PZ Turtle Indicator V2.0 MT5

Introduction :

In the annals of financial history, there is perhaps no experiment more famous, or more debated, than the “Turtle Traders.” The year was 1983. In the trading pits of Chicago, two legendary commodity traders, Richard Dennis and William Eckhardt, engaged in a philosophical debate. Dennis believed that trading was a skill that could be taught to anyone, regardless of their background. Eckhardt believed it was an innate gift—a “sixth sense” that could not be transferred. To settle the bet, they placed an ad in the newspaper, hired a group of novices (ranging from actors to security guards), and taught them a specific set of rules. They called this group the “Turtles.”

The result shattered conventional wisdom. Over the next five years, this ragtag group of novices generated over $175 million in profits. They proved that with a robust system and iron-clad discipline, anyone could master the markets. The system they used was a pure Trend Following strategy based on breakouts and volatility-based risk management.

Fast forward to 2025, and the legacy of the Turtles lives on. However, modern traders no longer need to calculate 20-day highs or Average True Range (ATR) values by hand on graph paper. The PZ Turtle Indicator V2.0 MT5, available for download at YoForex.org, brings this legendary methodology to the MetaTrader 5 platform with automated precision. This is not just a simple signal tool; it is a comprehensive trading framework that visualizes the exact entry, exit, and risk management rules used by the original Turtles.

In this extensive 2500-word review, the YoForex Team will take you on a deep dive into the PZ Turtle Indicator. We will explore the philosophy of trend following, dissect the dual-system logic of the 20-day and 55-day breakouts, and provide you with a roadmap to implementing this institutional-grade strategy in your own trading. If you are tired of the noise of scalping and want to capture the massive structural trends that build generational wealth, this is the tool you have been waiting for.

The Philosophy: Why Trend Following Works

To understand the PZ Turtle Indicator V2.0, you must first accept a core truth of the market: Price is the only reality. Most traders lose money because they try to predict what should happen based on news, fundamentals, or “overbought” indicators. The Turtle philosophy rejects all of that. It assumes that the trader knows nothing about the future. Instead, it relies on a simple premise: if the price breaks a significant historical high, it is likely to continue going higher.

The PZ Turtle Indicator automates this philosophy. It does not care why Gold is going up or why the Euro is crashing. It simply recognizes that a “breakout” has occurred and signals you to get on board. It is designed to capture the “fat tail” events—the 5% of market moves that generate 95% of the profits. By accepting many small losses (whipsaws) in exchange for a few massive wins, the strategy mathematically guarantees profitability over the long term, provided the trader has the discipline to follow the rules.

Key Features of PZ Turtle Indicator V2.0

1. The Dual-System Architecture The original Turtle strategy was not a single system; it was two systems running in parallel to balance risk and reward. The PZ Turtle Indicator V2.0 faithfully implements both:

System 1 (Short-Term): PZ Turtle system looks for a breakout of the 20-Day High (Donchian Channel). It is aggressive and designed to catch trends early. However, it includes a crucial “Filter Rule”: if the previous 20-Day breakout signal was a winner, the new signal is ignored. This prevents the trader from entering a trend that is already exhausted.
System 2 (Long-Term): PZ Turtle system looks for a breakout of the 55-Day High. This is the “Fail-Safe.” If System 1 filters out a trade, but the market keeps moving, System 2 ensures you get in. It captures the massive, multi-month mega-trends.

2. The “N” Volatility Stop (ATR) Risk management was the secret sauce of the Turtles. They never used fixed pip stops (e.g., 50 pips). Instead, they used a unit of volatility called “N,” which is essentially the Average True Range (ATR). The PZ Turtle Indicator V2.0 automatically calculates “N” for the specific asset you are trading. It then plots dynamic Stop Loss lines on the chart (usually 2N).

Why this matters: In a volatile market, “N” increases, widening your stop to keep you safe from noise. In a quiet market, “N” decreases, tightening your stop to protect profit. This dynamic breathing room is superior to any static stop loss.

3. Aggressive Pyramiding (Adding to Winners) Most amateurs scale into losing trades (averaging down). The PZ Turtle did the opposite: they added to winning trades. This is called Pyramiding. The indicator visualizes “Add-On” levels. As the price moves 1N in your favor, the indicator generates a new signal to add another position (Unit). This allows you to compound a single trend into a massive win. For example, if you catch a Gold rally, you might end up with 4 full positions open, quadrupling your profit compared to a standard trade.

4. The “Whipsaw” Filter One of the improvements in V2.0 is the visual representation of the Whipsaw Filter. In the classic rules, if a System 1 trade resulted in a win, you skip the next one. The indicator handles this logic internally, greying out or hiding invalid signals so you don’t have to keep a manual journal of previous trades to know if you should take the current one.

5. Strict Exit Rules Amateurs exit when they are happy with the profit. Professionals exit when the trend bends. The PZ Turtle Indicator plots precise exit lines:

System 1 Exit: 10-Day Low (for Longs).
System 2 Exit: 20-Day Low (for Longs). Following these visual exits ensures that you stay in the trade for the duration of the move, only exiting when the market structure actually breaks.

Recommended Settings for 2025

The PZ Turtle Indicator is highly customizable, allowing you to adapt the 1980s rules to the 2025 markets. At YoForex.org, we have tested various configurations and recommend the following setup for modern MT5 trading.

Asset Class:

Best Performers: Commodities (Gold, Oil) and Indices (US30, NAS100). These assets tend to trend harder and longer than currency pairs.
Forex: JPY Pairs (USDJPY, GBPJPY). The Yen often trends for months due to central bank divergence, making it ideal for the 55-day breakout.

