Turtles of the Forex market
The King of futures is looking for traders!
It all started in the year 1983 when the pages of Wall Street Journal, Barron and New York Times got flooded with the announcements from Richard Dennis who was looking for trading pupils. Who is Richard Dennis? That's a legendary trader who won his first million at Forex at the age of 25! He specializes in futures and not for nothing was he called the king of futures. Richard promised that he would teach his pupils everything they needed and would allow them to trade. The pupils only needed to move to Chicago where they would have monthly incomes and their share in profits.
What was it all about?
It was just that two friends - Richard Dennis and William Eckhardt - had an argument. Richard was 30 at that time and he thought that anyone could be taught trading, that no special talent was needed and understanding a couple of rules and regularities would be enough. Being a mathematician, William countered Richard and contended that no one would tame the currency market without relevant skills and instincts. The multi-year argument led to an experiment that needed some ordinary people willing to move to Chicago and start trading in the Forex market. By the way, the bet was as little as 1 dollar.
Richard recruited 14 participants. Almost all of them continued trading after the training. Many of them set up their own funds management companies. Seven out of those "turtle" companies were on the list of top 20 most profitable businesses. But only 1 third of those 14 pupils had had an idea of the currency market before the experiment. The second third had heard something about it, and the last third had had no idea at all at the beginning of the experiment. Of course, that proved Richard's theory that some concrete knowledge about the market may serve as a basis for mastering the trading profession and becoming successful.
What did Dennis and Eckhardt teach?
What they taught may be considered as the underpinning for the "Turtles" strategy. Unfortunately, its full original version is lost, but the essence is still the same. First and foremost, this strategy is applicable to long-term trends. Traders shall be guided by the price reflected on the chart. They don't use the fundamental analysis. A signal to sell is a downward market movement, and vice versa. The peculiarity of the "Turtles" strategy is in the fact that this system does not imply any searches of tops and their drawing. Why is there so little information? Just because the participants in the experiment were not allowed to share the knowledge they had received during 20 years following the training. However, the turtles' tongues didn't get loosened even after the “moratorium” period expired. Apparently, they may think that the more popular the strategy is, the less efficient it turns out to be. Who knows...
The moral of this story is...
If they have succeeded, you will too! A journey of thousand miles begins with a single step. And you don't need to be extra gifted for reaching success in the currency market. Confirmed by Dennis and Eckhardt. If you got interested in this trading system, the book "Way of the turtle" in which Curtis Faith, one of the participants in the experiment, shares his training and trading experience may be helpful to you.
Good luck, everyone!