The Forex is rich with the secrets. This is not surprising because in the international currency market multi-billion dollars’ cash flows are focused. And money, as you know, loves rationality, quietness and … secrets.
A successful trading in the Forex and stock markets is possible only in the presence of a trading strategy and its proper using. Consider the famous Turtle trading strategy, which is well known in the trading community as the “Turtle Secret”.
Turtle trading strategy
The Turtle is used for a trade in the market as a long-term and medium-term trading strategy and allows beginners to achieve a considerable success in the Forex for a short time. The essence of the trading strategy is that it is completely regulate all trade aspects, preclude an acceptance of the decisions by a trader and is a static command strategy. The Turtle allows to a trader with a small deposit to earn a profit, exceeding several times an initial capital over a short period.
Richard Dennis is the creator of a successful trading strategy
Richard Dennis is considered a founder of a successful trading strategy. He is a known and legendary in the world of money person. In the distant 1970’s of the last century Dennis has borrowed a few thousand dollars, and ten years later his personal capital has amounted $ 200 million. The ingenious trader was sure that every disciplined trader, who steadily uses his tested trading strategy, could to earn in the Forex.
To prove it, he recruited and trained a group of novice traders. Being the busy, Dennis taught his students “turtles” during just two weeks, after that he gave to each of them 1 million of his own money to work in the market. Five years after the experiment completion his Turtles earned an aggregate profit of 175 million dollars.
This trading strategy has successfully established itself at the stock market and futures trading. Let’s consider the Turtles trading strategy, or rather, what’s known because the R. Dennis’ disciples have been strictly keeping his secret for a successful trading in the Forex market.
Recommendations and using of the Turtle strategy
In order to be a successful trader and earn money in the Forex, you need to:
- carry out a rigorous limitation of the open transactions number;
- trade in the market is carried out at two or three currency pairs;
- enter the market on breakouts of 20 bar max/min is necessarily on the 55-bar extremes breakdown;
- continue to trade strictly according a certain direction, if the trade in this direction is profitable;
- conclude the opposite trading deals, if the trade in a certain direction becomes unprofitable.
The Turtle trading strategy is extremely difficult, because it implies the trend medium-term and long-term trade with a relatively small deposit. A special role in the strategy belongs to the strict trader’ self-discipline – profitable periods for trade by this method may be months and even years away.
The Turtles Rules were significantly different from other successful practicing trading strategies. For example, if a price broke an upper level, the Turtles continued to build buy positions, following the rule “trend is your friend”, when other traders were making sale deals counting on the pullback after the break of the resistance line.
A great importance was given to the True average range using to change a size of open positions. According the Turtle, it is recommended to take large positions on a more sustainable trend, and gradually reduce them in the very volatile market in order not to risk more than 2% of a total deposit amount by one trade. When you open a deal you should to know exactly where close it in case of loss.
The secret of a successful Forex trading by Turtle or other successful trading strategies is simple and ingenious at the same time – set for yourself trading rules and follow them very strictly.