TURTLE TRADERS STRATEGY - The Complete TurtleTrader by Michael Covel. (Richard Dennis)
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- Опубліковано 26 чер 2024
- TURTLE TRADERS STRATEGY - The Complete TurtleTrader by Michael Covel. (Richard Dennis)
The complete Turtletrader is a fascinating story evolving from two successful stock traders, Richard Dennis and Bill Eckhardt. Also publicised via the book Way Of The Turtle.
Richard Dennis was a very successful commodity trader, in which he was classed as a pioneer for trend following strategies, and believed his stock trading skills could be taught.
He created the turtle trading program, training 14 people in a matter of just two weeks before allowing each trader to trade live accounts of $1 Million dollars each.
The Turtle Traders experiment for trading stocks was a huge success raking in over $150 million in profits in just 4 years.
The trading strategy was based on a breakout trend following system with good risk management criteria.
I hope you enjoy the summary and gain some knowledge from the turtle traders including (Jerry Parker), who show, by keeping it simple can actually work.
Also inspired by the book Way Of The Turtle by Curtis Faith, featured in the book.
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As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.
I also offer a paid subscription service for those looking to see all my investment decisions.bit.ly/40S034v
After years in the market and reading all sorts of books, that quote by Richard Dennis that "anybody can make up a trading system that is 80% of what he taught the traders" really rings true to me. I am convinced that retail traders' true edge does not reside in the particular strategy, but in risk management and psychology.
Well said
That's so true. Simply look at most any stock chart and it's easy to see entry and exit points. It's having the calm to wait for both.
Trade INNEVITABLY results in extreme levels of Wealth concentration. It is a mathematical inevitability for as long as trade is present.
Consequences? Your saving accounts get empty, any investments are gone, all that is left to trade then is yourself but you eventually get old so your only value is that of a bio-mass to use for making fertiliser or soap or glue.
The solution is, perpetual even redistribution of sufficient wealth, indefinitely, to prevent the inevitable extreme levels of wealth concentration.
True dat
True to an extent. You first must have some strategy that consistently makes a profit, otherwise your doomed no matter how disciplined you are.
It should be noted that Dennis and Eckhardt were not trading stocks, but were trading futures. Also, the Turtles were provided with a set of discretionary rules, not mechanical rules. Dennis indicated that he was not interested in creating a bunch of trading robots. He wanted each trader to add their own flair.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $850k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@@sommersalt88 Please who is the consultant that assist you with your invest-ment and if you don't mind, how do I get in touch with this person?
My advisor is ‘’LISA ELLEN SHAW’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversification and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@@sommersalt88 I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
This is one of my all time favorite trading books, this had a profound impact on how I trade
Thanks Christopher👍 You channel is great by the way....
And are you rich?
@@jonny1one634 No. :D
Yeah, Trading can be taught. But Rich and Bill have also shown that not everyone can do it. Out of 1000 applicants, 40 were shortlisted. 13 were then trained as Turtles, some of whom were later kicked out of the program for not following the rules.
Very true
Dennis was their times' algorithm trader. He was totally true to stay away from emotions and only apply rules. It was a great experiment for trading history. Thanks to FW to make a nice summary to us!
🙏
Its true...Stay away from emotion..👍👍👍👍
But Easy to said than done...
the turtles winrate is not a reflection of the market but a reflection of their trading psych in lieu with the trading strategy. since they learnt the same strategy but had different winrates
Another amazing and well researched piece of work.
Glad you think so!
Fabulous review... I have read the book a couple of times, and your review is bang on. Kudos to you....
Thanks Sameer, much appreciated👍
I am so glad that I discovered this book. The system is absolutely brilliant once it clicks in your head.
it is...
Absolutely!
This is a valuable resource channel for traders. I have watched some of these videos over and over. I am testing this strategy now and I watched this again.
Thanks 🙏
Thanks mate.
Really nice of you to share such a concise review of a great strategy book to help all and sundry. God bless you.
Glad you enjoyed it!🙏
I read this book 3 years ago.. Its idea still becomes my core principle in my trading style.
Great
And are you Rich?
@@jonny1one634yes
A brilliant insightful summary...thanks
Thanks Rory!
wooow. 5 stars to you for this video!
Just bought this on audible while watching this. To the moon!
Thank you for that coverage of the Turtles book. That was very easy to follow.
Glad it was helpful!
Bravo, as always!
Thanks again!👍
was lazy and didnt finish the book but the summary you gave even though it is detailed motivates me to read the book and above all be a principled trader. thanks a mil
Glad it was helpful!👍
Improved returns since?
