Strategy Turtle soup+1

This strategy is based on the « Turtle soup+1 » trading system developed by Larry Connors. It consists in detecting a bullish (bearish) signal among the last 20 candles of a Japanese candlestick.

There is a bullish signal if

  • The lowest price is recorded in the last candle
  • There are at least 3 candles between the 2 last lowest prices recorded
  • The close price of the last candle is above the former lowest price recorded

There is a bearish signal if

  • The highest price is detected in the last candle
  • There are at least 3 candles between the 2 last highest prices recorded
  • The close price of the last candle is below the former highest price recorded

We have added the following conditions to make the signal more relevant

In the case of a bullish signal :

  • The 20-day-CCI must be above -100
  • The 15-day-Repulse 15 must diverge upward against the two lowest prices recorded

In the case of a bearish signal :

  • The 20-day-CCI must be above 100
  • The 15-day-Repulse 15 must diverge downward against the two highers prices recorded

WARNING:

  • This trading system is dedicated to the most experienced investors
  • A stop loss allows you to close your position in the case you aren’t on the good way.

Efficieny rate of the strategy Turtle soup+1 on CAC40 companies on

Evolution of the efficiency rate of the strategy Turtle soup+1

 

Methodology applied :

The methodology applied to calculate the efficiency of a strategy is as follows:

  • Bullish and bearish signals are calculated every evening when the market is closed.
  • The reference price corresponds to the opening price following the detection of the signal.
  • The gain or the loss is calculated over a period of 40 days following the detection of the signal by taking the highest closing price recorded over the period.
  • This period is reduced in case of detection of an inverse signal.
  • The efficiency rate is calculated by dividing the sum of gains and losses on the sum by the sum of the gains.

This efficency is displayed in %.