Tool And Software - Turtle
trading system or Turtle Trading System is a system created by Richard Dennis.
In the early 1980s, Dennis became famous thanks to its success. With an initial
capital worth no more than $ 400 he is able to multiply to more than $ 100
million. Dennis is a graduate of DePaul University with a BA sells. Obtained a
graduate degree from Tulane University before joining the Chicago Board of
Trade.
Dennis
watched the farmers originally turtles shell. The unique way shown by the farmer
it is to ascertain whether the child turtles can survive or not. Namely by
including them one by one into the water. Turtle who drowned eliminated by the farmer for being unable to live long.
While that survive and swim considered capable and maintained to be sold later.
Then
in 1983 Dennis recruited 13 students who are also known as "The
Turtles" is derived from a variety of different backgrounds who may not
have experience in investment / trading earlier. The goal is to prove that by
following a specific rule in the trade, a person can 'learn' to be successful
in trading. Each disciple was entrusted with managing the funds equally large
and were ordered to follow a set of rules Dennis, also known as Turtle Rules.
Interestingly, although it has the same rules, its students it gives different
results. The training program ended in 1988 and a portion of the Turtles become
a successful trader and partly failed.
Methodology Turtle Rules
Trading
systems based on the concept of 'Trend Follower' and taught by Richard Dennis,
or commonly known as the turtle rules, requiring a complete trading system must
have six things, namely:
1. Market
- what to buy / sell The first thing to note is what we will market to trade,
or in other words in the forex world, such as the currency pair which we will
play. This includes diversification, which can be interpreted as what type of
currency pairs that we will play.
2. Size / Volume / Lot -
how much should be sold / purchased. The size will be how much should be sold /
purchased affect diversification and money management. In practice this is the
maximum number of Open Positions allowed.
3. Entry / Open
- when did open position. If we have made a fairly sophisticated system, then
the system will give us the signal when the best time to enter the market.
4. Stop
- when to close the position (at a loss) Turtle rules say that traders who do
not want to close loss-making position at the time will not survive in the long
term.
5. Exit
- when to close the position (in a state of profit) In addition to determining
the loss limit, turtle rules also require that determine when to exit the state
of profit.
6. Tactics
- how to buy and sell Ins and outs of how to open a position must also be
considered, given the particular circumstances of our transactions in status
sometimes wait until profits come (status floating loss)
From
here we can picture, that the Turtle Trading System Trend Follower System is a
system or follow the trend. Bottom line if you want to make a profit do not
fight the trend.
Performance
At the age of 25 to become a
millionaire Dennis (USD millionaire) - 1983 to recruit and train 13 people are
known as 'The Turtles'. When Black Monday (Black Monday) occurred in 1987, Dennis
suffered an unexpected loss of $ 10 million and its total to $ 50 million over
the period 1987-1988. One thing to note that Dennis does not always practice
alone Turtle Rules did he teach his students.
source:
www.turtletrader.com