Way of the Turtle the Secret Methods that Turned Ordinary People into Legendary Traders by Curtis M. Faith
This is a great book for those of you that don t know who the Turtle Traders were and how they went about making money trading basically everything.
A quick summary is that there were two traders who were very successful at trading Commodities. Richard Denis, William Eckhardt and Richard Dennis bet that they could teach the disciplines that were required in order take any person and turn them into a very successful trader.
This book details everything from how the turtles were selected, all the way through to the results they achieved along the way. Curtis M. Faith is the author of the book and he was one of the original and youngest of the turtles – so he’s well placed to write with authority on the workings of the group.
The book looks at the psychology of trading, the importance of having a plan and following it. There is a strong focus on probabilities and that is what the turtles were really relying on when setting their position size. The last chapter details the Turtle trading rules, so theoretically you could incorporate them into your trading plan. It also analyses the use of trading systems and what happens when they go wrong or are perceived to go wrong, and the effect of over tweaking.
As a bonus, the book is also written in such a way that it also makes for a good story!
I guess the best story relates to Chris talking about all the Turtles playing table tennis, as this was a way to see that even players with less skill could beat other players if they held their nerve and didn t allow pressure to affect their game.
The trading styles that are reference in the mostly in Chapter 10 are ATR Channel Breakout, Bollinger Breakout, Donchian Trend, Donchian Trend with Time Exit, Dual Moving Average and Triple Moving Average.
On a side note: for more information on Donchian Channel Jeff Cartridge our education manager has record a piece on implementing this strategy in MA, click here to check it out.
The high score reflects the book’s ability to relate to your real life trading strategies.
Buy now at the Educated Investor Book Shop, click here.
Reviewed by Damian Isbister