Trading systems are based on the concept of ‘ Trend Follower ‘and have existed because of Richard Dennis’ teachings or have another name turtle rules, requiring a complete trading system must have 6 things, namely :
6 things that must be considered
1. Market
What to buy / sell? The first thing to pay attention is what market we are going to trade, or in other words in the world of forex trading, such as which currency pair we are going to play in. This includes diversification, which can be interpreted as as how many types of currency pairs we will play
2. Size / Volume / Lot
How much to sell / buy. The size of how much to sell / buy also affects diversification and money management. Practically is the maximum number of Open Positions allowed .
3. Entry / open
When to open a position. If we have made a fairly sophisticated trading system, then the system will memberika n we signal when is the best time to enter the market.
4. Stop
When to close the position (in a loss)? So, turtle rules say that a trader who doesn’t want to close a position when he loses money will not last for a long time.
5. Exit
When to close a position (in a profit state) Apart from setting a loss limit, turtle rules also require determining when to exit at a profit.
6. Tactics
How to buy and sell The ins and outs of how to open a position also need to be taken into account, considering that in certain circumstances, sometimes our transactions are in the status of waiting for profits to arrive (floating loss status).
From here we can illustrate that the Turtle Trading System System is a Trend system Follower or follow the Trend. The point is, if you want to make a profit, don’t go against the trend.
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