I am not sure what you mean by deforming the channel. I don't believe the turtles were concerned with channels in the technical sense of a commodity trading in a range bound area. I think it is simply a matter of determining the high and low over the last 20 and 55 days respectively. However, I would surmise that when cotton moves that that signal will be a stronger buy/sell signal when it occurs.

Although it is a simple system, I am having a helluva time calculating the stops.

Cocoa was interesting today as it marked the fifth day that it made a lower high and a lower low. It also rallied sharply off the bottom of the day and closed strongly in spite of bearish news. Additionally, if you check out TFC or barchart.com, all their technical indicators are bearish.

So, on one hand my head says:

The turtle geniuses say buy high and sell low. And their system is giving a sell signal.
Throughout all the interviews with the worlds best traders you will often hear them say that you should do the opposite of what everyone else is doing/saying.
And I have often read that if the market rallies on bad news or sinks on good news you should buy it/sell it.

So my brain is spinning...lol

My question is where would you place a stop on this market?