Some of the true / false questions asked from the applicants are listed in the book and I tried to quickly answer them myself. The right answers aren’t included but hopefully I did good enough. One of the key factors here is why people with outstanding intelligence can be terrible traders. He describes how Dennis interviewed and selected his students, details their education and experiences while working for him, and breaks down the Turtle system and rules in full. He reveals how they made astounding fortunes, and follows their lives from the original experiment to the present day.
Even though they followed the same rules, there was a wide variation of in each individual’s performance. While the exact reason is unclear, Dennis was having some issues of his own. Many of the Turtles started to trade for clients on their own. There is a whole chapter on Jerry Parker, a successful Turtle who founded Chesapeake Capital and started managing money for clients. But not all Turtles were successful after the program.
The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires
This fascinating story has also been covered in Jack D. Schwager’s Market Wizards book and in other materials by the author Michael W. Covel. The Complete TurtleTrader was first published in 2007. I have read about the traders featured in this book and listened to them on podcasts. So I was already aware of much of the content but there was still so much new, too.
The moral of the story is that trading can be learned and you don’t need to be born with special skills. However, people with entrepreneurial mindset and toughness to take losses and get back up, were the ones to continue on the the complete turtletrader review success path when trading without a mentor. If you like the review, I recommend to read the whole book. There is a lot more described and details that make a difference how a reader will gain the insights and inspiration.
- Perhaps most stunning was that C&D Commodities was going to teach proprietary trading concepts.
- And while there are a near infinite variety of potentially successful trading strategies (as the book Market Wizards shows), some of the most successful strategies have been mechanical trend following systems.
- He describes how Dennis interviewed and selected his students, details their education and experiences while working for him, and breaks down the Turtle system and rules in full.
- The book was sold over the summer to HarperCollins (Publisher of Freakonomics, Good to Great, etc.).
- The ongoing experiment shows that there is more to it than just following mechanical trading rules.
- This casting of a wide net was all part of Dennis’s plan to resolve his decade-long nature-versus-nurture debate with his partner William Eckhardt.
Some of the Turtles did great, continuing on in the tradition of successful trend traders, others gave trading a shot but failed to repeat their prior performance, and still others became near total losers. The ongoing experiment shows that there is more to it than just following mechanical trading rules. The true secret is more fundamental and like human nature itself is neither simple nor easy to define. The answer takes wisdom and solemn reflection but clues are sprinkled copiously throughout the book. What happens when ordinary people are taught a system to make extraordinary money? Richard Dennis made a fortune on Wall Street by investing according to a few simple rules.
The two men decided to put their debate into action and through the training experiment find out about the nature vs nurture aspect. The students were going to trade the firm’s money and be able to keep a part of the profits. For many it seemed a too good opportunity to be true. Dennis taught the Turtles his theory-driven quantitative trading approach – mechanical trend-following based on a set of rules. Some core axioms of the Turtles sound very relevant even today, almost 40 years later; similar to what I have written down myself. Dennis and Eckhardt were very strict about their rules and they had to let some people go, so not everyone made the cut.
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He played favorites, giving some millions while others only thousands. This created tension, rivalries and confusion among the group, a fascinating story in and of itself. There was also competition among the Turtles in terms of performance.
Richard Dennis had always thought trading to be something that could be learned. He thought about money differently than most people. His partner William Eckhardt thought one was born either to be a trader or not.
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Potential students who were ultimately hired recall being stunned. “This can’t be what I think it is” was a common refrain. It was, unbelievably, an invitation to learn at the feet of Chicago’s greatest living trader and then use his money to trade and take a piece of the profits. This was probably the worst trade of Dennis’s entire career. The Turtles were profitable, having grossed $150 million for him in four years! They were still floating his boat as he was going to pieces.
Book Review: The Complete TurtleTrader
Some have grown even wealthier than ever, and include some of today’s top hedge fund managers. Even today, long after the experiment was started in 1983, it is relevant. For simple starters, turtle Jerry Parker, turtle Paul Rabar and one of their teachers William Eckhardt manage a combined $3+ billion dollars in assets. This is a complete and objective money making (and in some instances money losing) story with unexpected twists along the way. This casting of a wide net was all part of Dennis’s plan to resolve his decade-long nature-versus-nurture debate with his partner William Eckhardt. Dennis believed that his ability to trade was not a natural gift.
Richard J. Dennis of C&D Commodities is accepting applications for the position of Commodity Futures Trader to expand his established group of traders. Small town guy starts at a gas station and becomes a trading legend worth $100 million. Bottom line though it is a trading and investing goldmine of insight. The book was sold over the summer to HarperCollins (Publisher of Freakonomics, Good to Great, etc.).
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And while there are a near infinite variety of potentially successful trading strategies (as the book Market Wizards shows), some of the most successful strategies have been mechanical trend following systems. You’ve no doubt heard a bit about Richard Dennis, the trend trading pioneer who discussed his mid-1980’s Turtles experiment in Market Wizards. Now, thanks to Michael Covel, we are lucky enough to have access to the whole story. This is the true story of novices trained to be millionaires. It is the only narrative account of trader Richard Dennis and his student traders nicknamed the ‘Turtles’. It is the definitive book on the subject and has been translated into German, Japanese, Chinese (Traditional and Simplified), Korean and Russian.