Superb video ! This channel is a goldmine
Thank you so much 😀
Is the stock market actually getting better or is this the regular end of year market manipulation to entice new investors, I'm currently sitting on an inheritance of 500k and i'm wondering do I invest in stocks or Gold?
It is advisable to diversify while retaining 70-80% in secure investments. Along with your budget, you should think about financial advising.
Its unclear which stocks and sectors will lead the market in the next uptrend. Stay away from rebalancing if you do not have guidance from a planner and Advisor/strategist. My finances have been in order since I got a wealth planner like Monica working with/for me. This approach has helped me stay financially secure for over nine years, yielding nearly $1m ROI.
What did you invest in? Who is the advisor that guides you? more info on this if you don't mind
Nicole Desiree Simon deserves credit as one of the finest portfolio managers in the industry. Her reputation precedes her, and I highly recommend looking her up to locate her online if you are internet-savvy
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks.
thank you again! ♥️🔥
Thank you Hikohidrio 👍
Great basic explanation it there is so much more to it than this. Anyone wanting to do this should buy the book.
I just discovered your video's this morning & I own a few of the book's you've covered. You do a SENSATIONAL job of breaking the books down! The One thing you got wrong on this video is that picture between 0:53 - 1:12 is Paul Tudor Jones another Legendary Wall $treet Trader not Richard Dennis. Keep up the GREAT work. I'm going to keep watching the video's of the books I don't own.
Hi Kingpin, LOL thanks for pointing that out! Rookie error... thought he looked different with age! Thanks for the feedback👍
How are your returns since consuming the books?
Great video. Thanks!
You're welcome!
I started trading with 25k, ( so I could daytrade w/o pdt rule). I lost $2700, and stopped...That was the best $2700 I ever spent, it taught me discipline...
Are you still trading?
@@infiad1275 yes, back in it, not easy still trying to find a winning strategy, but have not lost any more...
@@califcamper I hear ya. Rowing the same boat. We'll get to the other side as long as we keep rowing.
Hey guus ,so hows the trading going?
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What exactly does Mr Bracher do for you, it not quite clear to me, does he sell you signals?
I couldn't agree more
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Looking at the final slide summarizing turtles performance , there are big difference among them even though they are using the same system - the ability to trade is a gift
Excellent point, I thought the same. It would be fascinating to understand the differences. Perhaps out of so many potential trades to take, the better performers had a better selection criteria, or perhaps there was a bit of luck involved? 🤔
This trend following method (Donchian channel breakouts and systematic pyramiding technique + a form of Kelly criteria to control risk) is similar to Darvas technique.
Thanks for sharing!
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Thanks again!
Any time!👍
9:06 I can already see that being a total mind melt for most people.
no doubt..
Nice one Gareth!
Thanks Anthony👍
thanks a lot
Your welcome Umut
Very good information. 👍👍
Glad it was helpful!🙏
9:00 I learned that the hard way in the 2000s about entering stops ahead of time
valuable information
Glad it was helpful!
Amazing!
Thanks!
Actually reading this book right now. Amazing
Thanks Bob👍
Hello mate, might i ask your thoughts on the book. I'm considering purchasing a copy but would love some insight. How did you find it?
@@maxwelch4872 It was a great book. Very informative. Teaches you alot about trading. More specifically it mostly explains the Turtle Trading Strategy
Good book review sir Love from pakistan Lahore.
🙏
Didn’t Dennis himself in 1987 lose over 50% of the investment fund he managed? He was sued by his investors for allegedly not following his own system. I think most of the loss happened on Black Monday. Wonder how his turtles did during this event.
something tells me the students received a lot more than 2 weeks of training. no one in the 1980's would give someone a million dollars then walk away and say, "ok see you in four years"
They were well monitored with trading limits..
Another great video, trend following is one of the most consistent strategies as you make money when the market is bullish and when its bearish!
Very 👍
Hi, it would have been very helpful, if you would have explained with an example position sizing and importantly how stops price is decided to maintain 2% N
I have the book coming in the mail. Great info, you gave me a great head start. Thank you.
Wonderful! Thanks Devins👍
How was the read? I'm considering doing the same.
@@maxwelch4872 I enjoyed it. A fun read.
Long time wait for this video sir plse make video like this thank you so much
Thanks Kanhaiya, your welcome
do you have more related and details of turtle trader?
