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reeder1558
Posted : Friday, April 20, 2012 9:27:36 PM
Registered User
Joined: 4/9/2011
Posts: 12

I recently saw a brochure on turtle trading. The entire system seems to be designed for commodity trading; however, in reading posts it appears that some of you are using the system with stocks. In computing Unit Size what do you use for Dollars Per Point? The formula in the brochure is

unit size = (0.01 * portfolio value) / (ATR * Dollars Per Point)

Dollars per Point in the formula is the value of the futures contract being traded.

Thanks for any help any of you can give

Richard

fpetry
Posted : Monday, May 7, 2012 7:48:13 PM
Registered User
Joined: 12/2/2004
Posts: 1,775

Really should read the book on the system, The Complete Turtle Trader by Michael Covel.  Book goes into specifics, much detail, the method's history, etc., truly great story.  Author Covel and other interviews of original Turtles all state that the method can be used with any financial instrument even though originally used for futures/commodity trading.  In a nutshell the method buys breakouts with small pilot buy, then adds vigorously as price increases (up to a point, and with constantly adjusted stops).  One of the great lessons for all traders is that the method proved that truly outstanding profits can result from high failure rate of winning vs. losing trades.  I think it was along the lines of 5+ losing trades for every 1 winning trade.  Excellent book.  Covel has a website devoted to the turtle method (trend followng) and at one time one of the original turtles had a website detailing the method.  Was closely guarded secret for quite a while.

Jpetesmith
Posted : Tuesday, May 8, 2012 12:32:32 AM
Registered User
Joined: 5/9/2010
Posts: 144

Fpoetry, thank you for sharing that tidbit of Historical Insight. It sounds like a fun, and I plan on looking into that. 

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