Active since the 1980s · Futures · Professional trader
Linda Raschke's Trading Setups and Principles
A short-term trader known for simple, repeatable setups and for trading what she sees, not what she thinks.
Who they were
Linda Bradford Raschke has traded futures professionally for decades and was featured in "The New Market Wizards" by Jack Schwager. She co-wrote "Street Smarts: High Probability Short-Term Trading Strategies" (1995) with Laurence Connors.
The book describes a set of mechanical short-term patterns, several of which, like the Holy Grail and Turtle Soup, are still widely taught.
Principles and rules
1. Simple, repeatable patterns
A few setups traded consistently are better than a large toolbox used randomly.
2. Momentum and retracements
Strong momentum tends to be followed by a retest of the high or low; the first pullback after a strong move is a trade.
3. Fade false breakouts
When an obvious breakout fails, trapped traders fuel the move the other way (Turtle Soup).
4. Manage the trade
Take partial profits early and protect the rest; the exit matters as much as the entry.
5. Trade what you see
React to what the market is doing, not to a forecast.
Key lessons
- Specialise in a handful of setups.
- False breakouts are tradeable information.
- Scaling out reduces stress and smooths results.
Strategies from this method
How to practise it
Try the Holy Grail and Turtle Soup strategies in Candlemind and track them separately in your strategy statistics. Use partial take profits from the advanced ticket.
Frequently asked questions
What is Linda Raschke known for?
Short-term futures trading, the book "Street Smarts" and setups like the Holy Grail and Turtle Soup.
What is the 80-20 setup?
A setup from Street Smarts: after a day that opens in the top 20% of its range and closes in the bottom 20% (or vice versa), the next day often reverses after briefly extending.
Summaries and paraphrases of public books and interviews, for education. Not investment advice.