Turtle Trading

Turtle Trading software for systematic trend following

Turtle Desk is software for systematic trend following based on the Turtle Trading method. It applies mechanical breakout entries, volatility-based position sizing, pyramiding, and exit rules to end-of-day market data, and demonstrates the method through a public $100,000 paper Turtle Fund.

It follows fixed rules. It does not predict prices, pick stocks, or place brokerage trades.

Who it is for

Turtle Desk is built for self-directed traders who want a rules-based reference for trend following: people studying or running the Turtle system, discretionary traders who want a mechanical second opinion, and anyone learning breakout entries, volatility sizing, and pyramiding. It is not an intraday terminal, an options tool, a prediction engine, or a source of AI stock picks.

The two systems

Turtle Desk implements the two breakout systems associated with the original Turtle method. Both use a protective stop placed 2N below the entry (see N).

The chart supports both systems so you can compare a faster and a slower trend response on the same instrument. The Turtle Fund trades System 1 only.

N and position sizing

N is a measure of volatility — the 20-day average true range of the instrument. It answers a simple question: how much does this thing move in a normal day? Because a volatile instrument needs a smaller position than a calm one to carry the same risk, N drives both the stop distance and the position size.

Each unit is sized so that a move to the stop risks a fixed slice of account equity. In plain terms:

unit size = (account equity × risk %) ÷ (2 × N), rounded down to whole shares.

The stop sits 2N below entry, so one unit risks roughly the chosen percentage of equity if the trade fails. You set the equity and risk percentage; the rules do the rest.

Pyramiding and units

A single entry is one unit. As a trend moves in your favour, the Turtle method adds units at fixed volatility intervals — this is pyramiding, or adding to strength. Turtle Desk models up to four units per instrument.

When all four are filled, a position is described as 4/4 units: fully sized, with no further adds. The point is not to average down into a loser but to commit more capital only to trends that keep proving themselves, while every unit still carries the same volatility-based stop.

Exits

Exits are mechanical, not discretionary price targets. A System 1 position exits when price breaks the 10-day low; a System 2 position exits on the 20-day low. There is also the 2N protective stop. Turtle Desk never tries to sell the top — it exits when the rule says the trend has ended, which means it accepts giving back some of a move in exchange for staying in long trends.

The public Turtle Fund

The Turtle Fund is a transparent paper portfolio that runs the rules under real portfolio constraints, so you can see how the method behaves over time rather than just in theory. It is governed by a public, versioned Fund Charter, and its decisions and history are published.

Coverage

The Fund and scanner use a curated 50-instrument universe of ETFs and leading U.S. stocks. Individual ticker analysis can also cover supported stocks outside the Fund universe. The universe is deliberately curated for liquidity and clean end-of-day data rather than trying to cover every tradable security.

How it differs from screeners and charting platforms

A stock screener finds symbols that match a filter. A charting platform draws indicators. Turtle Desk models the full operational state of a single trend-following system: the entry, the volatility, the unit size, how many units should currently be held, the adds, and the exit — the sequence entry → add → add → exit → re-entry. It is narrower than a general charting or backtesting platform, but deeper on the specific mechanics of a Turtle-style system.

An honest note on the method

The original Turtles traded futures, with the margin and portfolio mechanics that come with them. Turtle Desk is a modern cash-equity and ETF adaptation of Turtle-style systematic trend following — not a bit-for-bit reproduction of every original portfolio mechanic. Trading in cash introduces capital constraints (for example, a fully-financed position the Fund cannot add to) that a futures account would handle differently.

Frequently asked questions

What is Turtle Desk?

Software for systematic trend following based on the Turtle Trading method. It applies mechanical breakout entries, N-based position sizing, pyramiding, and exit rules to end-of-day market data, and demonstrates them through a public paper Turtle Fund.

What is Turtle Trading?

Turtle Trading is a rules-based trend-following method that enters on price breakouts, sizes positions by volatility, adds to winning trends, and exits mechanically. It became well known as a demonstration that a disciplined, teachable set of rules — not prediction — can be traded consistently.

