Simplified original turtle trading system
The story of the commodities trading turtle has become one of the most famous in trading history. Their success sparked the interest of many new traders and helped Richard Dennis become one of the most famous commodities traders of all time.
"The Turtle Trading System is a complete trading system. Its rules cover all aspects of trading, leaving no decisions left to the traders' subjective thoughts. It has all the components of a complete trading system."
However, after many attempts to understand it, I found that the rules were a bit complicated for me to understand and execute trades. Because, this is my own simplified version of the original Turtle trading system because I wanted to keep my trades simple and easy to execute.
Timeframe: Daily charts only Markets: All pairs Position size: 2% of capital
Entry: When the price exceeds the high or low of the previous 20 days by 1 pip. Stop loss: When the price exceeds 2 x ATR (average true range, set for 20 days) by 1 pip or when the price exceeds the high or low of the previous 10 days by 1 pip; whichever comes first.
Exists: When the price exceeds the highest point or lowest point of the previous 10 days by 1 point.
10 days is the red line
20 days is the yellow line
Example using GBPUSD
On January 13, 2011, when price moved above the 20-day high (yellow line), go long at 1.5771 (up arrow)
On March 11, 2011, when the price moved above the 10-day low (red line), it existed at 1.6030 (downward arrow)
If price reverses, stop loss at 1.5477 (red horizontal line).
Calculate stos loss,
On January 3, 2011, the ATR was 0.0147, so 2 x ATR was 0.0294.
1.5771 - 0.0294 = 1.5477 (stop loss)
However, don’t place a stop loss order! The reason why the Turtle system does not display stops is to prevent brokers from hunting stops.
"I always say, you can publish my trading rules in the newspaper and no one will follow them. The key is consistency and discipline. What they can't do is give them the confidence to follow those rules, even if things go bad." Richard Dennis, famous businessman and father of the Turtles.
My problem is that I am not yet confident in this system and need to backtest the EA to find out if this system is profitable. We know that trend trading may bring us some losses first before we can make a profitable trade.
My purpose in posting this system here is to share it with everyone here who knows how to make it into an EA file so that we can backtest the results and see if this simplified version of the original turtle rules is profitable.
Would love to build a diagram like this for a simplified primitive turtle system.
DUNN is comprehensive and uses a trend trading system.
Thank you all, the ultimate trend trader!
______________
My challenge is to be consistently profitable - http://www.101forexcurrencytrading.com/
"The Turtle Trading System is a complete trading system. Its rules cover all aspects of trading, leaving no decisions left to the traders' subjective thoughts. It has all the components of a complete trading system."
However, after many attempts to understand it, I found that the rules were a bit complicated for me to understand and execute trades. Because, this is my own simplified version of the original Turtle trading system because I wanted to keep my trades simple and easy to execute.
Timeframe: Daily charts only Markets: All pairs Position size: 2% of capital
Entry: When the price exceeds the high or low of the previous 20 days by 1 pip. Stop loss: When the price exceeds 2 x ATR (average true range, set for 20 days) by 1 pip or when the price exceeds the high or low of the previous 10 days by 1 pip; whichever comes first.
Exists: When the price exceeds the highest point or lowest point of the previous 10 days by 1 point.
10 days is the red line
20 days is the yellow line
Example using GBPUSD
On January 13, 2011, when price moved above the 20-day high (yellow line), go long at 1.5771 (up arrow)
On March 11, 2011, when the price moved above the 10-day low (red line), it existed at 1.6030 (downward arrow)
If price reverses, stop loss at 1.5477 (red horizontal line).
Calculate stos loss,
On January 3, 2011, the ATR was 0.0147, so 2 x ATR was 0.0294.
1.5771 - 0.0294 = 1.5477 (stop loss)
However, don’t place a stop loss order! The reason why the Turtle system does not display stops is to prevent brokers from hunting stops.
"I always say, you can publish my trading rules in the newspaper and no one will follow them. The key is consistency and discipline. What they can't do is give them the confidence to follow those rules, even if things go bad." Richard Dennis, famous businessman and father of the Turtles.
My problem is that I am not yet confident in this system and need to backtest the EA to find out if this system is profitable. We know that trend trading may bring us some losses first before we can make a profitable trade.
My purpose in posting this system here is to share it with everyone here who knows how to make it into an EA file so that we can backtest the results and see if this simplified version of the original turtle rules is profitable.
Would love to build a diagram like this for a simplified primitive turtle system.
DUNN is comprehensive and uses a trend trading system.
Thank you all, the ultimate trend trader!
______________
My challenge is to be consistently profitable - http://www.101forexcurrencytrading.com/
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