The great power of the Turtle Trading System is the flexibility
of the money management rules
7. The Turtle system has very bad draw downs
Yep, it’s true. But the draw downs come
after a big run up in equity ie after it has done really really
well. Show me any good system that doesn’t go through
bad periods. It just doesn’t exist. It is a fundamental
law of economics, if you want to get a reward, you have to take
some risk. If you are not willing to take the risk, you are
don’t deserve to make anything. You can always go
put your money in treasury bills, at 2% interest. What is important
is that the risk and reward be commensurate with each other.
And for the given amount of risk, there is no greater
profit potential than the turtle trading system.
Of course, if you are not comfortable with the risk, you can
also reduce your leverage and trading size down to where you
can sleep at night. The great power of the Turtle Trading
System is the flexibility of the money management
rules, which are designed to let you choose your own
level of risk and reward, and to keep you in the game during
the rough periods. Hell, anybody with a computer these days
can figure out halfway decent buy and sell signals, it’s
money management that is most crucial.
