The Turtle Traders And Their Exact Rules
How Everyday People Made Millions Trading Stocks
The turtle traders are without a doubt one of the greatest trading stories ever! The turtle traders were a group of 14 average everyday people who learn simple trend following rules and went on to make more than $175 million. In this short article, I'm going to share the exact strategy they used and how you can use it too!
Richard Dennis is one the world's best trend followers who turned 5k into 200 million. He bet his friend that anyone could have success trend following if they followed simple trend following strategies.
He picked 14 random people, most without prior market experience, and taught them his strategy. They have now become some of the most studied and most successful trend followers of all time! They faced a lot of challenges a long the way, but have also made the most money recorded by beginners in less 3 years. Continue reading below to learn the exact strategy they used and how applicable it is today!
Here are the rules of the turtle trading strategy:
1. Entry: Buy when the price breaks above the 20-day high
2. Stop loss: 2 ATR from the entry price
3. Trailing stop loss: 10-day low
4. Risk management: 2% of your account
Vice versa for short trades
1. Bonds & Interest Rates: 30-Year US Treasury Bond, 10-Year US Treasury Bond, Eurodollar, 90-Day US Treasury Bill
2. Commodities: Coffee, Cocoa, Sugar, Cotton, Gold, Silver, Copper
2. Energy: Crude Oil, Heating Oil, Unleaded Gas
3. Currencies: Swiss Franc, Deutschmark, British Pound, French Franc, Japanese Yen, Canadian Dollar
Note: The original turtle trading rules are a little more complex as it trades both a long-term and short-term breakout. Also, it scales into winners as the price moves in your favor.
(If you want the exact trading rules, then check this out.)
The real question is does this strategy still work today. The answer is yes and no.
The idea and concept behind trend following works today, but the exact strategy they use doesn't work anymore because of how complex the markets have gotten.
One amazing trend following approach that has been adapted by the top trend traders is an indicator called the Impeccable Trending Band.
The Impeccable Stock Software is actually based on this indicator and a software built for Trend Traders! If you would love to learn more, click the link above to start your free trial!
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