1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Read Way of the Turtle by Curtis Faith

Discussion in 'Forex Discussions' started by painofhell, Oct 6, 2016.

  1. painofhell

    painofhell Content Contributor

    Jun 24, 2015
    Likes Received:
    I recent wrote a foreword for a book that I think is one of the top five trading books ever written. It's Curtis Faith's new book, Way of the Turtle. Curtis was one of the more successful traders in Richard Dennis' experiment to see if he could train good traders. And since I was part of the selection process, but never knew what happened once they started training, I was fascinated to get these insights.

    So why do I believe that it is one of the five best trading books ever written? First, it paints a very clear picture of what is necessary for trading success. Curtis says in very concise terms that it's not about the trading system. Instead, it's about the trader's ability to execute the trading system. During the initial training period, Curtis earned almost three times as much as the others combined, yet they'd all been taught to do the same thing.

    Think about it. Ten people who had all been taught a certain set of rules, including fixed position sizing rules, all produced different results. The answer as to why is, of course, that trading psychology produced the differences in the results. And Curtis really brings this point home in his book.

    The second really fascinating aspect of Way of the Turtle is that it probably has the most lucid description of how some of the principles of behavior finance apply to and influence trading that I've ever read. Curtis even goes into a lengthy discussion of support and resistance and why these exist because of inefficiencies in our decision making. It is must read material.

    The third aspect of the Way of the Turtle that I really like is Faith's emphasis on game theory and using it to explain how a trader should think. For example, he suggests that you concentrate on the present trading, forgetting the past and the future. Why should you do this? The reason is because you should know from your historical testing that you will probably be wrong most of the time in your trading. But you should also know that some of your gains will be huge which will result in a positive expectancy. Curtis tells the reader why they must understand and have confidence in the expectation of their system. And it's this confidence that will make them long term winners.

    Other excellent topics along the same lines include:

    • How the Turtles were trained and what they actually learned.
    • The real “secrets” of the Turtles (and I've already given you lots of clues).
    • An excellent discussion of the problems involved with system development and why people make mistakes in their system development because they don't understand basis statistical principles involved in sampling theory.
    • A superb discussion of why most systems fail to perform adequately. And even though most good systems are dropped for psychological reasons, there are also many bad systems out there that look good at first glance. So if you want to know why and how to spot them, then you must read this book.
    • And lastly, there is an interesting discussion of robust measures of systems. And if you understand this material, you will go a long way toward being able to design a long-term profitable system for yourself that will work.
    Put all of this together with a number of stories about Curtis' experiences as a Turtle, plus his amazing ability to synthesize his experiences as a trader and get to the essence of what is important making Way of the Turtle a must read for all traders or anyone who has even considered putting their money into the markets.

Share This Page