![]() It benefits from the fact that many traders enter the day of the breakout on close. A variation of this pattern is the "Turtle Soup Plus One." The difference is that it occurs one day later. Normally, you should try to lock in your profits when the market makes them available. It can be applied either on futures markets or stocks. The authors suggest using a trailing stop for a trade that might last a few hours or even a few days. The stop-loss is one tick under today's low. After the new low has occurred, place an entry buy-stop five to 10 ticks above the previous 20-day low. The rules for buys are: - Today, you must have a new 20-day low and the previous 20-day low has to be at least four days earlier. It is a typical swing trading pattern, working well in volatile markets. However, sometimes reversals can be quite profitable. When the trend is strong, the reversal will not be long. The aim of the pattern is to profit from false breakouts. In the meantime, this is where the Turtle Soup opportunities lie. You must also keep your nerve and rely on a system that sooner or later will ride the trend that will reward you for your strong will and patience. To trade it in the real markets, you have to strongly believe in the concepts that it applies. It's beside the point to say that the percentage of wins is low due to the number of false breakouts and that the drawdown of the system is very large. This kind of system, Raschke and Connors noted, can be profitable when traded on a large basket of markets, and its success is dependent on capturing very significant trends. In the 1980s, a group of traders known as the Turtles used a trend-following system based on breakout of prices. Connors introduced the Turtle Soup pattern. Security: N/A Position: N/A In their famous book, Street Smarts: High Probability Short-Term Trading Strategies, Linda Bradford Raschke and Laurence A. Swing trading with short-term high volatility patterns can provide good opportunities for profits. Short-Term Patterns: Turtle Soup by Paolo Pezzutti ![]()
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