System 1 Entry – Turtles entered positions when the price exceeded by a single tick the high or low of the preceding 20 days. If the price exceeded the 20-day high, then the Turtles would buy one Unit to initiate a long position in the corresponding commodity. If the price dropped one tick below the low of the last 20-days, the Turtles would sell one Unit to initiate a short position.System 1 breakout entry signals would be ignored if the last breakout would have resulted in a winning trade. The direction of the last breakout was irrelevant to this rule. Thus, a losing long breakout or a losing short breakout would enable the subsequent new breakout to be
taken as a valid entry, regardless of its direction (long or short). However, in the event that a System 1 entry breakout was skipped because the previous trade had been a winner, an entry would be made at the 55-day breakout to avoid missing major moves. This 55-day breakout was considered the Failsafe Breakout point. At any given point, if you were out of the market, there would always be some price which would trigger a short entry and another different and higher price which would
trigger a long entry. If the last breakout was a loser, then the entry signal would be closer to the current price (i.e. the 20 day breakout), than if it had been a winner, in which case the entry signal would likely be farther away, at the 55 day breakout. System 2 Entry – Entered when the price exceeded by a single tick the high or low of the preceding 55 days. If the price exceeded the 55 day high, then the Turtles would buy one Unit to initiate a long position in the corresponding commodity. If the price dropped one tick below the low of the last 55 days, the Turtles would sell one Unit to initiate a short position. All breakouts for System 2 would be taken whether the previous breakout had been a winner or not.
Looking forward to stock investment in the New Year Investing in stocks can be tricky mostly because this market gets greatly affected by the...