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Turtle Soup Trading Strategy

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Today we will tell you about the trading strategy named Turtle Soup. The group of traders who called themselves Turtles used almost the same techniques for the active profit-taking. One very successful commodity and futures trader – Linda Bradford Raschke – combined her own trading techniques and those that were used by Turtles, created a brand-new strategy and dubbed it Turtle soup.
The purpose of the strategy is to find false breakouts in the market. What is a false breakout? Imagine price breaks a certain support or resistance, but then quickly reverses not being able to advance further. This quick price reversal is called a false breakout. Many traders hate such market’s hanky-pankies and think of false breakouts as of exceptionally dangerous zones. Turtle Soup trading strategy doesn’t teach us steering away of false breakouts, it reveals us trading techniques of how we can profit from them.
Key ingredients
Timeframe – not less M15
Rules of the game – the bullish scenario
1. Open the chart. You need the 20 last candles. This is your period of analysis.
2. Find the high and low of the chosen range and mark them with horizontal lines for clarity.
3. The minimum or maximum levels you’ve identified should be located at a distance of at least 4 days from your today’s candle.
4. After the price fall below the period’s low place, the Buy Stop order 5-10 pips above the previous 20-candle low.
5. If the order is triggered, place a Stop Loss order 1 pip below the minimum of the current candle.
6. If your position is profitable, use the trailing Stop Loss: move your Stop Loss after the price, as the price goes in your favor.
We must admit that it is a rather volatile strategy with the potential for substantial gains. Although it seems to be really easy, in practice, it’s not. Novice traders may experience some difficulties in finding false breakouts.
Source  fxbazooka

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