Monday, August 16, 2010

Way of a Turtle

1. Trade with an edge : Find a trading strategy that will produce positive returns over the long run because it has positive expectation.

2. Manage risk : Control risk so that you can continue to trade or you may not be around to see the benfits of a positive expectation system.

3. Be consistent : Execute your plan consistently to achieve the positive expectation of your system.

4. Keep it simple : The core of our approach is simple - catch every trend. Two or three trades might account for all your profits, so dont miss a trend or you might kill your whole year. This is simple and easy to understand, not easy to do.

Elements of an edge

-Portfolio Selection : The algorithms that select which markets are valid for trading on any specific day

-Entry Signals : The algorithms that determine when to buy or sell to enter a trade.

-Exit Signals : The algorithms that determine when to sell or buy to exit a trade.


p/s : Currently, I m reading Turtle-trading - Way of the turtle. It will be good with I have a SERIOUS partner or two to discuss what I m reading here. At times, one mind may mis-interpret(biased) what he/she read. The understanding of the contents might be mis-judged. Hence, any turtle(s) out there wanna share?

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