Book SummaryThe Complete TurtleTrader, by Michael W. Covel

1-Page Summary1-Page Book Summary of The Complete TurtleTrader

A scrutiny of the foundational aspects, instructional framework, and the inherent functional processes of the Turtle experiment.

This section of the story delves into the captivating beginnings and the evolutionary growth of the trading venture initiated by Richard Dennis, detailing the comprehensive instruction received by the trainees and the complex social dynamics that emerged among them.

The origin story and development of the Turtle trading experiment.

Dennis and Eckhardt held differing views regarding whether trading skills could be taught or were innate.

The Turtles' experiment originated from a debate between Richard Dennis and his colleague, William Eckhardt. Dennis firmly believed that others could attain success through systematic instruction by treating the markets similarly to a strategic game like Monopoly, where the essence lies in learning and mastering the rules and strategies. He attributed success to rigorous preparation and the steadfast application of certain rules. Eckhardt was of the opinion that the root of Dennis's achievements lay in a unique and innate talent for trading, possibly due to an intuitive "sixth sense" or a natural ability, rather than a set of teachable skills. The differing perspectives laid the groundwork for a practical experiment designed to resolve the argument definitively.

Dennis utilized a distinctive approach to choose participants for the Turtle program.

To evaluate his hypothesis, Dennis implemented a unique method of selecting candidates. He looked for candidates to trade in commodity futures by placing ads in well-known financial publications, stating that although prior trading experience could be beneficial, it was not required. The advertisements presented an opportunity to learn Dennis's proprietary trading methods and to manage trades on his behalf, with the promise of a portion of the earnings as motivation. This unorthodox approach to hiring, which strayed from Wall Street's typical preference for candidates with established track records, attracted the attention of over a thousand individuals keen to receive guidance from an experienced market trader. The advertisement depicted a route to riches that appeared direct, akin to receiving an invitation for auditions with a team of professional sports players, highlighting the lack of need for prior experience.

The varied origins and character traits of the individuals selected for the Turtle program.

Dennis deliberately chose participants for his study from a diverse range of backgrounds and personalities, seeking a mix of unique individuals. The ensemble, dubbed the Turtles, comprised individuals from varied educational backgrounds, ranging from high school graduates to those with doctoral degrees, and their prior professional experiences spanned roles from accounting to bartending and playing blackjack at a professional level. The varied assembly demonstrated that individuals from all backgrounds, regardless of their prior knowledge or experience, could successfully adopt and apply Dennis's trading strategies. The book highlights the unique method employed by Dennis to choose his trainees, prioritizing individuals with a solid foundation in mathematics, a propensity for taking risks, and most importantly, the ability to embrace new knowledge while leaving their ego behind.

The Turtles underwent a comprehensive training regimen.

Dennis and Eckhardt provided a comprehensive training program that lasted for a fortnight.

The selected Turtles underwent an intensive two-week training session held at the Union League Club in Chicago. The book thoroughly explains the comprehensive training program, which covers everything from managing risks to the methods for entering and exiting trades, as established by Dennis and Eckhardt. Eckhardt was instrumental in the training process, emphasizing the mathematical concepts that were the bedrock of their approach to trading. The beginner Turtles were subjected to a comprehensive training regimen aimed at instilling a disciplined and impartial approach to trading, which required strict adherence to established rules and thorough memorization.

The approach emphasized...

The Complete TurtleTrader Summary The Turtles' foundational approach to trading and their combined results.

Covel delves into the core principles underlying the Turtles' trading strategies and scrutinizes the impressive outcomes achieved by traders who were mostly novices.

The methodologies and tactics utilized in Turtle trading.

The initiation and termination of trades in both System One and System Two hinge on pinpointing moments of breakout.

The book provides an in-depth exploration of the distinctive trading strategies developed and utilized by the Turtles, highlighting the particular techniques taught by Dennis and Eckhardt. System 1's strategy entailed commencing trades upon witnessing a price surge beyond the four-week threshold and wrapping them up following a downturn in price that persisted for two weeks. This system aimed to capture shorter-term market swings and momentum shifts. System 2 was designed to capitalize on longer market movements, beginning its transactions when there was a noticeable shift in market trends over a period of eleven weeks and ending those transactions when a trend reversal was observed over a span of four weeks. The strategies enforced strict guidelines to commence selling upon hitting predefined loss thresholds, thus controlling...

The Complete TurtleTrader Summary Following the program's end, the participants, who were referred to as the Turtles, pursued diverse paths and experienced varying degrees of success.

The story delves into the diverse trajectories that the Turtles embarked on following their education, scrutinizing the array of elements influencing their enduring triumphs or setbacks, and the manner in which they maintained a connection with their collective Turtle persona as time progressed.

A number of Turtles sustained considerable success over a prolonged duration.

Jerry Parker founded Chesapeake Capital.

Over time, it became clear that Jerry Parker was the standout success story among the Turtle traders. Covel charts Parker's professional journey after leaving Dennis, highlighting the establishment of Chesapeake Capital in Richmond, Virginia, and his sustained record of impressive financial performance spanning more than two decades. He attributes Parker's success to a combination of factors, including his steadfast adherence to the principles established by the Turtles, his adaptability in modifying the approach to manage client funds effectively, and his enterprising nature in creating a thriving business.

Paul Rabar and Tom Shanks likewise attained significant accomplishments as participants in the Turtle program.

In his work, Covel emphasizes the...

The Complete TurtleTrader Summary The legacy of the Turtle experiment is reflected in the achievements of the dedicated Turtles.

Covel explores the enduring impact of the Turtle experiment on the trading sector, scrutinizing the persistent debate over the question of whether trading skills are inborn or can be acquired through learning. He emphasizes the emergence of a subsequent generation and scrutinizes the lasting lessons gleaned from this remarkable experiment.

The narrative of the Turtles inspired and stirred the interest of a wide-ranging audience beyond the original group.

The experiment involving the Turtles stands as a critical moment in the ongoing discussion about whether talent is innate or can be developed.

The author portrays the Turtle experiment as a pivotal moment in the continuous debate over natural talent versus acquired skills. The extraordinary successes of novice traders from diverse backgrounds, who amassed significant gains by following a methodical strategy, strongly support the notion that the skills for trading can be acquired through learning rather than being solely innate. This groundbreaking experiment challenged conventional assumptions, demonstrating the power of nurture and systematic training in achieving success in a highly competitive field often...