First Turtle Trade on Forex

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Snowyskater

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I am just starting out and am following the Turtle Rules within the forex markets (mainly EURUSD) on a demo account at present.

So last week I set up my indicators on Tradestation chart showing 20 day (end of day) breakouts of high and lows and low and behold on 11/12 I get a new indicator showing a 20 day high, so I go long for 1 lot (L@ 1.33475) and place my stop loss as per the rules. Needless to say the charts go through the roof until the 18/12 it reaches a high of 1.4591 generating a profit of approx. $10.5k (demo account remember - and boy was I wishing I had done it with real money!). However this looks like it has swung over half the distance of the 12 month low to high in a little over a week.

My dimela is that the Turtle rules say that the true exit for the 20 day breakout strategy is when the price falls to the 10 day low when you are in a long trade, however this price movement has been so radical that to follow that rule would mean a loss at present. As I write (over the weekend) the price has fallen to 1.3905 still leaving a (virtual) $5.5k profit - am I better to take the profit and close the trade or stick to the rules. My thinking at present is that I entered a trade not in a trend, but a volitile spike (and probably got lucky).

Has anybody got any thoughts on this, and also trading the Turtle rules in the Forex markets?

Any comments would be greatly appriciated.
 
I have read, and reread the literature and no they don't. They add to positions, but because they are working to long trends rather than scalps they are prepared to loose upto 30-40% profits in order to hit a long running trend.
 
ok.. doesn't look like a very attractive system to me :)

maybe good for huge accounts, not me... I prefer to bank partial profits and run with "free trades"

"free trades" is the name of the game IMO.
 
Snowyskater said:
Has anybody got any thoughts on this, and also trading the Turtle rules in the Forex markets?

Any comments would be greatly appriciated.
Click to expand...

Keep in mind that the Turtle system is intended to be applied an array of markets for diversity of risk and to provide sufficient trade opportunities. The forex market is too narrow to provide that diversity. That doesn't mean you can't use the methodology. You just need to realize the inherent drawbacks to doing so.
 
Hi Rhody,

The more time I spend on this and other forums the more I am beginning to realise this. I am also concerned about the wider stops that I will have to put in compared to intraday trading positions.
I suppose this is the start of the journey for me in learning a system, trying it out and seeing if it works for me or not. I still work full time (more than full time most of the time!) so intraday trading is difficult, but potentially I can still get a couple of hours in at the start of the London session or the end of the NY session to practice, I just need to find a simple system that I can trade with. I am current looking at the 3 ducks method as posted elsewhere in this forum.
In case anyone wanted to know I got out of the trade and walked away with money – beginners luck!
 
Just my two cents but one of the key things which Curtis constantly said that separated him from the rest of the Turtles was that he was the only one to follow the rules explicitly. That's the beauty of being in demo, use it and see how well you can trust the system.
 
If you search on line you could probably find them. For a more thorough discussion, though, you may do well to read Way of the Turtle by Curtis Faith (review). Faith was a Turtle.
 
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