The Original Turtle Traders
Discover the legendary trading experiment that turned complete novices into millionaire traders in just two weeks. Follow the incredible journeys of Richard Dennis's proteges and learn where these trading legends are today.
The Great Trading Experiment
In 1983, commodity trading legend Richard Dennis made a bet with his business partner William Eckhardt. Dennis believed that great traders could be taught, while Eckhardt argued that trading was an innate skill. To settle the debate, Dennis decided to recruit complete novices and teach them his trading methods.
Dennis placed newspaper ads seeking applicants, eventually selecting 23 individuals from over 1,000 candidates. These recruits became known as the "Turtle Traders" - named after turtle farms Dennis had visited in Singapore, representing the idea that traders could be "grown" like turtles.
The Stakes:
Dennis gave each Turtle between $500,000 to $2 million to trade, with the agreement that they would follow his rules exactly and split the profits.
The Turtle Rules
System 1 (S1)
Enter on 20-day breakout, exit on 10-day breakout in opposite direction
System 2 (S2)
Enter on 55-day breakout, exit on 20-day breakout in opposite direction
Position Sizing
Risk 2% per trade using True Range-based position sizing
The Turtle Timeline
The Recruitment
Richard Dennis places newspaper ads and selects 23 candidates from over 1,000 applicants. The chosen few include college graduates, a security guard, and even an auditor.
Training Complete
After two weeks of intensive training, the Turtles begin trading with real money. Each receives between $500K-$2M in capital to manage.
Experiment Ends
The official Turtle program concludes after four years. The group collectively earned over $175 million, proving Dennis's theory correct.
Going Independent
The Turtles scatter to pursue their own trading careers, fund management companies, and various business ventures across the globe.
Where Are The Original Turtles Today?
Curtis Faith
The Star Turtle
Youngest Turtle at 19, earned over $30M for Dennis. Now runs Accelerated Trading and wrote "Way of the Turtle." Active in algorithmic trading and system development.
Jerry Parker
Most Successful Alumni
Founded Chesapeake Capital in 1988, managing over $2.5 billion at its peak. One of the most successful CTAs using trend-following strategies derived from Turtle methods.
Paul Rabar
The Steady Performer
Founded Rabar Market Research, providing systematic trading strategies to institutional clients. Known for his disciplined approach to risk management.
Liz Cheval
First Female Turtle
Started EMC Capital Management, focusing on managed futures. Pioneered risk parity approaches in commodity trading before retiring from active management.
Michael Cavallo
The Innovator
Founded Cavallo Trading, adapting Turtle principles to modern electronic markets. Specializes in currency and fixed-income systematic strategies.
Howard Seidler
The Educator
Transitioned to trading education and consulting. Teaches systematic trading principles at various institutions and provides training to hedge funds.
Other Notable Turtle Alumni
Russell Sands
Became a prominent trading educator, wrote several books on Turtle trading methods, and conducted seminars worldwide before retiring.
Michael Shannon
Founded multiple trading firms and became a successful private equity investor, applying systematic approaches to various asset classes.
Tom Shanks
Started Hawksbill Capital Management, focusing on managed futures and commodity trading advisors using trend-following systems.
Jeff Gordon
Left trading to pursue business ventures in technology and real estate, applying the risk management principles learned as a Turtle.
The Turtle Legacy
Combined earnings during the 4-year experiment period
Average annual compound return achieved by top performers
Number of original Turtles still involved in financial markets
The Proof Is in the Performance
The Turtle experiment conclusively proved that trading can be taught. Most Turtles significantly outperformed the S&P 500, and many went on to manage billions in institutional capital using systematic trend-following approaches.
Turtle Principles in Modern Trading
Systematic Approach
Modern algorithmic trading firms still use Turtle-inspired breakout systems, adapted for electronic markets and higher frequencies. The core principle of following trends remains unchanged.
Risk Management
The Turtle position sizing methodology based on volatility (True Range) is now standard practice in institutional trading. Many risk management systems trace their origins back to Turtle principles.
Managed Futures Industry
The $340 billion managed futures industry owes much to the Turtle experiment. Many CTA firms today use variations of Turtle trading rules as their core strategies.
🔗 Continue Your Turtle Trading Education
Explore our in-depth analyses on the Turtle Trading system and its modern applications:
- • Does Turtle Trading Work in Forex? - A deep dive into adapting the strategy for currency markets.
- • Turtle Trading Indicators Explained - Master the Channels, ATR, Breakouts, and more.
- • Is the Turtle Trading System Dead or Still Profitable? - An updated profitability analysis.
- • The Trend Trading Myth - Understanding why following the herd can lead to losses.
Timeless Lessons from the Turtles
✅ What Made Them Successful
- • Strict adherence to systematic rules
- • Disciplined risk management (2% rule)
- • Emotional detachment from trades
- • Focus on trend-following principles
- • Patience to let winners run
- • Quick acceptance of small losses
- • Diversification across markets
❌ Common Failures
- • Deviating from the original system
- • Emotional interference with trades
- • Inadequate capitalization
- • Lack of psychological preparation
- • Overconfidence after early success
- • Failure to adapt to changing markets
- • Ignoring risk management rules
The Ultimate Turtle Lesson
"Good traders can be made through proper training, but they must have the discipline to follow systematic rules and the emotional control to execute without hesitation. The markets will always provide opportunities - the question is whether you have the skills to capture them."
- Richard Dennis