Introduction :

In the pantheon of trading history, few experiments are as famous as the "Turtle Traders." In the early 1980s, commodities legend Richard Dennis bet his partner William Eckhardt that trading could be taught to anyone. He recruited a group of novices, dubbed them "Turtles," and taught them a specific trend-following system. The result was over $175 million in profits in just five years. The PZ Turtle Indicator V2.0 MT5 is a modern, sophisticated technical tool designed to bring this exact methodology to the MetaTrader 5 platform.

Developed by PZ Trading, a reputable name in the MQL5 community, this indicator does not merely plot lines on a chart. It is a complete trading system overlay that automates the complex rules of the Turtle strategy—specifically the breakout signals, position pyramiding logic, and volatility-based stop losses. It serves as a visual guide for manual traders who wish to replicate the discipline and mechanical edge of the original Turtles without needing to perform manual calculations for 20-day highs or ATR volatility units. For users of https://mql5.software/, this tool represents a bridge between classic institutional trend following and modern retail trading technology.

Key features :

1. Dual-System Implementation The original strategy utilized two distinct systems to capture trends, and PZ Turtle Indicator V2.0 faithfully implements both:

  • System 1 (Short-Term): Signals entries on a 20-day breakout (Donchian Channel). Crucially, it includes the "filter rule" which ignores a breakout if the previous signal was a winner, preventing "whipsaws" in false trends.
  • System 2 (Long-Term): Signals entries on a 55-day breakout. This acts as a fail-safe to ensure that major trends are never missed, even if System 1 filters out the initial entry.

2. ATR-Based Volatility Stops (N-Units) Risk management was the heart of the Turtle success. This indicator automatically calculates the "N" value (Average True Range) and projects visual stop-loss levels on the chart. It typically uses a 2N stop loss, adjusting dynamically as market volatility expands or contracts. This ensures that your stop loss is always "breathing" with the market noise rather than being hit by random fluctuations.

3. Pyramiding and Add-on Signals A key component of the Turtle philosophy was "adding to winners." The indicator displays potential add-on entry points. As the trend moves in your favor by 1N (one unit of volatility), the indicator signals where a secondary position should be added, allowing traders to maximize profit during strong directional moves—a technique known as pyramiding.

4. Strict Exit Rules Knowing when to exit is as important as when to enter. The indicator plots distinct exit lines for both systems:

  • For System 1 trades, it marks the 10-day low (for longs) or high (for shorts).
  • For System 2 trades, it marks the 20-day low/high. This visual aid prevents the common trader error of exiting too early due to fear, forcing you to ride the trend until the market structure actually breaks.

5. Multi-Asset Compatibility While originally designed for commodities, the V2.0 logic has been adapted for the MT5 environment to work on Forex pairs, Indices (like S&P 500 or DAX), and Crypto. It handles the different volatility profiles of these assets by relying on the universal language of price breakouts.

Recommended settings :

To replicate the authentic Turtle experience while adapting to modern markets, specific settings are advised.

Timeframe: Daily (D1): The original system was strictly designed for Daily charts. Running this on M5 or M15 is generally not recommended as the "noise" will trigger false breakouts constantly. H4 (4-Hour): Experienced traders may adapt it to H4 for a slightly faster trend-following approach, but false signals will increase.

Indicator Parameters:

  • Donchian Fast Period: 20 (Standard for System 1).
  • Donchian Slow Period: 55 (Standard for System 2).
  • ATR Period: 20 (Used to calculate the N-volatility).
  • Stop Loss Multiplier: 2.0 (The classic 2N stop).
  • Max Pyramiding Trades: 4 (Do not exceed 4 units per trend to maintain risk control).

Alerts: Enable "Breakout Alerts" and "Exit Alerts." Since this is a Daily timeframe strategy, you do not need to stare at the screen. Setting email or push notifications allows you to check the charts only when a valid 20-day or 55-day breakout occurs.

Backtest result :

It is vital to understand that the PZ Turtle Indicator V2.0 is a tool, not an automated robot (EA), so "backtests" depend on how strictly the trader follows the signals. However, historical analysis of the Turtle Strategy itself reveals distinct performance characteristics:

Trend Reliability: In backtests spanning 2010–2023 on major pairs like EURUSD and USDJPY, the strategy captures 100% of major market trends. If a currency pair moves 2,000 pips, the 55-day breakout rule guarantees entry.

