Hi, plus Turtle queries

derekm

Newbie
2 0
Hi guys. Just starting to take an interest in trading and have joined the forum. I've been "buying & holding" for a number of years, mainly due to the "rabbit in headlight syndrome", but I think I can now convince myself to sell on market movements!

I've been working through Curtis Faith's "Way of the Turtle" and have a couple of quick queries/clarifications that I hope someone can answer for me..

1) I think most people think of stop losses in terms of rolling stops, but on P263/4 the implication is that the 2N stops only refer to the entry point and that the planned "exit" is another animal. Is my understanding correct?

2) System 2 exit, P 268. "Exit is a 20 day low for long positions."
Does the 20day count start at the entry point, a low after it, or is it from a low sometime before the entry point? The entry is on a breakout, so previous points must be lower.

Assistance appreciated!
 
Last edited:

wallstreetwarrior87

Senior member
2,066 388
Hi guys. Just starting to take an interest in trading and have joined the forum. I've been "buying & holding" for a number of years, mainly due to the "rabbit in headlight syndrome", but I think I can now convince myself to sell on market movements!

I've been working through Curtis Faith's "Way of the Turtle" and have a couple of quick queries/clarifications that I hope someone can answer for me..

1) I think most people think of stop losses in terms of rolling stops, but on P263/4 the implication is that the 2N stops only refer to the entry point and that the planned "exit" is another animal. Is my understanding correct?

2) System 2 exit, P 268. "Exit is a 20 day low for long positions."
Does the 20day count start at the entry point, a low after it, or is it from a low sometime before the entry point? The entry is on a breakout, so previous points must be lower.

Assistance appreciated!

Might not be what you want to hear, but before you spend/waste (your viewpoint of course) any more time on this, just check these guys out, or indeed anyone involved in turtle style trading. What are they now doing etc????? Markets and traders have evolved,and as this style is so dependent on cycles,it becomes obsolete.

Use the book as a way to help save on your heating bills(y)

Just an opinion, others whom successfully follow the turtle rules may disagree.

Dont always believe the hype!
 

derekm

Newbie
2 0
Might not be what you want to hear, but before you spend/waste (your viewpoint of course) any more time on this, just check these guys out, or indeed anyone involved in turtle style trading. What are they now doing etc????? Markets and traders have evolved,and as this style is so dependent on cycles,it becomes obsolete.

Use the book as a way to help save on your heating bills(y)

Just an opinion, others whom successfully follow the turtle rules may disagree.

Dont always believe the hype!

Thanks for getting back WSW and I take on board what you are saying.

At present I'm just trying to understand what I'm reading and have no intention of putting money to anything yet.

I'm starting to use a rolling stoploss exit on the previous buy & holds, as I know I've missed out a lot with market drops & cycles. Just looking to see if there's a more selective way out, rather than a one size fits all stocks ETF and Trusts.
 

NVP

Legendary member
37,637 2,035
hey D

most trend following systems are very very simple.........thats the beauty of them ( or the horror dependent on your Drawdown)............Michael Covel consolidated a lot of Trend following theories in his books........and it seems you can Write most trading rules on a stamp

so perhaps I suggest you look for the simplest answer to the rules being questioned.......in truth if its that marginal I would exit anyway as enough punishment is enough on that trade

from my recollection - all systems encompass entering on a Breach of a key number of Bars (eg no of days for daily charts ) around 55,100, 200 etc etc ..........and then you hang on for grim death until the price breaches a smaller number of bars (like 20 bars breach / exit for the 55 bar entry )...........the Darvas box was similar

and you go long and short and use a lot of markets to embrace diversification ..........with the real value being around asset allocation and Risk/money management to optimise the returns

personally I would experiment to see what works for you............as Covell states a lot .............you have to really embrace and "GET" what trend followers are doing to be a believer........they are hunting the FAT tails to generate big profits (over time)..........not for everyone though !

N
 
 
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