Turtle Short Breakout Pyramiding Strategy
This strategy adapts the famous Turtle system for short trading, pyramiding on key support breaks in downtrends. It is a typical trend-following breakout pyramiding system.
Strategy Logic:
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Set 10-day, 20-day and 55-day lows as key support levels.
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Enter short on break of 20-day or 55-day supports.
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Add to short position on every breach of fixed ATR multiple during trade.
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Take profit when price breaks back above 10-day or 20-day highs.
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Use ATR stop loss, exiting when triggered.
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Customizable ATR multiples for pyramiding and stop loss.
Advantages:
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Support breaks identify weakened reversals.
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Pyramiding accumulates size in trends for greater gains.
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ATR stop adapts to changing volatility.
Risks:
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Lagging support identification can miss ideal entries.
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Pyramiding rapidly compounds risks, requiring prudent position sizing.
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No limit on directional loss size, potentially large drawdowns.
In summary, this strategy pyramids shorts while using ATR trailing stops. With optimized parameters, it can capture strong moves incrementally but requires managing concentrated risks.
/*backtest
start: 2023-08-13 00:00:00
end: 2023-09-12 00:00:00
period: 5h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
//@version=4
// Copyright by Eugene v1.2 07/18/2019
// This is the short sell version of the strategy based on the famous turtle system.
// https://www.tradingblox.com/originalturtles/originalturtlerules.htm- 1