Why were the Turtles so Successful? Discover their 6 part formula

In mid-1983, famous commodities speculator Richard Dennis was having an on going dispute with his long-time friend Bill Eckhardt about whether great traders were born or made. Richard believed that he could teach people to become great traders.

Are Genetics and Aptitude Critical to Trading Success?

Bill thought that genetics and aptitude were the determining factors in stock market. In order to settle the matter, Richard suggested that they recruit and train some traders, and give them actual accounts to trade to see which one of them was correct.

They took out a large ad advertising positions for trading apprentices in Barron’s, the Wall Street Journal and the New York Times. The ad stated that after a brief training session, the trainees would be supplied with an account to trade. Since Richard was probably the most famous trader in the world at the time, he received submissions from over 1000 applicants.

Give me $1million and I’ll…

Of these, he interviewed 80. This group was culled to 10, which became 13 after Rich added three people he already knew to the list. The traders were invited to Chicago and trained for two weeks at the end of December, 1983, and began trading small accounts at the beginning of January. After they had proved themselves, Dennis funded most of them with $500,000 to $2,000,000 accounts at the start of February.

The students were called the “Turtles.??? Richard Dennis, who had just returned from Asia when he started the program, explains that he described it to someone by saying, “We are going to grow traders just like they grow turtles in Singapore.???

The Most Famous Trading Experiment Ever

The Turtles became the most famous experiment in trading history because over the next four years, they earned an average annual compound rate of return of 80%. Yes, Richard proved that trading could be taught. He proved that with a simple set of rules, he could take people with little or no trading experience and make them excellent traders.

The Turtle Trading System was a Complete Trading System, one that covered every aspect of trading, and left virtually no decision to the subjective whims of the trader. Most successful traders use a mechanical trading system. This is no coincidence.

Who needs a robust mechanical Trading System?

A good mechanical trading system automates the entire process of trading. The system provides answers for each of the decisions a trader must make while trading. The system makes it easier for a trader to trade consistently because there is a set of rules which specifically define exactly what should be done.

The mechanics of trading are not left up to the judgment of the trader. If you know that your system makes money over the long run, it is easier to take the signals and trade according to the system during periods of losses. If you are relying on your own judgment during trading, you may find that you are fearful just when you should be bold, and courageous when you should be cautious.

If you have a mechanical trading system that works, and you follow it consistently, your trading will be consistent despite the inner emotional struggles that might come from a long series of losses, or a large profit. The confidence, consistency, and discipline afforded by a thoroughly tested mechanical system are the key to many of the most profitable traders’ success.

The Turtle Trading System was a Complete Trading System. Its rules covered every aspect of trading, and left no decisions to the subjective whims of the trader. It had every component of a Complete Trading System.