Stop loss has not been clearly explained can u pls elaborate in detail
Great job on summarizing the book; however, are you sure the position sizing part is properly covered? I read the book and it seems to me that the Turtles were taking 2% a trade of the account size right from the get go and then pyramiding up to 4-5 units making it 8%-10% of the account placed in one instrument! There is a whole chapter in the book showing precise calculations of adding units! Thanks
The photo portrait featured at the 1:00 minute mark is Paul Tudor Jones, the billionaire trader, not Richard Dennis.
do you suggest following (to a certain degree) the teaching of this book in the crypto market? if not could you advise or give other books suggestions?
nice
Thanks
If position size increases with N and stops widen with N, then risk is higher, not lower. What you said doesnt really make sense, but thats ok ill read the book to figure it out.
Very interesting. Way back when, I read a book called Making Money, by Howard Ruff. I wondered if you have read it at any point in time and/or would you consider reviewing it. As a beginning trader then, I found a lot of useful information in there. Thanks.
I'll check it out!
I wonder how relevant these trading styles are with all the algo ai traders out there
5 STARS, INDEED.
Thanks🙏
Super bro
Thanks🙏
Hi Gareth, another great addition to your library, many thanks. Does the book publish the details of the rules or did you use another source? Regards Howard
Hi Howard, thanks. Yes there are 30 pages of the 263 which discuss the rules, I do however in general look for other genuine detail when reviewing books/styles etc I also used "The Original Trading Rules" produced by one of the turtles themselves, I'll get a copy and let you know where to find it.
@@FinancialWisdom Hi Gareth, that's useful many thanks. Regards Howard
Can you give the name of that book
@7:47 - did he say their strategy is to buy high and sell low? Can someone help explain that to me?
Growing 400 dollars to one million in 1975 is the same as growing 2,200 dollars to 5.5 million today. He did what small account traders dream about. So it is possible.
🔥🔥🔥🔥
🙏
I'm astounded by the profundity of this content. A book with similar substance expanded my thinking. "Mastering Money Mindfulness" by Benjamin Hawk
So well presented!!! *Subscribes*
Thank you so much!
@@FinancialWisdom Looking forward to your other videos ❤
Fxgoat brought me here😅🔥🇧🇼
Great🙏
Very very nice video sir 👌
Please make video on trading book summary
Excellent...Very enthusiastic...
Are you a trader or Investor
Thanks Jemin! Yes, i would say 80% trader 20% investor - I use weekly timeframe technicals with some fundamentals.
@@FinancialWisdom All the best
Is this book or this video is depicting original turtle trading
This book avalable in telugu language?
I have been following turtle trading, for about 3-4 months in forex. The results are satisfactory, i'm sure that I'll learn more in coming months. But, just One questions. How do you incorporate, DOLLAR PER PIP in your position sizing calculation. Right now I'm just buying/selling 1000 units
I use stocks personally
Following trading rules is as tough as quitting smoking 🚭
Equally as bad if you don't
What happened during the Black Monday October 1987 Crash? Mr. Dennis ,like many, lost his shirt. His Strategy stopped working but with some tweaking ie changing 20 ma to 200ma breakouts can produce 30% returns.
Sensible stop losses and sensible stop losses within market structure is the key. Not sure he did that
please review Trend Following_ How to Make a Fortune in Bull, Bear and Black Swan Markets
Thanks Joe. Noted
If rechard Dennis has written anything about his experiment?
10:30 aren’t the trailing stops the exits…when do you use these 10-20 day exits?
That's what i was thinking. 10-20 exits do not make sense.
But what doesn't make sense to me is this: This system is now well known by lots of people. If the results were as good as advertised then everybody would be using the system. But that's not happening. Why not? I know there are millions of trend followers out there, but they aren't averaging 80%/yr.
Hi opentrunks, many struggle on the discipline and psychology of following such a strategy, there are many earning those kind of returns but perhaps not mainstream because the money involved can skew the returns, and of course the risk/drawdown aspect.
There are probably lots of guys making decent money of this but they are just not big enough or well known enough that you would hear about them. Probably few make the 9 figure sums but there probably a decent amount of 7 figure turtle traders out thers
if more trend traders follow the system, then price would go up simultaneously with all trend traders noticing the trend until the trend started reversing and then everybody would hop out at similar times. the trick is to get in and out at the right time and i guess we know that that's super hard to nail in practice
❤💛💚💙 the period the turtles traded was a huge "up only" trendy commodity period . markets have changed . everyone has tried to do turtle trading algorithms and got rekt to copy their rules
Great vid.. btw how do you know when to use 1N or 2N?
