Two famous commodities traders, Richard Dennis and William Eckhardt, were in a dispute over whether great traders were born or made. The old nurture versus nature debate. Richard believed that you could teach people to become great traders, while Bill thought traders were born. To settle the disagreement, Richard and Bill decided turtle run a little experiment. So, they place an ad in the Wall Street Journal and the New York Times recruiting inexperienced traders into the business of professional trading. Out of the thousands who forex, only 13 people were selected. In December ofthe group was invited to Chicago for two weeks of training. The trainees went live with real money in their accounts starting in the New Year. In the end, Richard Dennis turned out to be right. I learned of the Turtles years ago and was always fascinated by the story. In fact, it is one of the reasons that you are reading this report right now! Recently I read a book by Curtis M. At just 19 years of age, Curtis was by far the youngest trader in the group, but interestingly enough he was also one of the most successful. The remainder of this report will cover what I found…. Rules for Turtle Trading. The Turtle system used two different but related entries. The Entries where based on a channel breakout system taught by Richard Donchian. The first entry was shorter turtle and had more rules. The second entry was longer term and far simpler: T he entries occur one pip above or below the breakout price, not at the end of the day. The additional rules for the first entry are as follows: All 55 day breakouts were to be taken. The N that the Turtles used was the 20 day exponential moving average of the True Range or ATR and it was multiplied by the dollars per point or pip in our case to arrive at the dollar adjusted volatility. The dollar adjusted volatility was then used to determine the size of each unit. The turtle exit was a breakout system just like the entry. The only difference between the entry and the exit was the time frame of the breakout. All units were to be closed out if a breakout occurred. Example of Long Turtle Trade. Trading you can see, when the price broke the 20 day high indicated by the blue line on the top the first unit was bought. All four units were exited when the price broke one pip below the forex day low. Example of Short Turtle Trade. The trade was forex at the 20 day low breakout, indicated by trading red line. This trade was exited when the price broke the 10 day high breakout. This is indicated by the blue line above the candlesticks. The reason for this is two-fold. First, limit orders offer a chance for better fills. When you use a limit order you will be filled at the limit price or better. The second reason that limit orders were to be used is that large orders would not move the market. If it does move the market it will move it less if a limit order is used. This should not be an issue in the Forex market. However, it is possible if you are trading a pair when both the currency markets that make turtle pair up are closed and your trading large amounts. The Turtles were taught to hold off turtle placing orders in fast moving markets. Most new traders will see a fast moving market and feel like they have to jump in using a market order or they trading miss the move. During a fast moving market, most of the market order will get filled at the worse possible price. It is always better to wait until the market has stabilized before placing your orders. Use forex limit order that will be filled as the price retraces. The following tests were conducted over the past four years and four months. The tests were conducted on several pairs but I forex the results to just the four major pairs. The reason for turtle is simple: If the pervious trade would have been a winning trade, then the most current breakout was ignored. The following results were obtained after testing the second set of entry rules. We only entered a trade at the 55 day breakout and every entry was taken. The stop loss was placed at 2N below the entry for long trades and 2N above the entry for short trades. The trade was exited at the 20 day breakout. All the tests were conducted using an account size of one million dollars. The spreads were taken into consideration as the following: Note to System Developers. Here is a note for those of you that are aspiring system developers and I hope that is everyone reading this report. Did you notice that the turtle system is a complete trading system? What I mean by forex is that the Turtle Trading tells the trader: The most profitable way to trade is to use a complete trading system. The turtle system was a complete trading system and that is why the original Turtles where able trading make money after just two weeks of training. The turtle system did not perform as well as I had anticipated. The first set of rules made an annual rate of return of 7. Trading second set of rules made Due to the trending nature of the Forex market, I was looking for large profits but there were none to be found. After the first few tests I reviewed the code to make sure that turtle was correct, and it was. Then, I pushed back the dates so that I could test over ten years thinking Forex was not testing enough data. Finally, I tested as many pairs as I could. I believe that the turtle system did not work as well in the Forex because this system was designed that be traded in a basket of commodities. Ideally, the commodities would not be correlative at all so that moves of one commodity would not effect the others. This independent movement would allow for profits from one trending commodity to off set losses in another commodity. If you want to trade the turtle system in trading Forex, you will need to find the pairs that are not correlative to each other. Then, you will need to turtle the 55 day breakout as it seemed to be the turtle profitable from our tests. I do believe that more research is needed on breakout forex in the Forex. For those of you that are interested in learning more about the Turtles and the turtle trading system, I highly recommend reading Way of the Turtleby Curtis M. This is a great book for traders and system developers alike. Trading that said, I do encourage you to read more about the Turtles and their system. And if nothing else, this experiment should give you confidence that you too can learn trading trade. After all, traders truly are MADE…not born. Forex Profit Alert for Strong Retail Forex for GBP. Enter your email address in the form below for instant access to Forex Daily Videos. Home Trader Resources Forex Brokers Platforms Strategies Systems Tutorials. Turtle Trading the Forex: Trading This Legendary System Hold Up? Following a trip to Asia where he visited a turtle farm of all thingsRichard made the comment: Buy long one pip above the breakout of the 20 day high. Sell short one pip below the breakout of the 20 day low. Forex long one pip above the breakout of the 55 day high. Sell short one pip below the breakout of the 55 day low. Exit for Entry 1: Sell one pip below the breakout of trading 10 day low. Buy to cover one pip above the breakout of the 10 day high. Exit for Entry 2: Sell one pip below the breakout of the 20 day high. Buy to cover one pip above the breakout of the 20 day low. Results The following tests were conducted over the past four years and four months. Markets — What buy and sell. Entries — When to buy and sell. Position Size — How much to buy or sell. Stops — Where to place your stop turtle. Exits — When to get out of a wining trade. 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