Turtle Trading System Rules-Millions in Up Markets & Down Markets?

The Turtle system was a complete trading system. If it was that simple you can copy and make millions in up markets and down markets. The reality is that most traders lose money. Something like 90%. Trading Systems do not make great traders. What makes great traders is how they think and how they approach risk. Great traders are always trying to limit their losses to small percentages of their account size. Great traders are consistent. Consider the turtle plan however it is not the Holy Grail!

Markets – What to buy or sell

The Turtles traded all major futures contracts, metals, currencies, and commodities.

The turtles traded multiple markets to diversify risk.

Position Sizing – How much to buy or sell

Turtle position sizing was based on a markets volatility using the 20 day exponential moving average of the true range.

The Turtles were taught to trade in increments of 1% of total account equity,( I suggest less)

Entries – When to buy or sell

The Turtles traded a Donchian breakout system, System 1 entered a 20 day break out and System 2 entered a 55 day break out.

Positions were added to in a winning trend. (Pyramiding- However is VERY Risky)

Stops – When to get out of a losing position

System 1 exited at a 10 day break out in the opposite direction of the entry and System 2 exited at 20 day break out in the opposite direction of the entry.

No trade could incur more than a 2% equity risk, stop losses were planned accordingly

Tactics – How to buy or sell

The most important aspects of successful trading is confidence, consistency, and discipline.

The Turtles believed that successful traders used mechanical trading systems.

They traded liquid markets only.

Turtle traders bought strength, sold weakness, controlled risk, and followed their rules.

More important than the trading methodology of the turtles was the mindset of each of the turtles. They all had different results based on their trading psychology. Richard Dennis the teacher of the turtles blew up not once but twice because he did not monitor the risks. This is paramount. Do not think you can just take a weekend course or pick up a book and make millions in up markets and down markets! It takes hard work and the vast majority of that work is your trading psychology. If you do not to focus on this…you will not really stand a chance to succeed…Trading Systems do not make successful Traders!

Past performance is not indicative of future performance

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