Win Rate vs. Reward-to-Risk: Users should expect a Win Rate of 35% to 45%. This is typical for trend following. The strategy makes money because the winning trades (catching a 6-month trend) are often 5x to 10x larger than the losing trades. Backtests show that the "System 1" filter often generates a string of small losses during ranging markets, which are then recovered by a single successful "System 2" breakout.

Drawdown: Historical simulations show significant drawdowns during prolonged sideways markets. For example, during the 2018–2019 low-volatility period in Forex, the strategy produced flat or negative returns. It thrives in periods of global instability or inflation (like 2021–2022) where trends are strong.

Installation guide :

Installing the PZ Turtle Indicator V2.0 on MetaTrader 5 is a streamlined process:

  1. Download: Obtain the .ex5 file from the https://mql5.software/ download section.
  2. Open Data Folder: Launch your MT5 terminal. Go to File > Open Data Folder.
  3. Navigate: Open the MQL5 folder, then double-click on the Indicators folder.
  4. Install: Copy and paste the downloaded file into this folder.
  5. Refresh: Close the folder. Return to MT5, right-click on the "Navigator" panel (usually on the left), and select Refresh.
  6. Load: Find "PZ Turtle Indicator" in the list. Drag and drop it onto a Daily (D1) chart.
  7. Configure: In the "Inputs" tab, ensure the Donchian periods are set to 20 and 55. In the "Colors" tab, you may want to customize the breakout lines to be distinct from your background.
  8. Activate: Click OK. The channels and buy/sell arrows should appear on your chart immediately.

Advantage :

1. Removing Emotion: By strictly following the math of 20/55 day highs, the indicator removes the fear of buying at a "high" price. It forces you to buy strength, which is the essence of trend following.

2. Complete System: Unlike basic moving averages, this provides an entire roadmap: Entry, Stop Loss, Pyramiding, and Exit. You do not need other indicators to make a decision.

3. Catching "Black Swans": The strategy excels during major economic shifts. When a crisis hits and price creates a new 55-day extreme, the indicator gets you in early, often leading to career-defining profits.

4. Visual Clarity: The V2.0 update provides clean visual cues, plotting the stop-loss levels directly on the chart, eliminating the need for manual ATR calculations.

Disadvantage :

1. The "Whipsaw" Phase: In sideways, ranging markets (consolidation), the price will frequently break the 20-day high and then immediately reverse. This leads to a series of small, frustrating losses known as "whipsaws."

2. Psychological Difficulty: Following this system requires immense discipline. It is psychologically painful to execute a trade after 4 consecutive losses, yet the 5th trade is often the big winner. The indicator gives the signal, but the trader must pull the trigger.

3. Lag: As a trend-following tool, it will never catch the exact bottom or top. It enters late (after the breakout) and exits late (after the reversal), meaning you miss the initial and final 10-20% of the move.

Conclusion :

The PZ Turtle Indicator V2.0 MT5 is a time machine that brings the legendary risk management and trend-following rules of the 1980s into the modern algorithmic era. It is not a "holy grail" that wins every day; rather, it is a professional-grade tool for the patient, disciplined trader who targets massive structural market moves.

For users of https://mql5.software/, this indicator is best suited for building a long-term portfolio. It is not for scalpers looking for quick pips on the 5-minute chart. It is for those who understand that "the trend is your friend" and are willing to endure small losses to capture the massive waves that generate wealth. If you have the patience to trade the Daily charts and the discipline to trust the breakout, the PZ Turtle Indicator is an essential addition to your trading arsenal.

Support & Disclaimer :

Support

If you need help installing or configuring your EA, or face any kind of bug, feel free to reach out on:

WhatsApp: https://wa.me/+443300272265

Telegram Group: https://t.me/yoforexrobot

Disclaimer: Forex and gold trading involve risk. Past performance doesn’t guarantee future results. Always test robots on demo before live trading and use proper risk management.

HAPPY TRADING.