legendary strategy, which brought millions of dollars to traders around the world.The famous experiment showed that anyone can trade on the exchange, if in compliance with the rules of the system.Trading philosophy, realizing that, you'll discover new ways to profit on Forex.Classical system "turtles", in spite of its age, carries many lessons, allowing a glimpse into the very essence of price movements, and large trends.
Features "Turtle" trading system
Currency pairs: EURUSD, USDRUB, AUDUSD, USDCAD, NZDUSD, USDSGD, EURGBP, Gold, stocks, commodities, indices
trading Hours: around the clock
Recommended DC: Alpari, Roboforex
- Curtis Feis book "Way of the Turtle.From amateurs to legendary traders »:
- Download online
- book Michael Covel" Turtle Traders »
- Setting indicators in MT4
- Setting strategies
History of strategy
Many years ago two of the trader Richard Dennisand William Eckhardt argued: whether it is possible to educate the comm
Richard Dennis said that it is possible, and William Eckhardt believed that it is impossible.He thought that you need to have some sixth sense or intuition to work on the exchange.Put simply have talent.
result of their dispute was the experiment.Richard Dennis filed a declaration and got people off the street for that would teach his trading system.At the end of training, he singled out the best pupils of a certain amount of trade.And what do you think happened?Without his scrutiny, some of the students have earned millions, but someone from his group on the contrary lost them.The market was one and the same.Traded they at the same time.The rules for each of them were the same.
This experiment shows that trading success depends not so much on the system, and how much from the man himself.
No matter how much you know.If you do not know how to apply it in practice, you're not so clever as might think.
Today we will see, what was that system that Richard Dennis taught his disciples, and try to understand why some traders lost money and some earned.
- Azzx_donchian ( Channels Donchian)
built canals for highs and lows for the specified number of days.If
with a period of 20 days counted past 20 candles.There is the highest and the lowest price.Similarly, there is a period of 55 days.There is no big deal.You can easily build a canal themselves pencil on paper.Indicator is set at three times the schedule with the periods of 55 days, 20 days and 10 days.
- TheClassicTurtleTrader (Turtle)
You can find the breakdown on their own, but faster and easier to use auxiliary displays.
TheClassicTurtleTrader shows the breakdown of red and blue dots, shows the ins and outs of the arrows.
mounted on the schedule twice.One with a period of 20 and a stop - 10. Second period to period 55 and a stop - period 20.
For successful classical trade enough indicators "Donchian Channels» and « The Classic Turtle Trader ».
Let's add to the chart the indicator to see everything clearly:
We see that the indicator points are also signals when the channel over the last n-days continues to increase or decrease.
Fills the area 10, 20, 55 day break and arrow displays input and output ticks.
Draws a candle, which indicates medium-term trend.
In this example - it's not a very strong down trend.
default settings.If desired, you can change the display settings 55-day channel and color.
Standard display in the terminal.
Set with period 20.
Two kinds of trade, based on the breakdown of Donchian channel.Transactions are opened at once, as soon as the price breaks the channel.You can not wait for the close of the candle.
more short-term entrance:
- Price breaks 20-day Donchian channel.
- The deal on the previous signal, it does not matter whether or not we were, closed with a loss.
If the previous transaction was closed with a profit, missing input.If it turns out that the breakdown profitable, then later go to him in the penetration of 55-day channel.
In the picture you can see the daily chart of the EUR / USD.
green lines reflect Donchian Channel boundary with 20, ie 20 days.
When the price breaks the channel, we enter into a transaction.
-Price hit 55-day Donchian channel.
Interestingly, the filter of the previous transaction does not use, always enter.
For Forex there is a simplified form of calculation for turtles.It looks as follows:
ATR (20) * 2
interesting fact, but if the turtle does not place a stop order in the market, as traded fairly large positions.Thus, they did not want to show it to the broker.Instead of placing the order, they follow the price during the day and organized way out as soon as it reaches the break level.
It was important that the loss did not exceed certain values associated with the current volatility in the market.Stop-losses are virtual.
But you do not sell billions, so we need to be sure to place these stop-loss.
In order to work with a formula for calculating the stop-loss, should be added to the schedule of the ATR indicator:
The final transaction stop loss would amount to 280 points:
reason large numbers that itdaily charts.
This stop-loss is set solely for the purpose of insurance, as the outputs occur according to the rules, which are described below, and thus the stop loss is triggered rare.
It is installed in order to protect themselves from unpleasant situations with some sharp price movements during the day.
As you know, if there is an entry, it means to be a way out.
- For transactions open for penetration of 20-day channel, the output occurs at a penetration of the opposite 10-day channel.
- For transactions open for penetration of 55-day channel, the output occurs at a penetration of the opposite 20-day channel.
- In the first case, a turtle came out in the breakdown of a 10-day channel.In the graph it is marked by red borders:
Auxiliary indicator clearly shows the exit site.
When passing through a minimum 10-day channel we have here comes a point:
If it hover, it will display the name, time and postscript to withdraw from long positions.
- And in the case of the 55-day channel exit carried out after hitting a 20-day channel.
Let's open a deal to sell and another look at her.
