profit that will move along with the price.

That’s it! You can test the strategy on a demo account before implementing it with real funds. The great thing about it is that it uses several risk management techniques to minimize potential losses as much as possible. As mentioned, you can use the same rules during bearish markets, in which case you will open short positions.

Mistakes to Avoid When Trading with Donchian Channels

One of the biggest mistakes of day traders who use the Donchian Channel indicator is trying to determine the overbought and oversold levels with it, which is wrong. These traders believe that if the price is moving close to the upper band, it means that the market is 

 and should definitely retreat soon. Some traders can even open short positions when the price touches the upper band. However, the uptrend may continue for much longer, leaving the mistaken trader with insufficient funds to maintain the position.

Instead, one can use the Relative Strength Index or the Stochastic oscillator to get better signals about the market’s potential overbought or oversold levels. Otherwise, the trader is likely to blame the Donchian Channel indicator for providing inaccurate or false signals, which is not true.

In conclusion, the Donchian Channel indicator is very similar to Bollinger Bands. In terms of appearance and can be used in multiple ways, which is excellent for both beginners and advanced traders.

Most cryptocurrencies are highly volatile and require adequate indicators to provide a glimpse of the market’s actual state.

Also, you can pay close attention to the strategy that we shared as an example. It has a significant risk to reward ratio and has been tested multiple times on various assets. Still, it would help if you started practicing it on a demo account or checking the historical price. Good luck!

*This article is intended for and only to be used for reference purposes only. No such information provided through Bybit constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific person. These forecasts are based on industry trends, circumstances involving clients, and other factors, and they involve risks, variables, and uncertainties. There is no guarantee presented or implied as to the accuracy of specific forecasts, projections, or predictive statements contained herein.

Users of this article agree that Bybit does not take responsibility for any of your investment decisions

Please seek professional advice before trading.

Explained: What Is Donchian Channel & How To Trade With It?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards