Turtle

DEFINITION of 'Turtle'

A nickname given to a group of traders who were a part of an 1983 experiment run by two famous commodity traders, Richard Dennis and Bill Eckhardt. The goal of the study was to prove whether being a great trader was a genetic predisposition or whether it could be taught. Dennis believed that a person could be trained while Eckhardt thought it was an innate skill.

BREAKING DOWN 'Turtle'

To test the idea, a trading system was taught to the participants in the research group (consisting of 10 to 12 individuals), where each were given a monetary amount - as high as $2 million - to trade. Over time it became clear that Dennis was correct in stating a person can learn to be a great trader as the research-group traders generated average annual returns of up to 80%.

The title, turtles, was based on a 1989 Wall Street Journal article, where Dennis was quoted as saying, "We are going to grow traders just like they grow turtles in Singapore."

RELATED TERMS
  1. Small Trader

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

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

    A investor who attempts to profit by making rapid trades intraday. ...
  4. Genetic Engineering

    The artificial modification of an organism’s genetic composition. ...
  5. Head Trader

    The manager of a trading business. He or she is responsible for ...
  6. Commodity Trader

    Unlike stock traders, who buy and sell equities, commodity traders ...
Related Articles
  1. Trading

    The World's 10 Most Famous Traders Of All Time

    A review of the most famous and infamous traders in history.
  2. Financial Advisor

    A Day In The Life Of A Day Trader

    Day trading has many advantages and, while we often hear about these perks, it's important to realize that day trading is hard work.
  3. Markets

    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. Trading

    What Type Of Forex Trader Are You?

    Timing may be the key to uncovering your true strength as a forex trader.
  5. Trading

    How Much Trading Capital Do Forex Traders Need?

    Even a small pip profit can mean substantial percentage returns over time.
  6. Markets

    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.
  7. Financial Advisor

    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.
  8. Trading

    An Introduction To Day Trading

    This article will take an objective look at day trading, who does it and how it is done.
  9. Trading

    Are You a Trend Trader or a Swing Trader?

    Swing traders and trend traders execute market timing strategies that require different skill sets.
  10. Trading

    Forex: Money Management Matters

    Currency trading offers far more flexibility than other markets, but long-term success requires discipline in money management.
RELATED FAQS
  1. Who or what are the turtles?

    The "turtles" was a nickname given to a group of traders who were a part of an experiment run by two famous commodity traders. ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. How do I use a Turtle Channel to create a forex trading strategy?

    Learn two simple forex trading strategies, one trend trading strategy and one swing trading strategy, that can be implemented ... Read Answer >>
  5. What is a common strategy traders implement when using a Turtle Channel?

    Discover the specific trading strategy originally created by Richard Donchian to be used in conjunction with the turtle channel ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center