Buy Signals Sell Signals: Strategic Stock Market Entries and Exits pdfdrive com

Markets – What to buy or sell
- The Turtles traded all major futures contracts, metals, currencies, and
commodities.
- The turtles traded multiple markets to diversify risk.
Position Sizing – How much to buy or sell
- Turtle position sizing was based on a market’s volatility using the 20-day
exponential moving average of the true range.
- The Turtles were taught to trade in increments of 1% of total account equity.

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Entries – Buy signals and sell signals
- The Turtles traded a Donchian breakout system, System 1 entered a 20-day
breakout and System 2 entered a 55-day breakout.
- Positions were added to in a winning trend. (Pyramiding)
Stops – When to get out of a losing position
- System 1 exited at a 10-day breakout in the opposite direction of the entry and
System 2 exited at a 20-day breakout in the opposite direction of the entry.
- No trade could incur more than a 2% equity risk, stop losses and position sizing
were planned accordingly
Tactics – How to buy or sell
- The most important aspects of successful trading are confidence, consistency,
and discipline.
- The Turtles believed that successful traders used mechanical trading systems.
- They traded liquid markets only.
Here is a link to the Original Turtle Trader System Rules

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Simple trend following systems
Here are three basic trend following strategies for trading a diversified futures
portfolio.
Entries and Exits:

- Enter on 30-day breakout/ Exit on a 15-day breakout in opposite direction

- Enter on 50-day breakout/ Exit on a 25-day breakout in opposite direction
- Enter on 100-day breakout/ Exit on a 50-day breakout in opposite direction
Stop loss: A filter to reduce drawdowns: 3 ATR stop based on the past 100-days.