I’ve read a book / many forums about the infamous turtle traders and the millions they made.
I’m curious to know though… Wwat was their strategy? Or at least, what [B]style[/B] of strategy did they use? Was it indicator based? Price action based? Fundamental based?
All I know is that it was long-term rather than intra-day. The book I read talked about them investing in Heating Oil, Natural Gas and Coffee – so were they commodity-only traders? It also outlined many different strategies but it didn’t actually state if they used any of those strategies.
Even if you cannot answer my questions, please do share your views on the turtle traders and their story!
The turtles… I haven’t heard that for a while. I used their trade rules for an earlier version of my traderules book. I think I have an e-book about them. Need to look it up. PM me if I forget.
was purely mathematical based. no fundamentals no technical etc whatsoever. you can say bit technical but it is a strategy that is based purely on rules and nothing else.
heres a deeper, very exact explanation of the rules and the mathand etc. behind it. it explains all the strategy when you enter when you close when to size what t buy/sell etc
I find this whole story so fascinating! It makes me wonder if there are other people out there who also take on ‘trainees’ and mentor them to teach them to trade… I wouldn’t say no if I was offered that opportunity that’s for sure!
hehe, “great minds think a like” id say (not sure if i sayed this saying correct englisch isnt my native)
yes i read this short book few years ago, it was very interesting. not the system itself, as its a too slow trading for me, but the side comments the author made about patience and trust into its own system and consistency etc. helped me a lot back then
Yeah the trading style is slow, and after a long time of trying to become profitable I think that style suits me. I want to trade part-time to supplement my income. My problem is… being profitable… and intraday trading is too quick and stressful for me I end up eating my account.
Hence why I’m so interested in the turtles - they trade slow with large gains aka the style I’m trying to achieve!
Use the search button bro and type in donchian channels. You’ll find a thread devoted to channel trading. Put a lot of hard work in but unfortunately others didnt carry that workload.
Word of caution but. Turtles traded futures not forex.
yes mostly but forex aswell (futures on currencies, not what we know as CFDs today). the good about turtle is that its a pure mathematical guide/rules book without any underying “trading-style” so it can be used on virtually everything
I’m trying to model the turtle trading rules so I understand them properly before I back test and I have a bit of an issue with multiple entries, I wonder if you can help.
if N = 1% of equity, placing a stop at 2N from entry gives a risk of 2%
Where N = 12.5 in a market and we are playing long, can you tell me what I have missed in the below scenario
1st Unit entry 1310 Stop 1285 total risk 2N or 2 %
2nd Unit entry 1316.25 (0.5n from intial entry) All stops moved to 1291.25 or 2N from 2nd unit entry risk now equals 2N (for second entry) + 1.5N(for first entry)
3rd Unit Entry 1322. 5, stops moved to 1297.5 (2n from latest entry) Risk equals 2N + 1.5N + 1 N = 4.5N
4th Unit Entry 1328.75. Stops moved to 1303.75 Risk = 2N + 1.5N + 1N + 0.5N = 5N
This is in excess of the total units risk allowed in a single market.
Everything you said is correct. So to the maths. At the heart of the system is this concept of N which you seem to have. N being nothing more than the ATR. Where you have gone wrong is that it looks like your confusing risk with units.
Your example you have only placed 4 units into the one market however because of the maths involved in the scaling (which you have right) effectively you have 5 units risked or 5%. This was the acceptable loss for any one setup.
Interesting observation I made while developing bots on the other donchian channel thread for testing. In the spot forex market, the system showed improved performance if you change this rule to only 3 units in any one market. Meaning you would only have 3 effective entry points.
I used their trade rules for an earlier version of my traderules book. I think I have an e-book about them. Need to look it up. PM me if I forget.
