The Story of the Turtle Trading Rules
Reflections on the Turtle Rules and System Trading ....
The Rules make over 300 million dollars for the traders who originally used them and they still work today. The Turtle Trading Rules make money long term and also give traders a good idea of what makes a good trading system and below I have listed the main reasons the system will make money long term.
The Turtle Rules are simple and robust - ALL the best trading systems are simple because - if you make a system to complex, it will have to many elements to break.
The logic is easy to understand and breakout trading is a timeless way to make money. Furthermore, on any trading system, you will have as many losing trades as winners and in terms of the Turtle rules 70% of trades will be losers so its vital you run prfotis to cover them. Never believe any auto trading system which says it wins 80% or more of its trades - it won't in real time trading. Top trading systems work on the basis, they will have as many loising trades as winners ( or more ) btu compensate for this by running there profits to cover there losses.
The Turtle rules trade long term – its a fact that long term trading systems work better than short term systems. Any system which trades within a day will never make money. This is because all short term movements are random and also, in day you will never have enough profits on winning trades to cover losers.
The Turtle Rules trade ALL markets with the same rules. Many systems change parameters and rules, to trade different markets or different currencies. This of course is curve fitting, the system rules to fit data which will never work.
The Turtle trading system has long periods of dradown but over the long term, its performance to drawdown is excellent. All automated trading systems will suffer months of drawdown even the top systems in the world. You will however see many systems sold online which show little or no drawdown (with losses only lasting a few weeks or less) but these systems are fake. Sure you make money long term but you have to ride out drawdown with discipline for long periods.
Is System Trading for You?
If you have a long term outlook patience and discipline, you can make money with automated trading systems and find many which will give you solid 30% annual profits. If you are not patient, want to be more in control of your trading and seek bigger profits, you should develop your own trading plan which is far easier to do than many traders believe.