I downloaded a writeup from one of the original turtles some time ago - can't find the link anymore but if you google it, you should find it. The 3 most important concepts are 1) chose your market / share carefully 2) your money management and risk exposure is strictly dictated, right up to he point on how many open trades you are allowed - the turtles always added to their winning trades, so their money management was complex but made sense 3) Always trade the triggers, no exceptions. this is where the most people fail with the strategy. Turtles take huge losses sometimes going for a year or two with no trends. Something like 70% of their triggers do not result in trends, but they rely on the big one to cover costs and make profit.
I like their concept re the 2% rule - their basic premise is entry point is irrelevant and long or short is also almost irrelevant - the main focus is on risk management as future market direction is an unknown. Manage your risk and ride your profits when you trade in the right direction.
Nope, their entry point was super relevant, in fact it was the key to their strategy. You absolutely had to be in on the channel breakout. if you missed it, you then waited for hte 55 day breakout, when you had to get in. if you didn't enter the trade, you would lose
True, S1...20 day high or low...S2 55 day high or low. It was the 2% rule that allowed them to get stopped out a number of times when the market moved against them but allowed them to re enter and catch the trend when it took off. Simon, how does your lazy system work in comparison to the Turtles entry and exit strategy?
The risk/stop management of the turtle rules are very good and I use a similar setup in determining my position sizing. My entry/exit strategies differ, but I have had succes with the 55 day entry. The 20 day entry stops out too easily. The point of the turtle rules were that if you stick to your stratagy you will have succes.
Thanks Simon and Oom....have just finished reading The Complete TurtleTrader and found the principles very interesting. Trend trading certainly challenges you but aligned with price/TA driven entry points and the 2% rule I am hoping to manage my capital risk more effectively whilst waiting for the right trend to pick me up.
Every morning in Africa a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must run faster than the slowest gazelle or it will starve to death. It doesn't matter whether you are a lion or a gazelle. When the sun comes up, you better start running.