170# Turtle Trading System with ATR Profit

Joy22 2025

The Turtle Trading System is a trend-following strategy that aims to capitalize on market movements by using breakouts and a defined risk management system. This strategy enters long positions when the price breaks above a recent high and short positions when it falls below a recent low. Additionally, it includes an optional ATR-based profit target to automatically take profits once the market moves a defined distance, providing flexibility to traders.

Setup

The strategy relies on two primary periods for calculating entry and exit points:

Entry Length (n): The period over which the strategy calculates the highest and lowest prices to trigger entries. The default value is 55.
Exit Length (e): The period used to calculate the highest and lowest prices for exit conditions. The default value is 20.

Additionally, the strategy uses the Average True Range (ATR) for setting an optional profit target.

Key parameters:

ATR Multiplier: The ATR is multiplied by this value to set the profit target. The default value is 3.0.
Use ATR Target: A boolean input allowing the user to choose whether to use the ATR-based profit target for exits.

Buy Conditions

The strategy enters a long position when the price closes above the highest high of the past n periods.

Condition: Close > Highest(n)

This means that a breakout above the highest price within the defined n period triggers a buy signal.

Sell Conditions

A short position is entered when the price closes below the lowest low of the past n periods.

Condition: Close < Lowest(n)

When the price breaks below the lowest point of the last n periods, it triggers a sell (short) signal.

Exit Conditions

The strategy includes two types of exit conditions:

Standard Exit Based on Periodic Highs and Lows:
- Long Exit: A long position is closed if the price falls below the lowest low of the past e periods.
- Short Exit: A short position is closed if the price rises above the highest high of the past e periods.
ATR-based Exit (Optional):
If the ATR Target is enabled:
- Long Exit: The position will exit when the price reaches the target price, which is calculated as the current close plus a multiple of the ATR (Close + ATR * Multiplier).
- Short Exit: The position will exit when the price reaches the target price, which is calculated as the current close minus a multiple of the ATR (Close - ATR * Multiplier).

Conclusions

This trading strategy is designed to capture major trends by entering long or short positions based on breakouts. The strategy uses a simple but effective method for determining entry points (breaking above the recent high or below the recent low). The exit points are defined by either the ATR-based profit targets or by periodic high/low levels, offering flexibility in profit-taking.

Key Features:

Breakout Entry: Enters long when the price breaks above a recent high and short when it breaks below a recent low.
Exit Strategies: Uses both a dynamic ATR-based target and periodic levels for exits.
Risk Management: The ATR-based exit offers a way to lock in profits once the market has moved a significant distance, allowing traders to participate in trending markets while minimizing premature exits.

This strategy can be customized with the ATR Multiplier and the option to enable or disable the ATR target, giving traders control over their risk and reward parameters.

By combining breakout trading with dynamic profit targets, this strategy can adapt to various market conditions, making it a versatile approach for trend-following traders.