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Turtle Trading Rules: Does It Still Work Today? (guest post)

Turtle Trading Rules: Does It Still Work Today? (guest post)

In 1983, two commodity traders, Richard Dennis and William Eckhardt experimented to see if trading is an inborn skill or it can be taught.

So they conducted interviews to find people who were the right fit.

A few lucky candidates were selected for the program—they were known as the turtle traders.

Next, Richard Dennis gave the turtle traders a fixed set of trading rules to trade the markets (using his money).

The result?

It was astonishing! Several turtle traders made triple-digit returns within a few short years and some even went on the set up their own hedge funds.

Clearly, the turtle trading rules worked well in the 1980s.

But the question is:

Do the turtle trading rules still work today?

Well, that’s what you’re about to discover in this post.

So let’s get started…

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 617 followers.

Turtle trading strategy: The original rules and results

Turtle trading is basically a trend following strategy for the futures market.

Here are the rules of the turtle trading strategy:

  • Entry: Buy when the price breaks above the 20-day high
  • Stop loss: 2 ATR from the entry price
  • Trailing stop loss: 10-day low
  • Risk management: 2% of your account
  • Vice versa for short trades

Markets traded:

  • Bonds & Interest Rates: 30-Year US Treasury Bond, 10-Year US Treasury Bond, Eurodollar, 90-Day US Treasury Bill
  • Commodities: Coffee, Cocoa, Sugar, Cotton, Gold, Silver, Copper
  • Energy: Crude Oil, Heating Oil, Unleaded Gas
  • Currencies: Swiss Franc, Deutschmark, British Pound, French Franc, Japanese Yen, Canadian Dollar

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