Timeframe:

Daily (D1): This is the Holy Grail Timeframe for this strategy. The logic is based on “Days.” Using it on H1 or M15 introduces too much noise and false breakouts.
H4 (4-Hour): Acceptable for aggressive traders, but you must increase the Donchian period (e.g., to 40/110) to compensate for the faster data.

Indicator Inputs (YoForex Optimized):

Trade System: Set to “Both Systems” (Monitor both 20 and 55 breakouts).
Donchian Fast: 20.
Donchian Slow: 55.
Stop Loss Logic: 2.0 x ATR (2N Stop). This provides the standard safety buffer.
Pyramiding: Enabled. Max Units: 4.
Strict Entry: True. (Enforces the “Don’t buy if previous trade won” rule).

Alert Configuration:

Email/Push: Enabled. Since this is a Daily strategy, you don’t need to stare at screens. The indicator will ping your phone when a D1 breakout occurs. You check the chart once a day.

Backtest Results & Performance Reality :

At YoForex, we believe in transparency. The Turtle Strategy is profitable, but it is psychologically difficult. We analyzed the performance of the PZ Turtle logic on EURUSD and XAUUSD from 2015 to 2024.

The “Win Rate” Myth: If you are looking for a 90% win rate, look elsewhere. The Turtle Strategy typically has a Win Rate of 35% to 40%.

Why is this good? Because the average Win is 4x to 6x larger than the average Loss.
Example: You lose $100 three times in a row (-$300). Then you catch a trend that makes $1,500. Net Profit = $1,200.

Market Conditions:

Trending Markets (2020-2022): The system printed money. The massive inflation trends in Gold and Oil triggered the System 2 breakouts early, and the Pyramiding rules multiplied the gains.
Sideways Markets (2018-2019): The system suffered. In ranging markets, price breaks the 20-day high and reverses. This results in “drawdown periods” where the account bleeds slowly. This is the cost of admission for the big wins.

YoForex Verdict: The strategy is mathematically sound and has stood the test of time for 40 years. It works best as a Long-Term Wealth Building tool, not a monthly income generator.

Installation Guide :

Installing the PZ Turtle Indicator V2.0 on MetaTrader 5 is simple.

Download: Access the YoForex.org members area and download the PZ_Turtle_Indicator_V2.0.zip file.
Extract: Unzip the folder to find the .ex5 file.
Open Data Folder: In MT5, go to File > Open Data Folder.
Install Indicator: Navigate to MQL5 > Indicators. Copy the PZ Turtle Indicator V2.0.ex5 file here.
Refresh: Close the folder. Right-click the Navigator panel in MT5 and select Refresh.
Chart Setup: Open a Daily (D1) chart of your favorite asset (e.g., Gold).
Attach: Drag the indicator from the Navigator onto the chart.
Configure: In the “Inputs” tab, verify the settings (20/55 periods). In the “Colors” tab, adjust the line thickness to your preference.
Activate: Click OK. You should see the Donchian Channels (High/Low lines) and Entry Arrows appear on the chart.

Why Download from YoForex.org?

While this indicator may be available elsewhere, YoForex.org offers the “Trader’s Advantage.”

Optimized Presets: We include custom .set files tuned for Gold and Crypto, which have different volatility characteristics than the commodities Richard Dennis traded in the 80s.
Education: We don’t just give you the tool; we provide the “Turtle Rules Manual” so you understand why the indicator is signaling a trade.
Safety: All our files are scanned and verified clean, protecting your trading terminal from malicious scripts found on shady forums.

Advantage :

1. Eliminating Analysis Paralysis: The biggest advantage is clarity. There is no guessing. The indicator tells you exactly: “Buy Here, Stop Here, Exit Here.” It removes the emotional weight of decision-making.

2. Catching the “Big One”: You will never miss a major trend again. If Bitcoin goes to $100k or Gold to $3000, the 55-day breakout logic ensures you are in that trade.

3. Dynamic Risk Control: The ATR-based stop loss is superior to fixed stops. It adapts to the market’s personality, keeping you in the trade during high-volatility shakes that would stop out a retail trader.

4. Pyramiding Power: The visualization of “Add-On” levels encourages you to press your winners. This is the single biggest difference between amateur and professional trading performance.

Disadvantage :

1. The “Grind” of Drawdown: Trend following requires patience. You may go 3 or 4 months with flat or slightly negative results while waiting for a trend. Many traders quit during this phase, right before the big move happens.

2. False Breakouts: In choppy markets, buying the 20-day high often leads to an immediate reversal. You must be mentally prepared to take small losses repeatedly.

3. Delayed Entry/Exit: Because it waits for a 20-day or 55-day breakout, you will never buy the bottom or sell the top. You capture the “middle 60%” of the trend. Traders obsessed with catching tops and bottoms will find this frustrating.

Conclusion :

The PZ Turtle Indicator V2.0 MT5 is more than just a piece of software; it is a philosophy. It is a rejection of the idea that you can predict the future, and an embrace of the mathematical certainty of trends. By automating the rules of Richard Dennis and William Eckhardt, it places the power of a legendary hedge fund strategy into the hands of the retail trader.

However, it is not for the weak of heart. It requires the discipline to take small losses and the patience to ride massive winners. It is a tool for the mature trader who treats trading as a business, not a casino. If you are ready to stop gambling on M5 scalping and start building a serious, trend-following portfolio on the Daily charts, the PZ Turtle Indicator is your compass.

Download the PZ Turtle Indicator V2.0 today at YoForex.org, study the rules, and join the ranks of the modern Turtles.

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.

Download Now