By Taro Hideyoshi
The tactics is about miscellaneous guidelines to cover the rest of trading the turtle system rules. Besides the other six pieces of turtle trading system, there are some remaining important details that can make difference in profitability of trading.
One thing of tactics is how to enter orders. Turtles were told to place limit orders instead of market orders since the limit orders offer a chance for better fills and less slippage than do market orders.
The idea behind using limit orders is to place order at the end of the bounce of prices. It takes some skill to be able to determine the best point to place a limit order but with practice, traders should be able to get better.
There will be some times that market moves very quickly, called fast market. During fast market conditions, placing a limit order might not get filled. Turtles were advised not to panic and wait before placing an order. They would wait until some indication of at least a temporary price reversal before placing orders which often resulted in much better than achieved with a market order.
There will also be some times that signals come at once. Traders should buy the strongest and sell short the weakest. As turtles, they used various measures to determine strength and weakness.
Some would consider from how many N the price had advanced since the breakout, and buy the market that had moved the most. Others would subtract the price 3 months ago from the current price and then divide by the current N to normalize across markets. The strongest was the highest and the weakest was the lowest.
That’s it for turtle trading rules. The keys of success trading are consistency and discipline because by knowing these rules is not enough to make you succeed.
About the Author
Taro is an experience trader who trades in stocks, futures, forex. He strongly focuses on technical analysis, trading systems and money management.
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