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Reader Questions Answered

Is the Turtle Trading System a Good One?

I addressed a question on LinkedIn the other day that I thought would be something of interest to folks here as well. The asker inquired:

I am trying to learn more about the ‘Turtle Trading system’ outlined in Micheal Covel’s book. Has anyone have experience with it? Is it easy to learn and follow?

The book to which this gentleman refers is The Complete TurtleTrader. It’s one which I did a review of a while back (Book Review: The Complete TurtleTrader). Actually, I think the Turtle system is presented in a better fashion in Way of the Turtle, the one written by Curtis Faith (Book Review: Way of the Turtle). Covel’s book is a good history, but Faith’s is a more indepth view of the Turtle way of trading.

To answer the basic question, though, while the Turtle system is easy to learn and follow, it is not one most traders can use. It requires a lot of capital to employ properly. In response to that, Gerry (the questioner) asked:

Are there better trading systems out there? Also, does your book go into the steps of setting up a trading system for a small investor?

My response to that is better, of course, is a relative judgement. What is great for me might be awful for you. What may work well for large portfolios, may work poorly for small ones, and vice versa. If you don’t have the capital to trade the Turtle system as designed, then yes, there are better ones for you out there.

As for my book (The Essentials of Trading), it does indeed talk about trading systems. There are three chapters talking about developing, testing, and comparing them.

By John

Author of The Essentials of Trading