Systematic Exits

Cut losers fast. Let winners run — but only until the trend shows weakness.
No hope. No holding. Just rules.

The Turtle Exit Rules

Exit longs on 10-day low. Exit shorts on 10-day high.
Long Exit Close below lowest low of last 10 days
Short Exit Close above highest high of last 10 days
Alternative ATR trailing stop (2–3× ATR below high)
Key Principle No discretion — price decides when you're wrong

Exits are mechanical. You don't "think" about holding — you follow the signal.

How Exits Protect in Real Markets

Imagine you're long a stock at $100 (50 shares, $500 risk).
Here's how Turtle exits cut losses or lock profits:

1

Early pullback – price dips but holds above 10-day low

No exit. You stay in. Small shakeout — trend still intact.

2

Strong trend continues – new highs, trailing low moves up

You hold through volatility. 10-day low trails behind price.

3

Trend finally breaks – close below 10-day low

Exit triggered mechanically. Profit secured or loss limited.

Exits aren't about being "right" forever — they're about cutting losers fast and riding winners until the trend dies.

Visual Example: Trend → Pullbacks → Exit

EXIT Price Line 10-day Low Trail Exit Signal
Exits are ruthless — they protect capital by getting out when the trend dies.
No emotion. Just the rule.

Cut Losers Fast

Small losses are the price of staying in the game for big wins.

Let Winners Run

Only exit when price proves the trend is over — not when you "feel" like it.

Mechanical Discipline

No discretion. The 10-day low/high decides — not hope or fear.

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