#7 Turtle Trading System

Frank, you just need to put a buy stop or sell stop order above or below the hisghest or lowest price within the last 20 days. And you can count the days with your fingers.

Henry
priceistrending.wordpress.com

Hi there, my name is Frank.
just, maybe stupid, but my :) question. I studied charts and mainly, indicators... But I cant understand very well how to count days.. I do not know, I graduated from technical college but simply shame on me...
so. I open the chart (does not matter what one) today... OK?
What day I should to start counting from, to get 20th breakout day?? post a picture somebody if u r fancy to do that. But I am confused..
(Is it like that I take today as a day 1 and start to count 20 days? And if it will come 20th day I will move this count further? I mean that, say today as day 1 become day zero and tomorrow will be day 1??
Please help...

Dear fellow traders , After a lot of testing and live trading, i have come to the conclusion that this strategy works well, especially in stocks. I needed MT5 indicators of the turtle strategy, if someone is generous enough to share.

Thanx

thanks

i still confuse about the stop trail and exit rules.Assume that i take long position EUR/USD at 1,3082 because the price already break out 20 days high and then i place stop limit at 1,3082-2N (N=0,0121) = 1,2840 and let's say the 10 day low = 1,3025. My Q is at what price i must out from the market?at 1,2840 or 1,3025? Thx

If the price retraces after entry, hits the stops then resumes does one re-enter? And to complicate my question a bit more, if one does re-enter and the 20 (or 50) has developed a new level, are all the new trades based on this new level, or the original value that got stopped out? Same question for figuring "N"... does one use the original atr or the new atr?

Turtle is Turtle, its not a black-box. a black box is what is hidden or a user can use signals but not able to find the strategy. Turtle is famous. but its not being sold because its free. those blackbox signals are neural networks (genetic algorithms)

Turtle Trading system has now been changed into a Black-Box trading system ... The flaws in Turtles had statistically improved during 20 years of testing on 48 markets with no optimization or curve fitting ... this today is known as BRC Black-Box Trading system ...

Great site thank you!

Hi User who wrote in on August 21, 2010 - 08:13,

Can I seek your advice on the Turtle's system? I don't quite understand how i should read the different lines in this indicator in large due to the fact that they are constantly moving and are stepped. My qn is, take the 50-line for instance, how do I know where does the 50 days start?

Thanks much in advance!
brightdays

Comment above: "I have tried the turtle trading method in forex and the results did NOT amaze me: the method worked ONLY in daily charts. I tested the method for EURUSD using 2 year old historical data. Results: around +40%. In stock markets this method is not very good, for instance the basic double moving average system can result in bigger profits that the turtle method. Sorry, but I just get the big fuzz around this method. Everyone always says that the biggest problem in trading is to constantly be able to follow one's rules. But I disagree! The biggest problem is finding a working system."

WOW. You tested this system on one currency pair for two years of Daily data and decided it didn't work. Then you state that a double moving average system would work better on the stock market (with no proof). You're a trading GENIUS.

Now for the facts... this system works... and it works on ANY market. No, it won't win on every market or vehicle traded at the same time... it needs to be spread across several markets (as described in THE RULES). Diversification is a key component. How do I know? Because I've been AVERAGING 100% increases in my account using a similar trading system based on these rules for the past TEN YEARS... and guess what... I TRADE FOREX.

Here's a clue... FOLLOW ALL OF THE RULES. Not just the ones you feel like following, not just the ones you understand... ALL OF THE RULES. It's not an easy system to trade because you can go into large drawdowns... but IT WORKS. However most people don't have the discipline or intelligence to follow it properly.

Please don't say something doesn't work just because it won't work the way that YOU want it to work.

This should help with volatility calculation:
http://www.mataf.net/en/tools/02-01-volatility

while "dollar per point" means that each price tick [the single smallest move in price] on the Forex chart that you see has its value for every trader. This value depends on a position size which a trader has opened.

Thus, for example, a trader who opened 1 lot contract will earn $10 per each price tick [in Forex it is called the PIP].
A trader, who opened 0.1 lot contact will earn $1 per every price tick/every pip.

hi i would like to know how to calculate the dollar volatility? what do dollar per point means?

Hi Nix,

When we set up the turtlechannelli.mq4 indicator, we get the next chart:

All those lines represent different risk management approaches - from a more conservative to a more aggressive, namely:

The white line represents the price High and Low range found over the 50 days period.
The yellow line - 20 days, the red line - 10 days.

(The indicator makes it look like a channel, but you should understand, that at any point of time it is a High-to-Low price range, which we can simply highlight by drawing two parallel horizontal lines thought the High and Low prices of the range).
Therefore, when price exceeds the High of the range, Turtle traders enter Long. When price drops below the Low of the range, Turtle traders enter Short.
Which of the three ranges should one use: red, yellow or white?

The white range offers the most conservative, less risky approach to selecting trades. It takes a wide range of 50 days, allowing more room for a trend to mature and confirm itself before a Turtle trader changes his position from Buying to Selling and back.

10 days range, on the opposite, is the most aggressive type of trading, it reacts faster to market changes and sends more Buy and Sell signals over a short time.

It is now up to you to choose the comfortable risk level.

While in a trade, the opposite side of the Turtle channel is used as a trailing stop and at the same time a level, at which a trading position is simultaneously reversed to an opposite one.

When we use another indicator - TurtleTrader.ex4, our chart looks the following way:

Here we have 3 types of lines: thin, thick, and extra thick.

The thin lines represent 10 days range,
the thick lines - 20 days,
the extra think lines - 55 days.

Best regards,
Edward

hi Edward,
i ve download the turtlechanneli.mq4 and attached, but cant make sense when the chart shows, can you pls enlighten me, cheers n regards

nix