1) ?...... 20 trading days.....in 4 weeks.... which is similar to one month......which may somehow coincide/interact with end-of-the-month window dressing. 2) 55 was the number for Doug Buffone of the Chicago Bears. Dick Butkus's number 51 was too "weird" to use so 55 was agreed on instead. 3) I had heard "chatter" that 40 days was another "significant" interval that the Turles paid attention to. ?....... !....... OMMFG! 40 is the second harmonic of 20! :eek: :eek:
============================ Good points; 50 days can be a good measure of trends, also. [50 day moving average]55 days has less comissions than 50 days, on average. Wisdom is profitable to direct 40 days?? Well markets do change.......................................
There are 22 trading days on average in a month. The orginal system by Donchian was 4 weeks, four trading weeks is 20 days. The 55 days , is a safety breakout not to miss a long term trend because the 20 day breakout is turned off if the last trade was a big winner.
Lol, they had to use something!!! Nothing wrong with optimization at all, if done intelligently. What number should they have used, one that made half the amount that 55 days did?????!!!
This may or may not be the case. When you are looking to optimize a parameter, you have to do it intelligently. It may be that 56 was the most profitable parameter but 55 was more robust.