PZ Turtle Trading EA MT5
adviser Turtle Trading It is an implementation of the original trading system Dennis Richards and Bill Eckhardt, better known as the Turtle Trader ( "Turtle traders"). Advisor follows all the rules of the system, repeating it to the smallest details, including the latest filtering signal and drawdown management.
- Trade precisely as did the "turtle traders"
- Capture all of the significant market movements
- Follow the trend to the very end and profit regardless of the direction of price movement
- Get the maximum profit by using proven trend-following systems
- Superb semi-assistant for experienced traders
- Fully automated trading 24 hours a day 5 days a week
Download the free indicator!
Turtle Trading indicator for MT5 was at one time published for free. Please download it in order to understand the trading strategy.
introduction
The story of the "turtle" began with a bet between American multimillionaire trader Richard Dennis and his business partner William Eckhard. Dennis argued that trading can be taught, but Eckhardt believed that the determining factor for success in trading is a genetic predisposition - successful traders have an innate sense of time and the gift of recognition of market trends. What happened in 1983-1984 gg., It was one of the most famous experiment in trading history. Shows the average profitability of around 80% per annum, the experiment proved that any trader is able to succeed by following a set of rules, and if there are sufficient funds.
In mid-1983, Richard Dennis placed an ad in the Wall Street Journal newspaper that he is looking for participants without a trading experience for the project to train your trading system. To participate in the project were selected 21 men and 2 women from different social strata. A group of traders were placed in a room in downtown Chicago, and within two weeks, Richard Dennis taught them the basics of futures trading. Almost all of the participants of the "Turtles" have become successful traders.
entry strategy
Turtles used two the breakdown (breakout) system. The system №1 (System One, S1) to enter into a transaction using the sample cost 20-day range. However, to increase the chances of catching the big trend of the inputs are filtered according to the rule is ignored if the previous signal was profitable.
However, this filter has a problem. What if the Turtle will miss the entrance to the market in case of breakdown, a breakdown of the missing will be the beginning of a huge profitable trend upward or downward? Not very nice to be on the sidelines when the market take-off!
In cases where the entry into the market at the break of the 20-day range has been passed, and the market is trending, trade rules allow the entry into the market of system №2 (System Two, S2), based on the breakdown of the cost of the 55-day range. Such a fault-tolerant system allowed the turtles to catch big trends, signals that were missed by the filter.
inputs strategy using system №2 (System Two):
- Buy in case of break-up cost 55 day range (if there is no position);
- To sell in case of break down at the cost of 55-day range (if there is no position).
inputs strategy using system № 1 (System One):
- Buy price in case of break up the 20-day range, if the last transaction signal on system S1 has a loss;
- Selling price in case of break down the 20 day range (if the last transaction signal on system S1 was unprofitable).
Calculation of Stop Loss levels for all transactions made on the basis of Average True Range values for the last 30 days. Initial Stop Loss level has always been equal to the ATR (30) * 2, or 2 units of volatility. In addition, in order to maximize the profits from successful transactions using pyramiding turtle. When this transaction is allowed 4, the distance between which is 1/2 units volatility.
Exit strategy
To exit positions used a breakout in the opposite direction, allowing the turtles remain in the market for long-term trends.
Strategy outputs №2 system (System Two, S2):
- Close long positions when the price touching a 20-day low;
- Close short positions when the price touch 20-day high.
Strategy system outputs № 1 (System One, S1):
- Close long positions when the price touching a 10-day minimum;
- Close short positions when the price touch 10-day high.
Capital Management
The initial value of risk for all trades 2%. However, aggressive pyramiding has a downside: in the absence of large movements of trending small losses from false breakouts will grow faster than the limited capital traders.
How Eckhardt taught the turtles cope with a series of misfortunes and defend the capital? The solution is a significant reduction in the volume of trade. When the market turns, this preventative measure to reduced trading volume increases the likelihood of a quick recovery, enabling again making big money. The rules were simple. For every 10% drawdown turtle cut the amount of risk capital by 20%. This also applies to higher values: the drawdown of 40% account risk capital should be reduced by 80%!
settings
When the advisor start on any chart you will be prompted to specify the number of input parameters. Do not despair if you feel that there are too many. All parameters are grouped into blocks, which are self-explanatory. That's what makes each block parameters.
- Turtle Trading Settings (Turtle Trading Settings)
This group of settings allows you to adjust the period of the trading systems S1 and S2, as well as the use of filters. - Adding to positions (Adding to positions)
After entering the market tortoise added three more positions. Each of the newly added position is opened when the market was moving in the trader's favor to 50% of ATR. This group of settings allows you to configure or disable this behavior.
- Stop-loss Settings (Stop loss settings)
The initial stop-loss value for all default transactions exceeds Average True Range twice. This option is also set.
- Drawing Settings (Render settings)
Setting displayed on the screen colors and sizes of arrows and dots (all signals are not taken into account when the filter). - Money Management (Capital Management)
For every 10% drawdown turtle cut the amount of risk capital by 20%. This group allows you to enable or disable this behavior, as well as adjust the overall money management parameters.
important details
- The LED is for Turtle Trading Expert Advisor does not necessarily
- EA trades at the close of the bar
- Exit strategy evaluates each tick
- EA trades precisely as did the turtle
- Experience advisor in various markets!
Commerce and backtesting
- Turtle Trading Strategy was designed to trade on daily charts
- Learn screenshots to select the optimal settings for EURUSD
- It is enough to test mode "the OHLC on M1"
- Please run the optimization before trade
Author
Arturo Lopez Perez, a private investor, speculator, programmer and founder of Point Zero Trading Solutions.
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