Turtle Soup Rules for Fading Failed N-Bar Breakouts
Summary
The document explains Turtle Soup as a reversal strategy that trades failed breaks of recent highs or lows. A move beyond an N-bar extreme may trigger clustered stop orders; the strategy waits for price to return inside the range, then sells a failed high break or buys a failed low break. It turns that idea into configurable rules for lookback length, minimum age of the reference extreme, sweep window, minimum penetration, consecutive confirming closes, and an optional reversal candle body.
For risk and execution, the described system can place a stop beyond the sweep extreme or use a fixed distance, and set a target by reward-to-risk multiple or the opposite range boundary. It also includes per-direction position limits, duplicate-signal protection, broker stop-distance checks, chart markings, and optional trailing stops. The material describes implementation choices but provides no backtest results or evidence of profitability. It stresses that performance needs testing and that historical tests do not ensure live results; outcomes may depend on settings and market conditions.
Key ideas
- Turtle Soup fades a recent high or low breakout after price closes back inside the range.
- Depth, reference-level age, confirmation closes, and an optional reversal body help filter candidate sweeps.
- Stops can be placed beyond the sweep extreme, while targets can use a reward-to-risk multiple or the opposite range edge.
- Order controls include position caps, duplicate-signal guards, broker distance checks, and optional trailing stops.
- The document gives no performance results, so profitability remains unestablished and requires testing.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.