Depu Capital: What is the Turtle Trading Rule? An Analysis of the Principles of Turtle Trading Rules

1、 What is the Turtle Trading Rule?
The Turtle Trading Rule originated from the famous investment guru Dennis and his old friend William Eckhart's statement during a trip to a returnee farm in Singapore, "We need to cultivate traders, just like Singaporeans raise turtles." Are great traders innate or acquired? There was a heated argument between the two people over this issue.

So the two decided to conduct an experiment, spending tens of millions of dollars to recruit trainees and teach their trading methods, giving each person a100A trading account worth tens of thousands of dollars, these people from all walks of life across the country are inexperienced beginners, and this plan is called the Turtle Plan. The traders trained by the Turtle Trading Training Camp later shocked the entire trading industry and produced many famous traders.
All the content of the turtle training course can be summarized into the following four key points:
1Mastering advantages: Find a trading strategy with positive expectations, as it can create positive returns in the long run.
2Risk management: Control risks, hold your ground, otherwise even if you have a system with positive expectations, you won't be able to wait until the day it creates results.
3Perseverance: Only by persistently executing your strategy can you truly achieve the positive expectations of the system.
4Simple and clear: The essence of the turtle method is actually very simple - capturing every trend. Most of your profits may come from two or three successful transactions, so don't miss any trends, otherwise your efforts throughout the year may be in vain. This is simple and easy to understand, but not easy to achieve.
Finally, Richard.Dennis's most proud disciple, Curtis, was the top performing turtle in the Turtle Program.Fei Si stood up to correct the name of the turtle and wrote down the Turtle Trading Rules.
What are the key issues highlighted in the book Turtle Trading Rules? Firstly, the Turtle Trading Rules book mentions some trading systems, but their trading systems all follow a basic principle, which is simplicity. for example20Daily moving average trading system, as long as the price breaks through20The daily moving average is immediately bullish,. The second aspect of the entire book is that it discusses the issue of execution. The turtle trading system is publicly available worldwide, but few people can rely on it to achieve success. In fact, the important difference between ordinary investors and successful investors is not whether we have a trading system, but rather the issue of execution ability and the ability to implement the trading system. The trading system itself is simple, and the most important factor for investors to succeed is their execution ability. The ability to execute trading systems is the focus of the entire book.
Dennis, the founder of the Turtle Trading Law and a globally renowned investor, as well as Curtis, the best trader trained by the Turtle Trading Training Camp, have all gone through a tumultuous life. Dennis was popular in the trading world at the time and had a huge impact, but he eventually experienced a liquidation and left the trading world. This indicates that human nature is difficult to overcome, knowing what is right may not necessarily lead to achieving it. Curtis is no exception. As the top operator trained by the Turtle Training Camp, he once created billions of dollars and could buy half of an airline. However, he also sold out in a relatively short period of time and eventually returned to the path of working.

2、 An Analysis of the Principles of Turtle Trading Rules
The Turtle Trading Rule is essentially a trend following model for Turtle strategy, which determines the entry and exit signals through the Don Anqi channel breakthrough method. The original turtle trading rules required decision-making on the market and what to buy and sell. The Turtle Trading Rule also analyzes what position size is;Market entry: When to buy and sell;Stop loss analysis of turtle trading rules. When to give up a losing position;Exit: When to exit a profitable position;And tactics: how to buy and sell. If you are not very clear, you can first learn about the stock marketAIIt is more convenient to learn the knowledge of the three major conjectures by first clarifying the basic knowledge.
Analysis of the Effect of Turtle Trading Rules.
Loss aversion in turtle trading rules: There is a strong preference for avoiding losses, which means that not losing money is far more important than making money. For trading behavior, loss aversion can affect a person's ability to use mechanical trading systems, and in probability, you will treat the corresponding results unfairly. The sedimentation cost effect of turtle trading rules: placing more emphasis on the money already spent rather than the money that may need to be spent in the future. The disposal effect of turtle trading rules: early realization of profits, but allowing losses to persist. In fact, the introduction of this aspect in the Turtle Trading Rules is very simple, which means that this phenomenon is very common, and it is important to learn and apply potential more.
Summary:The Turtle Trading Rule is an application infuturesA theory that Richard Dennis earned over3000Ten thousand US dollars. He is one of the pioneers in the field of mechanical trading systems and software, but if you are trading stocks, it is best to use interval trading models. This is Simmons, and there is also software to implement this model - Smart Stock Automatic Trading Software.
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