Discussing the article: "Automating Trading Strategies in MQL5 (Part 50): Turtle Soup Liquidity Sweeps"

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Check out the new article: Automating Trading Strategies in MQL5 (Part 50): Turtle Soup Liquidity Sweeps.

We build an automated MQL5 program that trades Turtle Soup by fading false breakouts of the N-bar high and low. The article implements liquidity-sweep detection, confirmation closes back inside the level, sweep-depth and extreme-age filters, and an optional reversal-candle body check. It adds configurable dynamic or static stops, two take-profit modes, points-based trailing, and clear chart visuals, providing a ready baseline for backtesting and further customization.

The Turtle Soup strategy began as a fade of the classic Turtle breakout system. The Turtles bought new twenty-bar highs and sold new twenty-bar lows, expecting the breakout to run; Turtle Soup does the opposite, fading the breakout when it fails. The reasoning rests on where liquidity sits. A prominent N-bar high is an obvious place for buy stops to rest above it, and a prominent N-bar low is where sell stops rest below. We call the area above the high the buy-side liquidity (the high-liquidity area), and the area below the low the sell-side liquidity (the low-liquidity area). Price is often drawn to these pools, sweeping just beyond the level to trigger the resting orders, and then snapping back inside the range once that liquidity is taken. Turtle Soup trades that snap-back: when price sweeps above the N-bar high and then closes back below it, we fade the move and sell; when price sweeps below the N-bar low and closes back above it, we buy. A general setup looks as follows.

Author: Allan Munene Mutiiria