Best forex automated trading system
The legendary story of best forex automated trading system Turtle Trades. If you don’t know about the Turtles and the story behind them, you can read here.
My question always was, 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.