For some traders asked me to publish on its website the Trade Turtles system (or as it is also called - "The system of the Turtle"), and although this strategy is applicable for all markets, and is a very sensational in the last 30 years, but I still will not it publish, and only briefly touch on it, and we consider today a strategy Linda Raschke Turtle Soup and Turtle Soup plus One.
Turtles Trading System - a medium-term and long-term trading system that was originally invented for the futures markets (including for contracts for the Swiss franc, the German mark, the British pound, the French franc, the Japanese yen and the Canadian dollar) and based on the breakdown of the 20-day and 55-day extremes (makismumov and minima) - so it certainly can be completely applied in the forex market, but there is one "but" in the TC - rather complex formula for calculating the positions of the volume as a 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, which can be and keep on your computer): Turtles Trading System
Although if you want you can upgrade and this trading system without the value N (not risk more than 1-2% of the deposit, the stop-loss set for the next local minima and maxima, well, just out of the market in the breakdown of 10-day Extrema) - but it will be a completely different strategy ...
This is interesting to learn about the history of this trading system, watch a video on the company PBK (the video quality is not "better", but for reference, I think, is quite sufficient):
All I wanted to propose to draw from this TC is that the Turtle System is a complete trading system, ie, its basic rules cover absolutely all aspects of trading in financial markets and do not leave any room for intuition or some guesswork in 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 to get out of a losing position
Exits - When to get out of 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!
And now let's move on to today's strategies:
1) Strategy L. Raschke Turtle Soup
After the rise of Turtle Trading System (which we discussed above), it was observed that this TS big enough inherent subsidence of the deposit and a low ratio of payoff from the large number of false breakouts in the financial markets. That is why the apparent strategy of "Turtle Soup."
TURTLE SOUP essence of the strategy is to find those cases where a breakthrough on the wrong market, and accordingly price makes rollback or reversal occurs in the financial market (in our case we will consider the forex market).
And although some of the reversals are only short-term and will help close the deal with minimal profit or even at bezubytka, well, sometimes with minimal stop loss, but sometimes, these reversals will be provided mid-term or long-term trend reversals in the market and accordingly will allow us to get a good profit.
And so we will deal with the following conditions:
1. Open the daily schedule for the chosen currency pair (though as for me, this strategy may well be applied to any time-frames (I recommend no less than the M15), but the parameters of a trailing stop and indentation will certainly be a little different for these intervals). If you believe that trading on the daily chart does not suit you, because you have plenty of small trading account - open cent account forex.
2. Today's candle will always be the 20th of the last candle 20-day range, so 20 days reckoned from her back and find the 20-day minimum and 20 days maximum. We note them on the chart horizontal lines (if desired for clarity).
3. Previous day minimum or maximum must be located a minimum distance of 4 days from today.
4. As soon as the current candle rewritten minimum or maximum (previous 20 days) - place a pending order at the price of 5-10 points higher than the minimum price of the previous 20-day low on purchase (ie a buy stop order). And accordingly to 5-10 points lower than the maximum closing price of 20-day maximum place an order sell stop.
Moreover, the pending order is valid only for the current daily candle !!! If it did not work before closing the current daily candle - we delete it.
5. If the order is triggered, it is necessary to put a stop loss a few pips above the maximum price of the candles for 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 level 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, GBPUSD pairs, the GBPJPY) the trailing stop above (and, accordingly, the level of the translation into the black, too) - eg 50-70 points.
If the currency pair is less volatile (USDJPY and EURUSD (although in recent years it can not be called less volatile)) - trailing stop 30-50 points.
7. There are also rules for re-entry into the market in the trading system:
If during the first or second day after the opening of the transaction, triggered stop-loss - is re-set a pending order at the same level as the first order (see item 4) - but this rule is valid only for 1 st and 2 nd trading day !
