How Does the Forex Turtle Strategy Work?
The Turtle strategy emerged in the 1980s and has become one of the most famous methods. It originated from an experiment, which was supposed to prove that absolutely anyone can make money on trading.
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Types of Turtle Strategy
The Forex Turtle strategy is quite simple. It is based on 20-day and 55-day positions. A price breakout serves as a buy or sell signal.
This type relies on an interval of 20 days. If the price breaks through the maximum by at least 1 point, it is a signal for a buy trade. A breakout of the period low is a sell signal. If the previous deal closed using this system was profitable, it is not recommended to open a new order.
This Forex Turtle trading system is built on an interval of 55 days. The principle of operation is the same as for short-term trading. However, transactions must be carried out in one unit, after which, if everything went well, you can open the following transactions. A movement in the direction opposite to the 20-day trend is considered a signal to close the deal.
Do not forget that losses should not exceed 2% of your deposit. The stop-loss is determined as Nx2, where N is equal to one percent of the deposit.
Working with the Trend Indicator
The simpler indicator works, the better it is. This applies to Forex profit boost signals.
This indicator has three signals:
- Red indicates a downward movement. Selling should be considered.
- Blue indicates an upward movement. You can start buying.
- Yellow is flat. It is the indicator of lateral movement or reversal. The larger the yellow line, the higher the chance of a trend reversal.
It should not be forgotten that you can make a profit only with strong movements since there are many false signals in a calm market.