The graph you can see the breakdown for the 55-day schedule:
The selected sample point was 20-day channel top.Here we have come out of the deal:
That's how come out of the data items.It is important to closely monitor the indicators and signals are in and out of positions.
are installed at a distance of every 0,5 ATR from the point of entry
enter the market we could somewhere on this level.ATR amounted to 140 points.Half of them - a 70:
After 70 points, we would have placed one more order to the input in the same direction.After 70 and after another 70 points one more.
the refill orders to stay here so every 70 pips:
If ATR was different, the topping would be carried out in equal installments from his half.
Now let's talk about the management of Manila.
- risk per trade is not more than 1%
- When using the refill orders risk for each transaction 0,25%
I would like to say at once that the turtles will never risk more than 1% of the deposit on the deal.If you want to use, and the refill order, you should use on each trade of about 0.25% risk of deposit.
As for stop-loss orders that the refill, they are calculated in the same way as described above.Upon reaching the refill each stop-loss orders the common position is transferred to the higher or lower level.Simply put, it is a little shifted.
I certainly see comments on the subject of low-risk per trade, but turtles are traded on a large number of markets and instruments.This was a precautionary measure to ensure that in the case of losses of individual items in general remain in the game.This is the main task of money management - allowing us to stay in the game with a large series of unsuccessful transactions.
Examples of transactions
Now let's look at some examples of entries in the market.
- On the penultimate entrance at the intersection of 20-day channel everything will be just
position is closed around a small profit of 15 points:
position opened after hitting 55-day channel, would be closed at the belaystop-loss:
Please note that the entrance to the shopping on the last maximum penetration at 20-day channel, we would have missed, because the previous sample 20-day channel brought a profit.
- Let's see, we would be able to enter into a transaction as an example of another breakdown.
Potentially it profitable:
look, whether profitable previous sample.In order that it considered unprofitable, the price has to go against our potential position for at least 2 ATR:
In our case it has not passed the distance, but as a result of the deal is closed with a loss.The reason was the intersection of the 10-day channel.
Therefore, we can take the signal in question.
- Let's now take a look at the signal, which would give us the opportunity to enter into a sample and get more profit:
previous signal was unprofitable.We see a clear reversal, so we would be able to safely enter the market at the close of the candle:
Stop-loss was exposed to as a safety.Currently, ATR was 47 points.Therefore, we would take about 100 points.
The deal could be continued to keep up to the intersection of the maximum 10-day channel:
indicator carefully shows a red dot, when cost to withdraw from the market.
would leave us with a profit of 630 points:
's right to the taking of such trends and calculated strategy.
- Now let's consider the inputs on the 55-day channel.
recall that in the case of the 55-day breakdown we take all transactions, no matter whether they were profitable or not in the past.And get out of the deal in the breakdown of a 20-day channel.
preferred to use two graphics, in order to make it easier to navigate in the strategy.
Last Login on our example, there was a bit later than 20 days:
Stop-loss is calculated similarly.
In this case, it was about 92 points.He would expose on our schedule:
We went to the system through a large amount of time.
Let's calculate the profit that we could get in the end:
profit in this transaction amounted to 2300 points with a stop-loss of 100 points.That is, the profit would have been more than 23 times the stop!
agree that this is a very good deal.This is all the power of long-term trends.
Of course, the system will be a lot of false signals, but by design.
In his book about the history of the turtles is mentioned that the most money they made on the trends of 3-4 times a year.Simply put, 4 transactions brought the main income.Given that they are traded on a variety of instruments.
1) Trade a margin .Find a strategy for bringing positive results in the long term, so that you have a long-term advantage.
2) Manage risk.Monitor risks for the continuation of trade, otherwise you will not have time to enjoy a string of successful transactions.
3) Be consistent .Follow your plan to enter into a transaction in order to achieve the purpose of the system - a profit.
4) do simple things.Simple systems are easier to withstand the test of time.
Table with trends since 2010
Turtle indicator author was an interesting table, which counted all the trends since 2010 after the breakdown of the 20-day.The culmination of the trend is considered to be a return to the opposite 10-day level.The calculations were performed on major currency pairs: EURUSD, GBPUSD, USDCHF, NZDUSD, USDJPY, USDCAD, AUDUSD, EURGBP, GOLD and SILVER.
Attention!It's just all the breakdowns 20-day channel with the end to return to the 10-day channel. it is not included on turtles system.Extras.condition for entry to the system 1 (to the previous entry was unprofitable), as well as the breakdown of the 55-day channel is not taken into account.
first table it trends down, second - up trends.
Legend to the table:
1) # - number of the order;
2) Symbol - currency pair;
3) Open Price - the price of the beginning of a trend, Break 20-day level;
4) Start Trend - the start time of the trend;
5) Close Price - closing price to rebound to the opposite 10-day level;
6) End Trend - closing time trend;
7) Day - the duration of the trend in these days;
8) Point - the number of points from the entry price to the closing price;
9) Type - Down / Up type trend - descending / Growing;
10) Total shows the total of points.
This information advise to use as an interesting material for your own research.Surely you have already appeared a couple of ideas.
turtles strategy clearly shows us that the long-term trends can not be ignored.And that they can make big money, spending a minimum of effort.I understand that intraday trading persistently beckons you waiting for instant results, but it is possible to combine the two approaches: one account to trade in dolgosrok and the other to carry out a short-term trades.
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branch indicator Turtle