Automated forex cash reviews
The legendary story of the Turtle Trades. If you don’t know about the Turtles and the story behind them, you can read here. My question always automated forex cash reviews, are the mechanical systems that they used still valid today? These systems didn’t have any discretionary rule.
Everything, from entries to exits, position sizing to money management, everything was clearly established to the very last detail. The system uses the daily timeframe and the rules are surprisingly simple. Buy when the current price is higher that any other high in the previous 55 days. ATR the system is flexible to current volatility.
The ATR used is evaluated over 20 days. Don’t put any Target Profit on the orders. The goal is to let them run as far as possible in your favor. So, if you have a farther away Stop Loss, the positions size will be smaller, and viceversa.
Once inside the trade, if price moves in your favor by half the ATR, then add another long trade. And you do this until you have a maximum of 4 open trades in the same direction. Every time a trade is entered, move up the Stop Loss of the existing trades, to the same price of the Stop Loss calculated for the new trade just entered. Or exit when Stop Loss is hit. For short positions the rules are the same but the other way around. You enter when the price is the lowest it has ever been in the last 55 bars and you exit when price is the highest price seen in the last 20 bars. This trading system has all the ingredients recommended by professional Forex traders: it cuts losses short, it lets winners run, it adds to winning positions.
Notice in the above picture how all 4 trades were profitable. However, notice how much of the profit was lost. With some optimization that I will explain in this post, the system can be much more profitable and let fewer portions of the profits slip away. Pretty simple system but incredibly powerful. Buying at a 55 day high is tough as that’s the point where most traders think the move is done and start fearing a reversal. Same for shorts when you initiate a short position at the 55 day low. Entries are definitely hard to digest psychologically speaking.