Curtis M. Faith

4.31273 learners

Based on Richard Dennis’ legendary Turtle Trading experiment, *Way of the Turtle* reveals how ordinary people were transformed into elite traders using a simple, rule-based system. The book breaks down core principles of trend following, including the Donchian Channel breakout strategy and two structured entry/exit systems. It emphasizes critical risk management techniques: using the Average True Range (ATR) to standardize position sizing, strict limits on position units, and a 2% maximum risk cap per trade. Beyond tactics, it delves into the psychological traps that derail traders—loss aversion, result bias, overconfidence—and teaches how to replace emotional decision-making with disciplined adherence to proven rules. Packed with real-world case studies, historical backtesting insights, and lessons on adapting to changing market states, this guide is a blueprint for consistent, long-term trading success, proving mastery lies in execution, not secret 'holy grail' strategies.

Michael W. Covel

4.11152 learners

Michael W. Covel’s *Trend Following* demystifies a time-tested trading strategy anchored in the core mantra: “cut losses short, let profits run.” Unlike traditional buy-and-hold investing or speculative guesswork, trend tracking focuses exclusively on price action, tuning out noise like fundamental analysis or expert predictions. Covel brings the strategy to life through legendary traders—from David Harding’s $300B AHL fund to Bill Dunn’s 40-year track record of outperforming during crises like the 2008 financial meltdown. He breaks down critical distinctions: separating speculation from passive investment, exposing the flaws of mainstream mutual funds, and explaining how behavioral finance reveals why trend tracking exploits human cognitive biases. Backed by 800 years of historical data and academic research, the book proves trend tracking delivers consistent absolute returns, reduces portfolio volatility, and thrives in extreme market conditions. It’s a practical guide for traders seeking to overcome emotional decision-making and build a disciplined, profitable approach to the markets.