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Turtle soup + 1: efficient Forex strategy

June 10, 2020

June 10, 2020

Turtle soup + 1Dmitri Demidenko

Those who make decisions are responsible for them. A decision to open a trade is a prerogative of a trader, who needs to take account of market professionals’ and the crowd’s behaviours. Many traders prefer waiting for a trading day to close. Thus, the traders who use the [Turtle soup][1] strategy have some time for thinking a trade over. A trade is carried over to the next trading day and this updated strategy is called “Turtle soup + 1”.

The author of this strategy is Linda Raschke. She singled out the following conditions necessary for forming a trading system:

- the market falls to a 20-bar bottom;

- the previous 20-bar bottom must have formed at least 3 trading sessions earlier (for the daily chart).

If these conditions are met, a trader can

- place a pending order to buy at the previous 20-bar bottom’s minimum on the second day following the formation of a new 20-bar bottom;

- place a protective stop order at the new 20-bar bottom’s minimum or at the next day’s minimum, depending on which of them is lower, if the pending buy order has worked;

- fix a part of profits in 2-6 trading days and use a floating stop order to control the rest of the position.

The necessary conditions were met for [USD/JPY][2] on the daily chart in early May: a 20-bar minimum formed and the previous 20-bar minimum had formed 5 days earlier. A trader waits for a trading day to close and places a pending order to buy on the day following the formation of the new 20-bar minimum. The activation of the pending order allows placing a stop order at the minimum level minus a few points and watching a market reversal. A part of the position is closed and the market grows by 4.5 figures afterwards.

Turtle Soup + 1 strategy on the daily chart of USD/JPY

![LiteForex: Turtle soup + 1: efficient Forex strategy][3]

Having some time in reserve, a trader can analyse the situation on different time frames. For example, RSI moved to the oversold zone on the H1 chart of [USD/JPY][2], which may be a confirming signal of a correction or a reversal of a bearish trend.

Turtle Soup + 1 strategy on USD/JPY’s H1 chart

![LiteForex: Turtle soup + 1: efficient Forex strategy][4]

The same conditions apply to a bullish Forex market and an ascending trend:

- the market grows to a 20-bar peak;

- the previous 20-bar peak must have formed at least 3 trading sessions earlier.

- a pending order to sell is placed at the previous 20-bar peak’s maximum on the second day following the formation of a new 20-bar peak;

- place a protective stop order at the new 20-bar peak’s maximum or at the next day’s maximum, depending on which of them is higher, if the pending order has worked;

- fix a part of profits in 2-6 trading days;

- use a floating stop order to control the rest of the position.

A good example is the situation which occurred on the [USD/CAD][5] chart. The distance between the new and the previous 20-day maximums is 8 bars. A position gets opened on the day following the pattern formation.

Turtle Soup + 1 strategy on the daily USD/CAD chart

![LiteForex: Turtle soup + 1: efficient Forex strategy][6]

With some time in reserve, a trader can switch to a smaller time frame and see a clear MACD divergence, which is an important reversal signal in technical analysis.

Turtle Soup + 1 strategy on the H1 USD/CAD chart

 ![LiteForex: Turtle soup + 1: efficient Forex strategy][7]

I think the Turtle Soup + 1 strategy is more interesting than Turtle Soup.   It doesn’t require an instant reaction and a trader has some time to think a trade over. On the other hand, a trader may miss out on a trade while waiting for the second bar - the one which follows the 20-day extremum - to form.

P.S. Did you like my article? Share it in social networks: it will be the best “thank you” :)

Ask me questions and comment below. I’ll be glad to answer your questions and give necessary explanations.

Useful links:

  • I recommend trying to trade with a reliable broker [here][8]. The system allows you to trade by yourself or copy successful traders from all across the globe.
  • Use my promo-code BLOG for getting deposit bonus 50% on LiteForex platform. Just enter this code in the appropriate field while [depositing][9] your trading account.
  • Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders

Price chart of USDJPY in real time mode

![Turtle soup + 1][10]

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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  1. www.liteforex.com/blog/for-beginners/turtle-soup-good-old-things/
  2. my.liteforex.com/trading/chart?symbol=USDJPY&returnUrl=true
  3. cdn.liteforex.com/cache/uploads/blog_post/strategies-forex/usdjpy1-10-06-20.jpg?w=30&s=3527b929b2b6b1a28aeefe8c7c8cdd4e
  4. cdn.liteforex.com/cache/uploads/blog_post/strategies-forex/usdjpy2-10-06-20.jpg?w=30&s=8a8d3207c1b23a9a8cef2d3758d39153
  5. my.liteforex.com/trading/chart?symbol=USDCAD&returnUrl=true
  6. cdn.liteforex.com/cache/uploads/blog_post/strategies-forex/usdcad1-10-06-20.jpg?w=30&s=1e0693d1add6c9807902a791b68cea57
  7. cdn.liteforex.com/cache/uploads/blog_post/strategies-forex/usdcad2-10-06-20.jpg?w=30&s=cc36f08d7233378c31d739558958bf82
  8. my.liteforex.com/?category=for-beginners&slug=turtle-soup-1&openPopup=%2Fregistration%2Fpopup&utm_source=blog&utm_medium=article&utm_campaign=bonus
  9. my.liteforex.com/deposit/?category=for-beginners&slug=turtle-soup-1&promo_code=BLOG&utm_source=blog&utm_medium=article&utm_campaign=bonus
  10. cdn.liteforex.com/cache/uploads/blog_post/strategies-forex/liteforex-blog-turtles-10-06-20.jpg?q=75&w=1000&s=221249a3602828395c0d1e30038ddc22