Hi,
After reading Curtis Faith, Way of the Turtle I was wondering if anyone on here had adopted any of the books outlined strategies?
The dual moving average cross-over which is always in the market interested me the most due to its simplicity, which seems to be a common theme of the book.
Would like to know if anyone uses or has used these strategies.
Thanks
Tim
I have used Faith’s systems and the 55/20 is profitable, but of late the 20/10 has not been due to most pairs being very range bound.
I can see no reason why you would want to be in the market all the time. Most of the time you are loosing money, not making it.
When you say the 55/20 you mean the breakouts right?
I thought the concept of the dual moving average was to catch the start of a large trend and taking small losses along the way was just a hit that had to be taken to ensure you were onboard for the large trend?
Averages destroy the price structure. Donchian’s channels were preferred by Turtles and others. Why do you want to use some MA crosses which are far inferior in back tests?
Can you explain how they destroy the price structure?
The moving average strategy seems the simplest plus it had a better CAGR.
Keep in mind that the Turtle strategies were employed across a wide array of markets to allow for both diversification and sufficient number of trading opportunities. As such, they are not easily replicable by small traders.
Surely it could work on the main six pairs on a very small risk such as 0.10 a point?
The problem is the main six pairs are generally pretty well correlated, so they would all tend to produce trend signals at about the same time. You would have to trade small and/or not trade some pairs to avoid taking on too much correlated risk. Plus, since you’re essentially talking about fairly long-term trends being played, you run the risk of not getting enough signals to show at least somewhat consistent results. That’s why the Turtles followed several markets with stocks, bonds, forex, and commodities at the same time.
I do a lot of my trading using breakout systems, and would be very bored restricting myself to 6 pairs.
I trade 27 currency pairs iirc, as well as commodities and indexes.