What is Turtle Trading ?
We say in our earlier posts that Forex/Stock/Commodity market has many trading strategies. Turtle Trading strategy is one of them. The name of the system was given by famous commodity traders Richard Dennis. On Mid 1983, Richard with his buddy Bill Eckhardt decide to teach 13 newbies to trade. These beginners, whittled down from over 1000 applicants, are known as the 'Turtles'. Actually 'turtle' is trend following strategy. The basic idea of this strategy is " Trend is Friend" . Method of turtle trading is BUY when breaking out of upside trading range and SELL on downside breakouts. For example , buying new 20 days highs as an entry signal and maintaining a 10 days low as the stop loss. Once markets move in your direction the stop loss is trailed as new 10 day lows form. Some others thought is buying new 40 days highs as an entry signal and maintaining a 20 days low as the stop loss. Once markets move in your direction the stop loss is trailed as new 20 day lows form.
The system has both advantage and disadvantage. On the one hand, you would not be making too many day trades, on the other you might skip too many swing trading opportunities or enter the market at the end of the move.
Suggestion: TRY THE SYSTEM IN DEMO ACCOUNT first . After Practice then apply it in actual / live trading account.
