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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Eric P who wrote (5524)	11/21/1999 12:07:00 AM
From: -	Read Replies (1) of 18137

re: Turtle Soup. Close, but not quite: The Turtles were trained to buy 60-day breakouts. Most breakouts failed (but the Turtles were still hugely successful, because of their money-management and trend-following rules). In their book "Street Smarts", Linda Raschke and Larry Conners described a clever, scalping-oriented fade on that classic trading methodology which they playfully dubbed "Turtle Soup". In otherwords, sell-stop the new high in anticipation of a failure. The best time to do this is right as an issue tries to trade through a clearly-defined prior overhead resistance level (e.g. a well-formed prior top, such as a Trader Vic 2B double-top formation, per www.intelligentspeculator.com). You could also apply it to a straight 60-day high, but the odds of getting the desired failure are much lower; however double-tops fail the retest quite frequently. So, the Turtle Soup name was intended to be a bit of a fun "shot" at the renowned Turtle traders. Linda Rascke tends to do that, her latest trade being touted in advertisements for the Raschke-Cook $3k weekend seminar is dubbed the "short skirt" trade. Should be a winner too! :) -Steve

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