The Turtle Experiment, Part 2

Now that we know the background of the Turtle Experiment, conducted by Richard Dennis, we can delve in the details of the actual trading.

Dennis gathered his first fourteen “turtles” after placing an ad in a popular newspaper and began teaching them his rules – he taught his students a trend-following approach. The idea was that one should buy when there is a breakout above a range and sell when there is a breakout below a range.

The exact rules of Dennis’ strategy have remained a secret for a long time, but for the past decade or so some details have come to light:
-One should check prices for themselves rather than rely on the TV or newspapers for information (the experiment was conducted in 1983).
-One should be flexible when they set parameters for their buy and sell signals.
-One should plan their exit in the same detail as they plan their entry.
-Larger positions should be opened in less volatile markets and smaller positions should be opened in more volatile markets.
-One should not risk more than 2% of their account on a single trade.