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Steve Karnish wrote:
> Swiped from the site:
>
> "Possible Turtle Soup Plus One Buy Setups
>
> Trading breakouts of 20-day high or low prices is one of the most popular
> trend-following methods used by commodity trading advisors. This technique
> was created by Richard Donchian but made famous by a successful trading
> group led by Richard Dennis known as the "Turtles." Over long time periods,
> the 20-day breakout strategy tends to be profitable, but it also is subject
> to large drawdowns and repeated false breakouts.
>
> The Turtle Soup Plus One method is designed specifically to take advantage
> of these false moves. For a buy set-up, a market must close at a new 20-day
> low and its previous 20-day low must have been more than four days ago. If
> the next day the market trades above the previous day's low, it is
> considered a false breakout and a buy signal is triggered. (For sells,
> reverse the rules.)
>
> These are the futures that have made new 20-day lows for the day and
> qualify as Turtle Soup Plus One buy set-ups if they reverse. More
> information on trading the strategy can be found in the book "Street
> Smarts" by Larry Connors and Linda Raschke.
>
> Reminder: We are in no way recommending the purchase or short sale of these
> futures markets. Trading should be based on your own understanding of
> market conditions, price patterns and risk; our information is designed to
> contribute to your understanding. Controlling risk through the use of
> protective stops is critical. "
>
> Steve Karnish CCT
Steve,
It may be interesting to note above that 20 market days is approximately
one Lunar Cycle.
Cheers,
Norman
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