For a few traders asked me to publish on its website Trading System Turtles (or as she calls her still - "Turtle System"), and although this strategy is applicable to all markets and is a very notorious in the past 30 years, but I'm still not going to her publish, but only briefly touch on it, and today we look at Linda Raschke strategy Turtle Soup and Turtle Soup plus One.
Trading System Turtles - medium and long term trading system that was originally invented in 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 this vehicle is one "but" - rather complex formula for calculating the amount of positions as the value N.
Trading System Turtles - medium and long term trading system that was originally invented in 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 this vehicle is one "but" - 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): Turtles Trading System
Although if you want you can upgrade and this trading system without quantity N (not to risk more than 1-2% of the deposit, the stop-loss bet for the next local minima and maxima, well, just out of the market in the breakdown of 10-day extremes) - but it will be a completely different strategy ...
All I wanted to offer draw from this vehicle, is that the Turtle System is a complete trade system, ie its basic rules cover absolutely all aspects 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 the 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 make the financial markets for so long!
And now let's move on to today's strategies:
1) Strategy L. Raschke Turtle Soup
After the appearance of the Trading System Turtle (which we discussed above), it was noted that this vehicle is characterized by fairly large subsidence of the deposit and the low ratio of winnings to the loss of the large number of false breakouts in the financial markets. For this reason and revealed the strategy of "Turtle Soup".
The strategy TURTLE SOUP is to find those cases where a false breakout on the market, and therefore the price does not roll back or reversal occurs in the financial market (in our case we will consider the forex market).
And although some of the turns are short and will only close the deal with minimal or no profit on bezubytku, well, sometimes with a minimum stop-loss, but sometimes, these spreads will be provided mid-term or long-term trend reversal in the market and thus enable us to obtain good a profit.
And so we'll make a deal when the following conditions:
1. Open daily chart of the chosen currency pair (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 indentation will of course vary slightly). If you think that trade on daily charts does not suit you, because you have enough small trading account - Forex Cent account open.
2. Today's candle is always the 20th of the last candle 20 day range, so she reckoned from 20 days ago and find the 20-day minimum and 20-day high. Mark them on a chart with horizontal lines (if desired, and 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 for the price by 5-10 points higher than the minimum price the previous 20-day minimum purchase (ie order buy stop). And accordingly 5-10 points lower than the maximum closing price of 20 day high place sell stop order.
Moreover, this pending order is valid only for today's daily candle! If it did not work until the close of today's daily candle - delete it.
5. If the order is triggered, you must put a stop loss a few pips above the high 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 - we translate it into a break even point and set it on a trailing stop (trailing stop universal or standard MT4), which for each currency pair should have his own - the more volatility in the market (for example, pairs GBPUSD, GBPJPY) trailing stop order above (and the level of translation to breakeven, too) - like 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 30-50 points.
7. Also in this trading system, there are rules to re-enter the market:
If within the first or second day after the opening of the transaction, triggered stop-loss - second set pending order at the same level as the first order (see item 4) - but this rule only applies to 1st and 2nd day of trading !
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 closes at or slightly below the previous 20-day minimum. Accordingly, the maximum locked at or slightly above the previous 20-day high.
2. A 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 the transactions for the sale.
Similarly, if the course of the day the transaction is not open - delete the order!
3. Stop-loss set at the commencement of the order a few pips below the previous level (1st or 2nd day) for the transactions for the purchase and, accordingly, a few points above the last peak (1st or 2nd day) for transactions for sale.
4. Similarly, we use a trailing stop to exit the position - the value of its roughly the same as in the "Turtle Soup" and ustanavivaetsya it at will! Since the without setting a trailing stop, you can catch and ravorot prices on 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 often, but if nalizirovat several currency pairs, the number of transactions will garazdo more!
And now let's move on to today's strategies:
1) Strategy L. Raschke Turtle Soup
After the appearance of the Trading System Turtle (which we discussed above), it was noted that this vehicle is characterized by fairly large subsidence of the deposit and the low ratio of winnings to the loss of the large number of false breakouts in the financial markets. For this reason and revealed the strategy of "Turtle Soup".
The strategy TURTLE SOUP is to find those cases where a false breakout on the market, and therefore the price does not roll back or reversal occurs in the financial market (in our case we will consider the forex market).
And although some of the turns are short and will only close the deal with minimal or no profit on bezubytku, well, sometimes with a minimum stop-loss, but sometimes, these spreads will be provided mid-term or long-term trend reversal in the market and thus enable us to obtain good a profit.
And so we'll make a deal when the following conditions:
1. Open daily chart of the chosen currency pair (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 indentation will of course vary slightly). If you think that trade on daily charts does not suit you, because you have enough small trading account - Forex Cent account open.
2. Today's candle is always the 20th of the last candle 20 day range, so she reckoned from 20 days ago and find the 20-day minimum and 20-day high. Mark them on a chart with horizontal lines (if desired, and 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 for the price by 5-10 points higher than the minimum price the previous 20-day minimum purchase (ie order buy stop). And accordingly 5-10 points lower than the maximum closing price of 20 day high place sell stop order.
Moreover, this pending order is valid only for today's daily candle! If it did not work until the close of today's daily candle - delete it.
5. If the order is triggered, you must put a stop loss a few pips above the high 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 - we translate it into a break even point and set it on a trailing stop (trailing stop universal or standard MT4), which for each currency pair should have his own - the more volatility in the market (for example, pairs GBPUSD, GBPJPY) trailing stop order above (and the level of translation to breakeven, too) - like 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 30-50 points.
7. Also in this trading system, there are rules to re-enter the market:
If within the first or second day after the opening of the transaction, triggered stop-loss - second set pending order at the same level as the first order (see item 4) - but this rule only applies to 1st and 2nd day of trading !
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 closes at or slightly below the previous 20-day minimum. Accordingly, the maximum locked at or slightly above the previous 20-day high.
2. A 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 the transactions for the sale.
Similarly, if the course of the day the transaction is not open - delete the order!
3. Stop-loss set at the commencement of the order a few pips below the previous level (1st or 2nd day) for the transactions for the purchase and, accordingly, a few points above the last peak (1st or 2nd day) for transactions for sale.
4. Similarly, we use a trailing stop to exit the position - the value of its roughly the same as in the "Turtle Soup" and ustanavivaetsya it at will! Since the without setting a trailing stop, you can catch and ravorot prices on 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 often, but if nalizirovat several currency pairs, the number of transactions will garazdo more!
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