Sidus Turtle Trader Forex Trading Strategy

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Sidus Turtle Trader Forex Trading Strategy

Trend reversal and trend following traders are often placed on opposite sides of the spectrum. If you would come to think of it, both types of strategies do differ greatly from each other.

When it comes to market outlook, both types of traders usually have opposing expectations as to what the market might do. Trend reversal traders expect the market to reverse, while trend following traders expect the market to continue its current trending direction.

As a result of their differing outlooks and approaches, both types of trading strategies have its own advantages and disadvantages.

Trend following traders usually have higher accuracy because they are trading in the direction of an established trend. However, trend following traders also often have lower reward-risk ratios because they do not trade at the start of the trend but would rather enter and exit trades at the middle of a trend.

Trend reversal traders on the other hand enjoy the benefit of maximizing profits on a winning trade because they usually enter a trade at the beginning of the trend and exit the trade at the end of a trend. However, they also usually have lower win rates because they are often trading against an established trend.

Sidus Turtle Trader Forex Trading Strategy is a strategy that meets the two opposing types of trading strategies in the middle. It takes trades that are in line with the general trend direction, while at the same time enters a trend reversal trade on a shorter horizon. This allows traders to enjoy the benefits of a high yield and high accuracy type of strategy.

Turtle Channel Indicator

The Turtle Trading Channel, also known as the Turtle Channel indicator, is a trend following indicator developed to simplify the process of identifying trend direction and trend reversals.

It identifies trend direction based on an underlying mathematical formula derived from the historical movement or price. It then plots two lines to indicate trend direction or trend bias.

The main line is a solid line that changes color depending on the direction of the trend. If the trend is bullish, the line is color dodger blue. If the trend becomes bearish, the line becomes red. The line also shifts depending on the trend. If the trend is bullish, the line is below price action. If the trend is bearish, the line shifts above price action.

The second line is a dashed line. Like the main line, it also shifts above and below price action to indicate trend direction.

The Turtle Channel indicator can be used as a trend direction filter, a trend reversal signal and a trailing stop loss placement.

As a trend filter, traders can avoid taking trades that are not inline with the trend based on the color of the main line.

As a trend reversal signal, traders can take trades whenever the line shifts or the color of the line changes.

Traders can also trail the stop loss behind either the dashed line or the main line to protect profits.

Sidus v2

The Sidus v2 indicator is a trend following indicator which is based on the crossover of moving averages.

Moving average crossovers are a viable way to trade trend reversals. It allows traders to objectively identify when and where the market trend is reversing by looking at the crossover of the lines. The question is which moving averages and what method to use.

The Sidus v2 indicator uses a combination of Exponential Moving Averages (EMA) and Relative Strength Index (RSI) to identify potential trend reversals.

It plots two lines representing the EMAs used. The faster line is blue, while the slower line is red.

Potential trend reversals are based on the confluence of the crossover of the two moving averages and a trend reversal signal coming from its underlying RSI. The indicator then conveniently plots an arrow pointing the direction of the trend reversal.

Trading Strategy

First, this trading strategy identifies the general trend direction based on the Turtle Channel indicator. This is simply based on where price action generally is in relation to the Turtle Channel lines and the color of the main line of the Turtle Channel indicator. When zoomed out, price action should also be showing a trending market which is in line with the direction of the Turtle Channel indicator.

As soon as the trend is identified, we then wait for the Sidus v2 indicator to provide a trend reversal signal by plotting an arrow pointing the direction of the trend indicated by the Turtle Channel indicator.

Indicators:

  • Sidus v.2
  • TheTurtleTradingChannel

Preferred Time Frames: 30-minute, 1-hour and 4-hour charts

Currency Pairs: FX majors, minors and crosses

Trading Sessions: Tokyo, London and New York sessions

Buy Trade Setup

Entry

  • Price action should be above the dashed and solid lines of the Turtle Channel indicator.
  • The solid line of the Turtle Channel indicator should be color dodger blue.
  • The blue line of the Sidus v2 indicator should cross above the red line.
  • The Sidus v2 indicator should plot an arrow pointing up.
  • Enter a buy order upon the confirmation of these conditions.

Stop Loss

  • Set the stop loss below the dashed line of the Turtle Channel indicator.

Exit

  • Close the trade as soon as the Sidus v2 indicator plots an arrow pointing down.
  • Close the trade as soon as the Turtle Channel line shifts above price and changes to red.

Sidus Turtle Trader Forex Trading Strategy

Sidus Turtle Trader Forex Trading Strategy 2

Sell Trade Setup

Entry

  • Price action should be below the dashed and solid lines of the Turtle Channel indicator.
  • The solid line of the Turtle Channel indicator should be color red.
  • The blue line of the Sidus v2 indicator should cross below the red line.
  • The Sidus v2 indicator should plot an arrow pointing down.
  • Enter a sell order upon the confirmation of these conditions.

Stop Loss

  • Set the stop loss above the dashed line of the Turtle Channel indicator.

Exit

  • Close the trade as soon as the Sidus v2 indicator plots an arrow pointing up.
  • Close the trade as soon as the Turtle Channel line shifts below price and changes to dodger blue.

Sidus Turtle Trader Forex Trading Strategy 3

Sidus Turtle Trader Forex Trading Strategy 4

Conclusion

This trading strategy is a viable trade strategy because of its decent win rate and risk-reward ratio. If used properly, this strategy could potentially provide consistent profits.

However, traders should not take trade signals as it is. It should also be matched with price action confirmations. This is often a price rejection of the Turtle Channel lines or a momentum candle as price resumes the direction of the trend.

Traders who could incorporate this strategy with good price action setups can profit from this strategy.

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