Turtle Trading Indicater MT4 - Forex Trading Arena

This trading strategy, created by Dennis Gartman and Bill Eckhart, uses breakouts of historical highs and lows to initiate and exit trades. It opposes the traditional buy low and sell high technique. This system was taught to regular people, and nearly all became successful traders.

The key rule is to trade based on an N-day breakout and to take profits when an M-day high or low is met, ensuring N is greater than M. For instance, you would buy on a 10-day breakout and end the trade if the price hits a 5-day low. Similarly, you would sell on a 20-day breakout and end the trade if the price hits a 10-day high. In this system, the red and blue lines indicate trading activities, while the dotted line signifies exits.

The original system guidelines are:

Go long when the trading line turns blue.
Go short when the trading line turns red.
Exit long positions when the price touches the exit line.
Exit short positions when the price touches the exit line.

The recommended initial stop-loss is set at ATR * 2 from the opening price. Default settings were 20-10 and 55-20. I have modified the algorithm slightly to produce early entry signals and prevent random trend swings in high volatility conditions. Now, this indicator signals a trend change only when a bar closes beyond the current trendline, rather than just touching it like a regular stop-loss order. The restriction is that trend changes can only be detected once the last bar has closed. For strict adherence, the original version is also accessible.

This indicator works best in conjunction with another indicator, the classic Turtle Trading Indicator, to represent the same period or the failsafe trading system and gather additional signals if you have been stopped out. Both indicators allow for trading alerts to be enabled or disabled according to your trading setup.

Original Turtle Rules:

To follow the Turtle trading method exactly, set up two indicators: one for the main system and another for the failsafe system. Configure the main indicator with TradePeriod = 20 and StopPeriod = 10 (S1). Configure the failsafe indicator with TradePeriod = 55 and StopPeriod = 20, using a different color (S2).

S1 Entry Strategy:

Buy 20-day breakouts with S1 only if the last trade signaled was a loss.
Sell 20-day breakouts with S1 only if the last trade signaled was a loss.
If the last signaled trade by S1 was a win, do not trade regardless of direction or whether you traded the last signal or not.

S2 Entry Strategy:

Buy 55-day breakouts only if you ignored the last S1 signal and the market is rising without you.
Sell 55-day breakouts only if you ignored the last S1 signal and the market is dropping without you.

The Turtles had a gradual position sizing strategy that increased their gains. Once a trading decision is made:

Enter the market with 2% risk. Set stop-loss at 2xATR from the opening price.
If the position moves in your favor by 0.5xATR, enter the market again with 2% risk and adjust all stop-losses to 2xATR from the current price.
Replicate this process for each 0.5xATR move in your favor, but stop adding positions after four have been taken.

Exit Strategy:

Exit long positions taken using S1 if the price action closes below a 10-day low.
Exit short positions taken using S1 if the price action closes above a 10-day high.
Exit long positions taken using S2 if the price action closes below a 20-day low.
Exit short positions taken using S2 if the price action closes above a 20-day high.

The Turtles maintained strict money management rules. Initial position risk was 2%, which decreased based on current drawdowns: