Turtle Traders That Most Never Heard of
I recently gave a lecture and to my absolute shock most of the professional money managers and investors were not aware of the Turtles of Dennis and Eckhardt. I explained the story how Dennis & Eckhardt ran an add (I believe it was in the Wall Street Journal) and offered to teach traders their secrets. Actually their methodology was based on Richard Donchian and his break out system. Many of the turtles had tremendous up returns as well as tremendous draw downs. Draw downs which could exceed 50%. To most people this would destroy their self confidence but the turtles were taught not just trading rules but psychology. Even with the lessons in psychology some turtles did better than others and some even blew up.
Howard Seidler is an example of the turtles. He has had some great returns however he has had draw downs up to 65%. I really do not know many investors who can stomach draw downs like that. However what I personally do is watch managers like Howard Seidler’s CTA Saxon & when he has a substantial draw down I look to invest. This is not perfect as I bought the worst case draw down in one of Michael Clarke’s programs in Aug of last year and it continued with even worst case draw downs. I believe I am down approx 20% but the program is down in the mid 40%. You can never actually time a recovery and bare in mind your worst case draw down is always ahead of you. As much to this negative, I entered Michael Clarke’s worldwide program during a deep draw down last year and due to this I was up close to 60%. There is no gain without pain. I have a solid allocation to a my own programs, my joint programs with my colleagues plus I allocate to groups of commodity trading advisors that think the way I do about risk.
Look at Howard Seidlers returns that have been posted on Iasg.com. Do not think this is retirement in a box. You need to do your work and be disciplined and patient. If you can be disciplined and patient you stand the possibility of compounding your money over long periods of time.
Futures trading involves risk. People can and do lose money
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (”FOREX”) CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY FUTURES, OPTIONS, AND FOREX TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR (”CTA”). THE REGULATIONS OF THE COMMODITY FUTURES TRADING COMMISSION (”CFTC”) REQUIRE THAT PROSPECTIVE CLIENTS OF A CTA RECEIVE A DISCLOSURE DOCUMENT BEFORE THEY ENTER INTO AN AGREEMENT WHEREBY THE CTA WILL DIRECT OR GUIDE THE CLIENT’S COMMODITY INTEREST TRADING AND THAT FEES AND CERTAIN RISK FACTORS BE HIGHLIGHTED. IASG WILL PROVIDE YOU A COPY OF THE DISCLOSURE DOCUMENT AT NO COST. YOU SHOULD REVIEW THE CTA’S DISCLOSURE DOCUMENT AND STUDY IT CAREFULLY TO DETERMINE WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THE TRADING PROGRAMS DESCRIBED ON THIS WEBSITE NOR ON THE ADEQUACY OR ACCURACY OF THE CTA’S DISCLOSURE DOCUMENT. THE INFORMATION CONTAINED ON THIS WEBSITE HAS BEEN PREPARED BY IASG FROM SOURCES DEEMED RELIABLE, BUT IASG DOES NOT GUARANTEE THE ADEQUACY, ACCURACY OR COMPLETENESS OF ANY INFORMATION. NEITHER IASG NOR ANY OF ITS RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES MAKE ANY WARRANTY, EXPRESS OR IMPLIED, OF ANY KIND WHATSOEVER, AND NONE OF THESE PARTIES SHALL BE LIABLE FOR ANY LOSSES, DAMAGES, OR COSTS, RELATING TO THE ADEQUACY, ACCURACY OR COMPLETENESS OF ANY INFORMATION ON THIS REPORT.