1 Fighting the scams, frauds and charlatans The Original Turtle Trading Rules The Original Turtle Trading Rules 2003 Table of Contents Examples 15. F OR E W ORD The Importance of Position Sizing 16. Free Rules ? Are you kidding? 1 Units as a measure of Risk 16. The Origin of the Free Rules Project 1. The Ugly Truth about the System Sellers 2 C HAP T ER 4. Rules You Won't Follow Don't Matter 3 Entries 19. The Genesis of the Project 4 Breakouts 19. Adding Units 20. I NT R ODUC T I ON Consistency 21. The Turtle Experiment 6. C HAP T ER 5. C HAP T ER 1 Stops 22.
2 A Complete Trading System 8 Turtle Stops 22. The Components of a Complete System 9 Stop Placement 23. Markets 9 Alternate Stop Strategy The Whipsaw 24. Position Sizing 9 Benefits of the Turtle System Stops 24. Entries 9. Stops 10 C HAP T ER 6. Exits 10 Exits 26. Tactics 10 Turtle Exits 27. Summary 10 These are Difficult Exits 27. C HAP T ER 2 C HAP T ER 7. Markets 11 Tactics 28. Entering Orders 28. C HAP T ER 3 Fast Markets 29. Position Sizing 13 Simultaneous Entry Signals 29. Volatility The Meaning of N 13 Finally 31. Dollar Volatility Adjustment 14.
3 Units 15. C HAP T ER 8. Further Study 33. Trading Psychology 33. Money Management 34. Trading Research 34. Original TURTLES. Foreword f Free Rules ? Are you kidding? Why are some of the Original Turtles giving away Rules for which others have charged thousands of dollars? Are these the actual Original Turtle Trading System Rules ? Y. ou probably asked yourself the same questions: Why would anyone give away the Rules to the Original Turtle Trading System? How can I be sure that these are the Original Turtle Trading System Rules as taught by Richard Dennis and William Eckhardt?
4 The answer to these questions lies in the origin of this project. The Origin of the Free Rules Project This project had its seed in various discussions among a few of the Original Turtles, Richard Dennis, and others regarding the sale of the Turtle Richard Dennis and Trading System Rules by a former Turtle , and subsequently, on a William Eckhardt were not consulted prior to website by a non-trader. It culminated in this document, which the marketing of the Turtle discloses the Original Turtle Trading Rules in their entirety, free Trading Rules and did not benefit in any way from the of charge.
5 Sale of the Turtle Rules they developed. Why? Because many of us believed that we owed an obligation to Richard Dennis not to reveal the Rules , even after our contractual 10 year secrecy pact ended in late 1993. For this reason, we did not look kindly upon the sale of those Rules by a former Turtle . Further, we saw the sale on the web site as crass and opportunistic intellectual property theft, an act that, while technically not illegal, was certainly not honorable. At the same time, having seen others try to follow these Rules first-hand, I realized it was unlikely that their publication would result in very many people actually learning to 1.
6 Original TURTLES. trade like the Turtles. In fact, I knew that most of those who spent thousands to learn these heretofore secret Rules would end up disappointed, for three reasons: The Rules wouldn't be clear, since the people selling them didn't know how to trade. Even if they were clearly presented, the buyers probably wouldn't be able to follow the Rules . Most of the Turtles are now trading even better Rules . The Ugly Truth about the System Sellers I've been trading and hanging around trading circles since high school. One of the sad realities of the trading industry, and the futures trading industry in particular, is that there are far more people making money selling others' systems and ways to make money trading, than there are people actually making money trading.
7 I won't go into specifics here, but those of us who actually trade for a living know the names of many famous traders who are famous as traders, but that don't make money as traders. They make money selling new trading systems, seminars, home study courses, etc. Most of these so called experts can't trade and don't trade the systems that they sell. Yes, this is also true of those selling the Turtle Trading Rules . Consider the major sellers: the first, a web site, , and the second, a former Turtle . Here's what they won't tell you: - A web site run mainly by one guy (an admittedly talented web marketer that also has a pharmacy site and a site that sells personality tests), purports to have the actual Turtle Trading Rules , and will sell them to you for $ The site is filled with huge amounts of information about trading, and bills itself as the No.
8 1 Source for Trend Following Worldwide.. What they don't tell you is that the site is run by a guy who doesn't even trade his own Rules or trade at all for that matter and has never been a successful trader. Yet he purports to be an expert on the Turtle Trading Rules , and on trend following! You can get something close to the actual Rules from this site, but you won't get any expert advice from the guy who runs it. All you will get is the regurgitation of advice from other traders that is not tempered by the experience of a successful trading career.
9 Paying for advice from this source is a lot like hiring a blind guide. In the final analysis, is not any better than other scams and system selling hucksters he warns about. It is a site run by a guy who appears to me to be more 2. Original TURTLES. interested in taking his customers' money than he is in their success with the system he sells; a site run by someone who misrepresents himself as an expert in trend following, yet doesn't mention that he doesn't trade. The money-back guarantee is almost worthless; you have to keep a log of all your trades and prove that you made them in the markets by providing your brokerage statements.
10 If you don't like the Rules and want your money back, it seems exceedingly unlikely that you would open a trading account and then trade for a year just to get the refund. Former Turtle - This individual, a former Turtle , sells tapes, books, hotlines, videos, seminars, and more, for prices ranging from $ to $2,500. What the Former Turtle won't tell you is that he never made money as a Turtle ; in fact he didn't last a full year as a Turtle before he was fired from the Turtle program because he couldn't trade the Turtle System Rules successfully. He lost money while most of the other traders were making a lot of money.