What are Turtle System 1 and System 2?

They are the two breakout systems. System 1 enters on a 20-day high and exits on the 10-day low; System 2 enters on a 55-day high and exits on the 20-day low. Both place a protective stop 2N below entry. System 1 responds faster; System 2 targets slower, larger trends. Turtle Desk’s chart supports both; the Fund runs System 1 only.

What is N?

N is a volatility measure — the 20-day average true range of the instrument. It represents a typical day’s movement and is used to set both the stop distance (2N) and the position size.

How does Turtle Desk calculate position size?

Each unit is sized as (account equity × risk %) ÷ (2 × N), rounded down to whole shares. Because the stop sits 2N below entry, one unit risks about the chosen percentage of equity if the trade fails. You supply the equity and risk percentage.

How does pyramiding work, and what does “4/4 units” mean?

Pyramiding means adding units as a trend strengthens, at fixed volatility intervals — adding to strength, not averaging into losers. Turtle Desk models up to four units per instrument. “4/4 units” means a position is fully sized with no further adds remaining; every unit still carries the same 2N stop.

How are exits calculated?

Exits are mechanical. A System 1 position exits on a break of the 10-day low, System 2 on the 20-day low, with a 2N protective stop throughout. There are no discretionary price targets, so the system does not attempt to sell the exact top.

Does Turtle Desk predict prices or try to catch bottoms?

No. It does not forecast prices, generate AI stock picks, or try to buy bottoms. Trend following enters after strength is confirmed by a breakout and exits when the trend rule breaks — it deliberately gives up the exact bottom and top.

Is Turtle Desk a trading bot, and does it execute trades?

No. Turtle Desk is a rules engine and reference tool. It does not connect to a broker, place orders, or manage anyone’s account. It shows what the system says; any real-world trading decision is yours.

Does Turtle Desk use leverage?

The public Turtle Fund is cash-only and uses no leverage. The method’s risk comes from position sizing and pyramiding, not from borrowed money.

What is the Turtle Fund, and is it real money?

The Turtle Fund is a public paper portfolio that runs the rules under real portfolio constraints. It starts from $100,000 in paper capital. It is not real money: it holds no client assets, takes no investor capital, and executes no brokerage trades. Results are hypothetical.

How does the Turtle Fund handle limited cash and concentrated positions?

Because it is cash-only, the Fund can only add units it can actually finance; a signal is not automatically a trade. Over time, repeated adds to persistent winners can make a few positions large — concentration is a natural outcome of trend following, and the Fund records it transparently rather than smoothing it away.

Which instruments does Turtle Desk cover, and can I analyze other tickers?

The Fund and scanner use a curated 50-instrument universe of ETFs and leading U.S. stocks. Individual ticker analysis can also cover supported stocks outside the Fund universe. The universe is curated for liquidity and clean end-of-day data rather than exhaustiveness.

How is Turtle Desk different from a stock screener or TradingView?

A screener returns symbols matching a filter, and a charting platform draws indicators you interpret yourself. Turtle Desk models the full state of one trend-following system — entry, N, unit size, units held, adds, and exit — as a single coherent picture. It is narrower than a general charting or backtesting platform, but deeper on Turtle-style mechanics.

Can Turtle Desk be used for backtesting?

Turtle Desk is not a general backtesting laboratory. Its historical evidence comes from showing past entries, adds, and exits on charts and from the public Turtle Fund’s recorded history, rather than from configurable strategy backtests.

Is Turtle Desk investment advice?

No. Turtle Desk is an informational and educational tool, not personalized investment advice. Trading involves substantial risk of loss, and past or simulated performance does not guarantee future results.

Turtle Desk is provided for informational and educational purposes only and is not investment advice. Not affiliated with Richard Dennis, William Eckhardt, or the original Turtle traders. The Turtle Fund is a paper portfolio; results are hypothetical and may differ materially from live execution. Past performance does not guarantee future results. Trading involves substantial risk of loss.