FOREX Turtle Soup
Strategy Turtle Soup, Turtle Soup plus One
Trading System Turtles - medium and long term trading system that was originally invented for the futures markets (including contracts for the Swiss franc, German mark, British pound, French franc, Japanese yen and Canadian dollar) and is based on the breakdown of the 20-day and 55-day extrema (minima and makismumov) - so it certainly can be fully applied in the forex market, but in the TC there is a "NO" - rather complex formula for calculating the amount of positions as the value N .
That's why I will not publish this strategy on its website, and to whom it will be interesting - read it here (opens in a new window in pdf format, and you can save to your computer): Trading System Turtles
Although if you want you can upgrade and this trading system without the quantity N (do not risk more than 1-2% of the deposit, the stop-loss set at the nearest local minima and maxima, well, just out of the market the breakdown of 10-day extremes) - but it will be a completely different strategy ...
Eastholme Turtle is Complete Trading System , ie its basic rules cover absolutely every aspect of trading in financial markets and leave no room for intuition or some guesswork when trading!
Here are all the "components of a complete trading system" (which must be present, in principle, in any forex strategy and any strategy for financial markets):
Markets - What to buy or sell
Position Sizing - How much to buy or sell
Entries - When to buy or sell
Stops - When out of a losing position
Exits - When to go from a winning position
Tactics - How to buy or sell
That is why this trading system and allowed the Turtles to earn in the financial markets for so long!
Now let's move on to today's strategies:
1) Strategy L. Raschke Turtle Soup
After a Trading System Turtle (which we discussed above), it was noticed that this vehicle is characterized by fairly large subsidence of the deposit and the low ratio of gains to the loss of the large number of false breakouts in the financial markets. That is why the strategy emerged "Turtle Soup» .
The essence of strategy TURTLE SOUP is to find cases where a breakthrough in the market wrong, and therefore the price does not roll back or reverse happens in the financial market (in our case we will consider the market Forex).
And although some of the reversals will only be short term and help close the deal with minimal or no profit on bezubytku, well, sometimes with a minimum stop-loss, but sometimes, these reversals will be provided by medium-or long-term trend reversal market and thus allow us to get a good profit.
And so we'll make a deal with the following conditions:
1. Open daily chart for the chosen currency pairs (although for me, then this strategy may well be applied to any time-frames (I recommend no less than M15), but for these intervals, the parameters of a trailing stop and the indentation will certainly differ slightly). If you think that trade on daily charts does not suit you, because you have a fairly small trading account - forex account open a cent.
2. Today a candle is always the 20th candle, the last 20-day range, so reckon on it 20 days ago and find the 20-day minimum and 20-day maximum. Mark them on the graph by horizontal lines (if needed for clarity).
3. Previous day minimum or maximum should be located a minimum distance of 4 days from today.
4. As soon as the current candle rewritten a minimum or maximum (previous 20 days) - place a pending order at the price of 5-10 points higher than the minimum price the previous 20-day minimum purchase (ie, a buy stop order). And accordingly 5-10 points below the closing price of the maximum 20-day high place sell stop order.
And this pending order is only valid for the current daily candle! If it did not work until the close of today's day candles - delete it.
5. If the order is triggered, you must put a stop loss a few points above the maximum price of the candles for the transactions for the purchase and, accordingly, a few points below the minimum price for the transactions for the sale.
6. As soon as the position becomes profitable - translate it into a break even point and set it on a trailing stop (Universal trailing stop or standard MT4), which for each currency pair should have its own - the more volatility in the market (for example, pairs of GBPUSD, GBPJPY) by a trailing stop above (and thus the level of translation to breakeven, too) - such as 50-70 points.
If the currency pair is less volatile (USDJPY and EURUSD (though lately it and not be called a less volatile)) - trailing stop-loss points 30-50.
7. Also in this trading system there are rules for re-entry into the market:
If during the first or second day after the opening deal, worked a stop-loss - again set aside the order on the same level as the first order (see paragraph 4) - but this rule is only valid for 1st and 2nd day of trade !
2) Strategy L. Raschke Turtle Soup plus One
1. Emerging on the market 20 days minimum or maximum, but it must be made not less than 3 candles closed earlier. This minimum is closed for level or slightly below the previous 20-day minimum . Accordingly, the maximum rose to the level or slightly higher than the previous 20-day high.
2. Pending order buy stop set on the day following the closing day candles from the previous 20 dnevngo minimum - for the transactions for the purchase or at the 20-day maximum for transactions on sale.
Similarly, if the course of the day the transaction is not open - delete the order!
3. Stop-loss set immediately after the opening of the order a few pips below the last level (1st or 2nd day) for the transactions for the purchase and, accordingly, a few points above the last peak (1st or 2-day) for the transactions for the sale.
4. Similarly, we use a trailing stop to exit a position - its magnitude is roughly the same as in the " Turtle Soup " and ustanavivaetsya it at will! Since without setting a trailing stop, you can catch and ravorot prices in the market - it's up to you (as an example veshe)!
Just want to warn you that on the daily charts these models do not appear frequently, but if nalizirovat several currency pairs, the number of transactions will garazdo more!
UPDATE: just want to add that these models are: Turtle Soup, Turtle Soup plus One is almost always accompanied by diverentsiyami indicators MACD, Stochastic, CCI , so watching the divergence of these indicators, you can easily find and the above-described model.