ICT Turtle Soup: Smart Stop Hunt Profits Now

In this guide, you’ll learn how the turtle soup strategy works, why it’s effective, and how to use it. Both beginners and advanced traders can benefit from this method. Get ready to exploit market inefficiencies!

Table of Contents

Understanding the ICT Turtle Soup Strategy 🏆

The Turtle Soup Strategy is a contrarian method that capitalizes on stop hunts. Large institutional traders manipulate price action to trigger retail stop losses before reversing the trend.

Why the Name ‘Turtle Soup’?

It comes from a counter-strategy to the famous “Turtle Trading System.” Turtle traders followed breakouts, but smart money often engineered false ones. The Turtle Soup Strategy flips this concept, letting traders profit from these liquidity grabs.

How to Spot a Turtle Soup Trade Setup 🔍

A valid Turtle Soup setup follows a structured approach. Here’s how to spot one:

1. Identify a Previous Swing High or Low

Find a clear swing high or low where stop-loss orders are likely placed.
These levels often appear as resistance or support zones.

2. Wait for a Liquidity Raid

The price must breach a previous high (for a short trade) or low (for a long trade).
This liquidity grab should happen quickly, forming a sharp wick or false breakout.

3. Look for a Rejection Candle

A pin bar, engulfing candle, or strong wick rejection signals reversal.

4. Confirm with ICT Concepts

Market structure shift: The price must break back into the previous range.
Fair Value Gap (FVG) or Order Block (OB) presence: Adds extra confluence.

5. Execute the Trade with Smart Risk Management

Enter when price confirms reversal.
Set a stop-loss above liquidity grab (for shorts) or below it (for longs).
Aim for a take-profit level at the next liquidity zone.

Example: Turtle Soup in Action 📈

Here’s how the strategy plays out:

Asset: EUR/USD
Timeframe: 15-minute chart
Setup: A clear swing low attracted stop losses below it.
Liquidity Raid: The price dipped below and formed a long wick rejection.
Confirmation: A bullish engulfing candle appeared in a Fair Value Gap.
Entry: Trade executed after confirmation.
Stop-Loss: Placed below the wick of the liquidity grab.
Take-Profit: Set at the previous swing high.

This trade delivered a 3:1 risk-to-reward ratio, proving the strategy’s power.

Why Turtle Soup Works: The Psychology Behind It 🧠

This strategy works because it exploits retail trader psychology. Here’s why:

Liquidity hunting: Institutions need liquidity to enter large positions.
Fear & Greed Trap: Retail traders panic and exit, while smart money steps in.
False Breakouts: Many traders chase breakouts but get trapped. Turtle Soup traders do the opposite.

Risk Management for Turtle Soup Trades ⚠️

Risk management is key. Follow these best practices:

✅ Risk only 1-2% per trade. ✅ Use tight stop-losses beyond liquidity grabs. ✅ Choose setups with multiple confluences. ✅ Backtest before trading live markets.

Common Mistakes to Avoid 🚫

🔴 Ignoring market conditions: Avoid trading in weak liquidity or choppy markets. 🔴 Entering too soon: Always wait for confirmation before entering. 🔴 Overleveraging: Even great setups can fail, so manage risk wisely. 🔴 Trading against the trend: Ensure trades align with the larger timeframe trend.

Conclusion: Master the ICT Turtle Soup Strategy 🏅

The ICT Turtle Soup Strategy lets traders profit from stop hunts instead of falling victim to them. Understanding liquidity, waiting for confirmation, and applying strong risk management are key.

✅ Key Takeaways:

The strategy turns stop hunts into profit opportunities.
Liquidity grabs, rejection candles, and ICT confluences confirm setups.
Patience and discipline lead to success.

Ready to trade smarter? Start backtesting this strategy today! Drop a comment if you’ve used Turtle Soup or need help applying it.