{"id":19830,"date":"2011-02-26T16:27:02","date_gmt":"2011-02-26T21:27:02","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=19830"},"modified":"2011-02-26T16:27:02","modified_gmt":"2011-02-26T21:27:02","slug":"turtle-trading-4-entries","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/02\/26\/turtle-trading-4-entries\/","title":{"rendered":"Turtle Trading 4 Entries"},"content":{"rendered":"<p>By Taro Hideyoshi<\/p>\n<p>The next piece, following markets and position sizing, of <a rel=\"nofollow\" href=\"http:\/\/shop.metastocktradingsystem.com\/?s=turtle\" target=\"_new\">turtle trading system<\/a> is entries.<\/p>\n<p>Most traders believe that entry is the most important aspect in any <a rel=\"nofollow\" href=\"http:\/\/forex4play.blogspot.com\/\" target=\"_new\">trading system<\/a>. For the turtles, they used only a very simple entry system based on channel breakout systems taught by Richard Donchian.<\/p>\n<p><a rel=\"nofollow\" href=\"http:\/\/www.metastocktradingsystem.com\/turtle-trading-entries.html\" target=\"_new\">The turtles&#8217; rules for entry<\/a> consist of two different but related breakout systems called System1 and System2.<\/p>\n<p><strong>System1<\/strong> was a shorter-term system based on a 20-days breakout. The turtles  entered positions when price exceed high or low of the preceding  20-days. The entry signal would be ignored if the latest breakout would  have resulted in a winning trade.  And this breakout would be considered a losing breakout if the price  moved 2N (N was calculated according to position sizing rule) against  the position before a profitable 10-days exit occurred.<\/p>\n<p>However  if the System1 breakout was ignored due to the winning trade, the  System2 would be used for entry to avoid missing of major moves.<\/p>\n<p><strong>System2<\/strong> was a longer-term system based on a 55-days breakout. The turtles  entered positions when the price exceeded by a single tick the high or  low of 55-days. All breakouts for System2 would always be taken whether  the previous breakout had been a winner or lost.<\/p>\n<p>After  turtles entered a single unit positions at the breakout, they would add  to positions every 0.5N intervals following their initial entry until  the maximum permitted number of units was reached.<\/p>\n<p><em>Example<\/em><\/p>\n<p>Suppose a turtle was trading Gold. The N was calculated as 2.50.<\/p>\n<p>The price broke the 55-days high at 310.<\/p>\n<p>Hence, turtle added first unit at 310.00.<\/p>\n<p>Therefore the second would be added at 310 + (0.5*2.50) = 311.25.<\/p>\n<p>The third unit added at 311.25 + (0.5*2.50) = 312.50 and so on.<\/p>\n<p>The  most of profits in a year might come from two or three large winning  trades. Therefore the turtles have to be consistency because if a signal  was skipped, this could affect the returns for the year.<\/p>\n<h3>About the Author<\/h3>\n<p>Taro is an experience trader who trades in stocks,  futures, forex. He strongly focuses on technical analysis, trading  systems and money management.<\/p>\n<p>If you would like to find more  articles on MetaStock Tutorials, MetaStock Formulas, Trading Systems and  Money Management. Please go to <a href=\"http:\/\/www.metastocktradingsystem.com\/\" target=\"_new\">MetaStock Trading System<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most traders believe that entry is the most important aspect in any trading system. For the turtles, they used only a very simple entry system based on channel breakout systems taught by Richard Donchian.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-19830","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=19830"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/19830\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=19830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=19830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=19830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}