According to the original Turtle Rules, long positions were stopped out if price fell 2 ATR from the entry price. Conversely, short positions were stopped out if the price rose 2 ATR from the entry price.

Unlike the Exit Breakout based stop, which moves up or down with the X-day high or low, the stop defined by Stop in ATR is a “hard” stop that is fixed above or below the entry price upon entry. Once set, it does not vary throughout the course of the trade

Note that trades are liquidated when price hits either the Exit Breakout, Entry Breakout for the

opposite direction, or the Stop in ATR, whichever is closest to the price at the time.

Exit Breakout (days)

Trades in progress are exited when the price hits the high or the low of the preceding X-days.

This concept is the identical to Entry Breakout, but the logic is reversed: Long trades are exited when price hits the X-day low, and short trades are exited when the price hits the X-day low.

The Exit Breakout moves up (or down) with price. It protects against adverse price excursions, and also serves as a trailing stop that acts to lock in a profit when the trend reverses.

Note that trades are liquidated when price hits either the Exit Breakout, Entry Breakout for the

opposite direction, or the Stop in ATR, whichever is closest to the price at the time.

These options can be enabled or disabled with the Hold Initial Stops and Use Reversal Exit parameters. If the initial stop is held, then the initial stop price will be used to exit during the trade. If using the reversal exit, then the trade will be exited if the price hits the entry breakout for the opposite direction.

Exit Offset (ATR)

If set to zero, this parameter has no effect. If Exit Offset in ATR is set to 1.0, a long position isn’t exited until price hits the normal breakout price, minus 1.0 ATR. Likewise, a short position won’t be exited until the price hits the normal breakout price, plus 1.0 ATR. Either a positive or negative value can be specified for this parameter. A positive value effectively delays exit until the specified point after the breakout threshold chosen; a negative value would exit before the

breakout threshold chosen.

ATR (days)

Defined the number of days for the ATR calculation. This is an exponential moving average of

the True Range. 39 represents a 20 day Wilder ATR.

MACD Long Average (days)

This is the number of days for the long moving average portion of the MACD indicator.

MACD Short Average (days)

This is the number of days for the short moving average portion of the MACD indicator.

The MACD itself is the Short Moving Average minus the Long Moving Average.

The system will allow Long trades when the MACD is greater than zero and allow Short trades when the MACD is less than zero.