Turtle Strategy Trading


Turtle Strategy Trading History

Turtle strategy trading is a unique concept which appeared as a result of a long bet between two traders- whether it is possible to teach a usual person profitable trading on Forex. One of the traders who had great math skills and “sixth sense” for profit had an idea that exactly these abilities would help him to earn money on Forex. Whereas the second trader thought that absolutely every person is capable of trading on the market by following certain rules and strategies developed by an experienced teacher. The result of this experiment is the following – it is possible to teach ordinary people how to trade on the market as well as follow strict rules of the trading system. And this system is known by the name “Turtle Strategy Trading”.

Technical Side of the Strategy

From the technical point of view, Turtle trading strategy is based on a breakthrough of a price channel. Two systems should be used in order to make a trade. According to the first variant, entry to the market is made with the help of 20 daily breaking range and the second variant supposes 55 daily breaking range. The moment that is considered to be breaking is when the price goes beyond channel’s maximum or minimum.

Position measurement is units which are calculated depending on the market volatility, that’s why it is always different for every market. The unit calculation formula is very simple and looks in the following way: unit is equal to 1% from the size of a trading account/market volatility. Thus every trade can consist of a few positions for different markets where they were set several units. Every next unit is simply added after coping with certain conditions.

One of the main points to pay attention to is the right way of leaving the market in case of loss-making positions. In line with the investor’s Turtle strategy trading opinion, an inability to close a loss-making trade at the right time leads to bankruptcy. Generally speaking, brokers are not set with “Stop Orders” but instead the price level is calculated where closing a trade can be done manually. “Stop Loss” is counted with a condition that the risk of every trade shouldn’t be higher than 2% from the deposit size. In order to close a trade, orders are not set, a trader should just watch the price waiting for conditions execution and accomplishment.

Resume

The difficulty about Turtle strategy trading is in the fact that it is very significant to follow it even if you have no desire to enter or leave the market without waiting for signals. Nevertheless, it really does help to be involved in strong trends and receive such profits that some traders get when using other strategies for months.

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