Cant recall, does it not say in video?
nope... Watched it twice
This is one of those things you start doing after repeatedly breaking even despite great gains. Like just use the system dummy and make some profit.
So true
How do you explain Stanley Drunkenmillers statement that he Never had a stop when trading? I'm sure trading huge amounts that are watched by other traders is far from being a small time retail trader that nobody is watching.
22 day high or low, or 55 day high or low
so is this book helpful for commodities trading or stock trading also??
anyone knows ?
Some of the principles should hold strong in both, but I would advise backtesting first
im pretty sure thats PTJ @ 1:09
Could these rules not be simply created as part of a trading bot/quant strategy, and left to run?
Doubtful James... But i'm sure many of the principles are included in the many bots about
Are you aware of any resources explaining how/why Stig Ossgard outperformed?
are there any recommended course for it?
Not for that strategy - But mine is available of course😊
How do the turtle traders choose a stock to trade?
hi, Price action predominantly
Thanks Gareth. Another excellent review of risk management. It would be interesting to know why some turtles did better than others. Were some not keeping to the rules? Or was it luck?
Hi William, good question, at the initial stages of the experiment some Turtle candidates were removed due to not sticking to the rules. For reasons not completely explained in the book many traders were given significantly different amount to trade too. However, from a % return perspective I guess an element of luck contributed, but overall the outperformance of all the traders against the benchmark was no coincidence, a clear correlation from the training method was evident.
@@FinancialWisdom Thanks Gareth. Yes. the overall results must be highly significant.
Most likely because of choice of stocks too.
The system they used had many significant losses and a few giant winners. The idea was to get in on a trend on the ground floor, but many trends fail to develop. After getting shot down in flames 3 or 4 times and losing 50% of their account you can see why a trader would be gun shy. If he then decided not to take a trade, and that trade turned out to be one of the 2 or 3 big winners of the year that one decision could cut his returns in half. This is one reason for poor performance, another was not sticking to the system and getting ideas of their own. The most successful ones stuck to the rules, or else got lucky when they broke them.
@@mrdanforth3744 yes for sure, I.would say that there are variables to all this, one plus for those getting to read this book is it's a start where without it is? So there we go, knowledge is priceless, there are other strategies out there too...Trade management is key, and trade psychology transforms to trade management, but first one must have a theoretical winning strategy...Slow but steady wins the race
They were smart. They didn't reveal their stop loss positions. Today we call it "Market Makers", "Stop Hunts", Etc.....
Hey. Any book suggestions for value/growth investing?
Hi Ohhhhh, there are many books and gurus promoting either style, what I would suggest is looking at the site I use www.stockopedia.com/new/?coupon=fw25 - They offer an excellent service covering growth,value and momentum investing etc👍
I own this book...
...and this review is 🔥
Thanks Hasan
Why is there a picture Paul Tudor Jones in the beginning? That is not Richard Dennis!
I know, it has been pointed out a few times☺ rookie error...
2% is too close a stop loss ! Market makers can see your stops and can hold sell orders to take them they make money on you, I set them for 10 to 20% I don’t care if I lose 20 bucks on a hundred but I’ll pay that or more if my stops are too tight
It's 2% of equity not position
Is this where “Trading Places” came from?
Possibly yes....
Richard Dennis blew up his fund in the crash of ‘87
Hey there is video in your ads
haha, sorry...
I wonder if they placed a limit or market order once it broke out
REACH HER ON HER TELEGRAM
Silviamorgan is her username for help
Does these methods apply to the stock market? Or only relevant for commodities?
Hi Tom, i believe i commented to a similar question yesterday, the principles remain the same, controlled risk whilst allowing the trend to provide a good risk/reward profile. Obviously the liquidity aspect would play a part depending on the amount you were looking to trade. I use similar practices on equities myself with good results. Hope this helps.
Simply answer: No. Your performance of trading stock market is more depend on your portfolio construction method.
Trend following systems work with stocks that trend. Not all stocks are suitable. I have had good success trend following in TQQQ an ETF made up of tech stocks like Apple, Netflix, Alphabet, etc. You need to find a stock that makes large consistent up moves.
Can this be applied to stocks as well ?
Absolutely Arjun.👍
Stig Ossgard casually grabbing 120% returns as an amateur trader... jeez
If I want to take courses online on this issue and I am willing to pay for it. Can you pls help me on that
Join our group :-) www.financialwisdomtv.com
Hi, I bought your ebook online, but I didn't receive it. What happened? Could you check?
Let me check