December 31st 2009 Why the Turtle Trading System Worked in 2009
Going into 2010, trend following continues to outdo mainstream market investing vehicles. For example, when compared to stock investing trend traders have impressively out performed (3x’s) the index since the mid 80’s
Even thought risk averse stock investors argue that greater risk is inherent in trend following, they can’t deny their overwhelming performance.
One longstanding trend trading system that has withstood the test of time and more importantly steep stock market declines and bear markets is the Turtle Trading System by Michael Covel. Although originally founded and popularized by Richard J. Dennis in the early 80’s, Dennis’ philosophy was that anyone with the right stock market training can be an extremely successful.
One of the significant realizations that most turtle trading software system analysts emphasize?and even those questioning, “Does the turtle system work?” is this: Turtle traders are disciplined in their approach.
It’s not a buy low and sell high trading strategy. The turtle trading system rules are based on buying when a stocks price is already rising and sell when it is falling. The underlying stock wasn’t as important as the current stocks price and usual volatility. Outside of that turtles only needed to know the amount of money was available in their accounts prior to executing a trade as they only risk a small percentage at any point in time.
Covel’s new generation of turtle trend followers continue to stay ahead of the cutting edge through his new turtle trading software, books, and mentorship support.