A:

The "turtles" was a nickname given to a group of traders who were a part of an experiment run by two famous commodity traders.

In 1983, Richard Dennis and Bill Eckhardt pondered the idea of whether being a great trader was a genetic predisposition or whether it could be taught. Dennis believed that one could be trained while Eckhardt thought it was an innate skill. In order to settle this bet they recruited a group of 10 to 15 individuals with little trading experience and taught them a trading system that made Dennis and Eckhardt famous in the industry.

After the trading system was taught to the individuals they were each given a funded account, as high as $2 million, to trade based on the rules taught to them. Over time it became clear that Dennis won the bet as these traders generated average annual returns of up to 80%. It was clear that becoming a great trader was more of a learned skill than one you are born with.

Based on a 1989 Wall Street Journal article, the turtle nickname arose from a trip that Richard Dennis took to Singapore. Dennis was quoted in the article as saying, "We are going to grow traders just like they grow turtles in Singapore."

To learn more about trading, see Survive the Trading Game and our Basics of Trading Systems tutorial.

RELATED FAQS
  1. What are the best technical indicators to complement a Turtle Channel?

    Learn how two additional technical indicators can be used to complement a trading strategy designed for use with the turtle ... Read Answer >>
  2. Why is a Turtle Channel important for traders and analysts?

    Understand the significance of the turtle channel indicator and the primary purposes that it serves for traders and market ... Read Answer >>
  3. What is the Turtle Channel formula and how is it calculated?

    Learn the simple formula for creating the turtle channel indicator and understand how the turtle channel is used by traders ... Read Answer >>
  4. How do I implement a Forex Signal System into a forex trading strategy?

    Learn how traders use different types of forex signal systems such as trend-based or range-based to create or supplement ... Read Answer >>
  5. What are some ways to reduce downside risk when holding a long position?

    Learn about the various methods a trader can use to minimize risk of loss or protect a portion of profits in an existing ... Read Answer >>
Related Articles
  1. Trading

    Turtle Trading: A Market Legend

    In 1983, an expert trader decided to coach 14 novice traders. The results were astounding.
  2. Trading

    Trading Systems: Run With The Herd Or Be A Lone Wolf?

    Find out if taking the path less traveled will work in your favor - or against it.
  3. Investing

    Here's How Denny's Is Turning Its Business Around

    For years, restaurant chain Denny's has been a bit hard to classify. The company, which calls itself "America's Diner," tends to offer better value than most sit-down chains, but it's more expensive ...
  4. Managing Wealth

    Is Pressing The Trade Just Pressing Your Luck?

    Scaling up into a trade can be a lucrative strategy, but you need to understand the risks involved.
  5. Personal Finance

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  6. Personal Finance

    5 Skills That Traders Need

    There are many routes to becoming a professional trader, but these five skills will help you get there.
  7. Investing

    The Top 5 Small Cap Restaurant Stocks for 2016 (BLMN,DENN)

    Learn about the market conditions that could help continue pushing restaurant stocks higher in 2016 and the five small-cap restaurants that are worth a look.
  8. Trading

    How Much Trading Capital Do Forex Traders Need?

    Even a small pip profit can mean substantial percentage returns over time.
  9. Financial Advisor

    The Cold, Hard Facts Behind Funding Your Retirement

    Most people, depending on which side of retirement they’re on, feel they either won’t ever be able to retire or stay retired once they are. Many of us watched our parent’s generation put their ...
RELATED TERMS
  1. Turtle

    A nickname given to a group of traders who were a part of an ...
  2. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  3. Small Trader

    An options or futures trader holding or controlling positions ...
  4. Position Trader

    A type of stock trader who holds a position for the long term ...
  5. Trader

    An individual who engages in the transfer of financial assets ...
  6. Forex Signal System

    A set of analyses that a forex trader uses to determine whether ...
Hot Definitions
  1. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated tariffs to encourage economic activity ...
  2. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  3. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  4. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  5. Sharpe Ratio

    The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such ...
  6. Death Taxes

    Taxes imposed by the federal and/or state government on someone's estate upon their death. These taxes are levied on the ...
Trading Center