PZ Turtle Trading Indicator V2.0 MT5 – Full Review & Complete Guide
The PZ Turtle Trading Indicator V2.0 MT5 is a modern interpretation of one of the most powerful and historically successful trend-following systems ever created — the legendary Turtle Trading system. Developed from the teachings of Richard Dennis and William Eckhardt, Turtle Trading became famous for transforming ordinary individuals into million-dollar traders using a simple yet robust ruleset based on price breakouts, volatility, and strict money management. The PZ Turtle Trading Indicator brings this exact “Turtle Logic” into the MetaTrader 5 environment, allowing traders to follow the system visually, easily, and without needing to calculate anything manually.
In this detailed 1200-word guide, we will explore everything about the indicator: how it works, the entry systems (S1 and S2), stop-loss rules, pyramiding strategies, historical foundations, and how modern traders can use this tool to catch big trends in forex, gold, indices, and commodities. Whether you’re a beginner or an advanced trend trader, this indicator helps simplify execution and improves discipline.
Understanding the Core Concept of Turtle Trading
Unlike traditional trading philosophies such as “buy low and sell high,” Turtle Trading follows a completely opposite approach: buying breakouts of high prices and selling breakdowns of low prices. It is designed to capture long-lasting market trends that can produce extremely large returns.
The core belief behind Turtle Trading is simple:
“Markets trend long enough and far enough for systematic breakout traders to make consistent profits.”
The method uses N-day breakouts for entries and M-day highs/lows for exits, where N must be higher than M.
For example:
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Enter on a 20-day or 55-day breakout
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Exit on a 10-day or 20-day high/low
This structure allows the system to ride long-term trends without being shaken out by noise.
The PZ Turtle Trading Indicator automates all these calculations and displays breakout levels directly on the chart, making it extremely easy to follow the original rules.
The Turtle Trading Entry Strategy Explained
The Turtles used two versions of breakout entries, known as System One (S1) and System Two (S2). The PZ indicator includes both, offering a highly authentic representation of the original method.
✔ System One (S1) – The 20-Day Breakout Entry
S1 used a 20-day breakout for trade entries.
But it had a catch:
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If the last S1 breakout was profitable, the next 20-day breakout must be ignored.
This rule was created to filter out false signals and reduce whipsaws.
Buy Rules (S1):
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Buy when price breaks above the 20-day high, but only if the last S1 buy signal was a loss.
Sell Rules (S1):
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Sell short when price breaks below the 20-day low, but only if the last S1 short trade was a loss.
This filtering rule ensures that S1 only takes new trades when the previous breakout failed, increasing the probability of catching the next major move.
✔ System Two (S2) – The 55-Day Breakout Entry (Fail-Safe System)
This is considered the big trend catcher.
If traders skipped an S1 signal due to the filter, they risked missing a huge trend.
To prevent this, System Two was created as a backup.
Buy Rules (S2):
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Buy when price breaks above the 55-day high if not already in the market.
Sell Rules (S2):
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Sell short when price breaks below the 55-day low if not already in the market.
S2 ensures that traders never miss major long-term trends even if S1 filtered out the initial breakout.
Stop-Loss Using ATR(30) – The Turtle Volatility Unit
The Turtles used a special volatility measure called N, which is simply:
N = ATR(30) (Average True Range of last 30 days)
This value is used to size positions, place stop-losses, and determine trade pyramiding levels.
Stop-Loss Rule:
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Initial stop-loss = 2 × ATR(30)
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In Turtle terms: “Two volatility units.”
By using ATR, the system adapts to market conditions.
A fast, volatile market means a wider stop; a slow, quiet market means a tighter stop.
The PZ Turtle Trading Indicator displays these calculated ATR-based stop levels automatically.
Pyramiding – Adding into Winners for Maximum Gains
One of the Turtle system’s most powerful concepts is pyramiding, also called scaling into a winning trade.
The rules:
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Add up to 4 total positions into the trend.
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Each add-on must be spaced by 0.5 × ATR(30) (half a volatility unit).
This allows profits to grow exponentially while still managing risk with volatility-adjusted spacing.
The PZ indicator automatically highlights pyramid opportunities visually on the chart.
Exit Strategy – Capturing Profits Systematically
The exit rules are clean and reactive:
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Close long trades when price hits the 10-day low (for S1)
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Or the 20-day low (for S2)
Similarly:
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Close shorts when price hits the 10-day high or 20-day high
This allows the system to ride a trend until true weakness appears, not just noise.
The Origins – How Turtle Trading Became Legendary
The system originated from a debate between Richard Dennis and William Eckhardt.
Dennis believed that successful trading was a teachable skill; Eckhardt believed it required natural talent.
To prove his point, Dennis trained a group of 23 ordinary people — the “Turtles” — teaching them the exact breakout rules.
The results:
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The Turtles reportedly made over $175 million in under 5 years.
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Several Turtles went on to become world-famous traders.
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The system became one of the greatest trading experiments in history.
The PZ Turtle Trading Indicator is a direct implementation of these exact rules for MT5.
Why PZ Turtle Trading Indicator V2.0 MT5 Is So Effective
Here’s what makes this indicator genuinely useful:
1. Authentic Breakout Rules
The indicator includes 20-day and 55-day breakouts that perfectly match Turtle Trading logic.
2. Automatic ATR Calculation
No need to calculate N or volatility units manually — the indicator does it instantly.
3. Visual Stop-Loss and Take-Profit Levels
You can see the complete trade structure directly on the chart.
4. Perfect for Trend Markets
Works exceptionally well on:
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Forex major pairs
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Gold (XAUUSD)
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Oil
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Indices
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Commodities
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Crypto trends
5. Beginner Friendly
No manual calculations, no guesswork — just follow breakout signals.
6. Professional Risk Management
ATR-based stops keep you safe during high volatility.
7. Suitable for Swing & Position Traders
The indicator excels on higher timeframes:
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H1
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H4
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Daily
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Weekly
How Modern Traders Use the PZ Turtle Trading Indicator
Today’s markets still trend strongly — especially gold, indices, and forex majors.
Modern traders use this indicator to:
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Ride long-term trends
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Catch breakouts without hesitation
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Avoid emotional trading
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Manage risk with ATR-based stops
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Build positions in winning trades
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Stay disciplined with exit rules
Breakout systems continue to outperform in volatile markets, and Turtle Trading remains one of the most trusted methods for consistently catching large moves.
Conclusion – A Complete Trend-Following System in One Indicator
The PZ Turtle Trading Indicator V2.0 MT5 brings an iconic trading strategy to the modern world.
With breakout detection, volatility-based stops, pyramid logic, and clear visual guides, the indicator simplifies one of the most profitable systems ever created. Whether you are a trend-following enthusiast or a trader seeking discipline, this indicator offers a full systematic framework that removes guesswork and enhances clarity.
