PZ Turtle Trading Indicator V2.0 – Breakout Trading System

PZ Turtle Trading Indicator V2.0 MT5 – Complete Review & Breakout Strategy Guide

The PZ Turtle Trading Indicator V2.0 MT5 is one of the most fascinating tools ever created for MetaTrader users, especially if you're someone who appreciates rule-based trading. Built on the iconic principles of Richard Dennis and Bill Eckhardt, this indicator brings the legendary Turtle Trading System straight onto your MT5 charts. If you’re tired of random indicators and messy market noise, this one stands out because it’s grounded in decades of proven market behavior, real experiments, and historically validated rules.

The Turtle Trading system itself is built on a simple but powerful premise — trade breakouts of major highs and lows, manage risk using volatility (ATR), and follow trends without hesitation. The PZ Turtle Trading Indicator preserves all these core ideas while making it far easier to apply them visually. From beginners to advanced traders, this tool provides structure, clarity, and disciplined entries. Let’s dive deeper into everything it offers.

Overview of the Turtle Trading Strategy

Before discussing the indicator, it’s important to understand what makes the Turtle Trading method so unique. In the early 1980s, legendary trader Richard Dennis made a bet with William Eckhardt. Dennis believed traders could be trained, while Eckhardt insisted great traders were born. To settle the debate, Dennis picked a group of ordinary people — teachers, accountants, game designers — trained them for two weeks, and gave them capital to trade.

These “Turtles” used a strictly mechanical breakout system. The result?
They reportedly earned over $175 million in just five years.

The rules were simple:

Buy when price breaks above the N-day high.
Sell when price breaks below the N-day low.
Exit when M-day levels are breached (M < N).
Use ATR for stop-loss & pyramiding.

The PZ Turtle Trading Indicator V2.0 MT5 carefully follows these rules and visualizes everything directly on your chart.

How PZ Turtle Trading Indicator V2.0 Works

This indicator is designed to mimic the exact logic followed by the Turtles. It identifies breakout levels, exit points, volatility stops, and even provides clarity on trend direction.

Here’s a breakdown of the rules the indicator uses:

1. System One (S1) – 20-Day Breakouts

The Turtles’ initial entry method was based on 20-day highs and lows. But there was a catch.
They would ignore a breakout signal if the previous signal was profitable. This was designed to avoid entering too late into a trend.

However, ignoring signals also created a risk — what if the trend had just begun and they missed it entirely?

2. System Two (S2) – 55-Day Breakouts

To solve this problem, Dennis and Eckhardt added a fail-safe:
If S1 was skipped and the market kept trending, the trader could still enter at the 55-day breakout.

PZ Turtle Trading Indicator applies this rule perfectly.
If the last S1 signal was skipped or profitable, S2 becomes your next valid entry.

3. ATR-Based Stop Loss (N-Value)

The Turtles used ATR(30) to measure volatility.
Their stop loss = 2 × ATR(30) (two volatility units).

This means stops adapt to market behavior. In volatile markets, stops widen. In slow markets, stops tighten.

The indicator calculates this automatically.

4. Pyramiding Up to 4 Positions

One of the most powerful features:
The Turtles added positions as trends moved in their favor.

Their rule:
Add a new position every 0.5 ATR (half-volatility unit).

The indicator marks these levels on the chart, helping traders add positions safely.

Why Traders Use This Indicator

The main reason the PZ Turtle Trading Indicator is so popular is because it transforms a historically proven system into a visually easy, rule-based tool.

You get:

Clear breakout entry signals
Stop-loss placement based on ATR
Trend-following logic without emotion
Automatic System 1 & System 2 detection
Pyramiding guidance
Breakout levels marked on chart
Structure & discipline

Several traders find this indicator extremely helpful because:

It avoids overtrading
It teaches discipline
It keeps you inside long trends
It eliminates second-guessing
It works on forex, gold, indices, crypto, commodities

Breakdown of Entry Rules Within the Indicator

System One (20-Day Breakout)

Buy when price breaks above the previous 20-day high
Sell when price breaks below the 20-day low
Only valid if last S1 signal was a loss

System Two (55-Day Breakout)

Buy the 55-day high breakout if flat
Sell the 55-day low breakout if flat
Acts as a safety net if S1 signals were filtered

Risk Management (ATR-Based)

Initial stop:
Stop = Entry ± (2 × ATR(30))
Add positions every 0.5 × ATR
Maximum 4 positions

This system has been backtested for decades and continues to work on trend-based instruments.

Strengths of the Indicator

Emotion-free trading rules
Everything is mechanical. No guessing.
Perfect for trend-followers
This captures long-term trends beautifully.
Works on multiple markets
Forex, Gold, NAS100, Oil, BTC, etc.
Clear risk management
ATR-based stops are logical and adaptive.
Historically proven
This is not a fantasy system; it made millions.

Limitations to Keep in Mind

Works best in trending markets
Difficult during choppy or sideways ranges
Requires patience — trends sometimes take time
Pyramiding requires discipline
Not a scalping tool — this is a long-term system

But these are natural characteristics of any trend-following breakout strategy.

Who Should Use the PZ Turtle Trading Indicator?

This indicator is perfect for:

Trend-followers
Swing traders
Commodity traders
Forex traders
Traders seeking mechanical rules
Those who prefer higher-timeframe trading

H1, H4, and Daily charts work beautifully with this method.

Conclusion

The PZ Turtle Trading Indicator V2.0 MT5 is one of the most faithful recreations of the Turtle system ever built for MetaTrader. If you want a strategy that has stood the test of time and generated real millions in its origin story, this is one of the strongest breakout-based indicators available today.