Author of strategy:
Richard J. Dennis: a commodities speculator once known as the "Prince of the Pit,"was born in Chicago, in January, 1949. In the early 1970s, he borrowed $1,600 and reportedly made $200 million in about ten years. When a futures trading fund under his management incurred significant losses in the stock market crash of 1987 he retired from trading for several years.He has been active in Democratic and Libertarian political causes, most notably in campaigns against drug prohibition.
William Eckhardt: is a commodities and futures trader and fund manager. He began trading in 1974 after four years of doctoral research at the University of Chicago in mathematical logic.
In 1991 he founded Eckhardt Trading Company ("ETC"): an alternative investment management firm, specializing in the trading of global financial futures and commodities, which manages over $1 billion in managed accounts, domestic and offshore products. The firm's international clientele includes "fund of funds", corporate, private, and institutional investors.
Having a strong analytical and mathematical background, Eckhardt believes that the correct application of statistics and mathematical concepts is key for successful trading. However, he highlights the difficulties in using these concepts, mentioning that "the analysis of commodity markets is prone to pitfalls in statistical inference, and if one uses these tools without having a good foundational understanding, it’s easy to get in trouble".
Prior to founding ETC, Eckhardt was also involved in the Turtle Trading experiment,set up by partner, friend and fellow trader Richard Dennis. The goal of that experiment was to settle a philosophical disagreement between the two partners, to determine whether the skills of a successful trader could be reduced to a set of rules (i.e. can trading be taught?). The experience was overwhelmingly successful with novice traders ending up making $100 million.
Rule:
Time Frame: Weekly
Tool: MA(22) MA(55)
Signal:
Buy if an asset’s 22-week closing simple moving average crosses over
its 55-week closing moving average.
Sell if an asset’s 22-week closing simple moving average crosses under
its 55-week closing moving average.
Exit :
Exit Buy if an asset’s 22-week closing simple moving average crosses under
its 55-week closing moving average.
Exit Sell if an asset’s 22-week closing simple moving average crosses over
its 55-week closing moving average.
Backtest( WIN 75%)
SOURCE: "The Slow Turtle"( Richard Dennis VS William Eckhardt ) Famous Strategy
Richard J. Dennis: a commodities speculator once known as the "Prince of the Pit,"was born in Chicago, in January, 1949. In the early 1970s, he borrowed $1,600 and reportedly made $200 million in about ten years. When a futures trading fund under his management incurred significant losses in the stock market crash of 1987 he retired from trading for several years.He has been active in Democratic and Libertarian political causes, most notably in campaigns against drug prohibition.
William Eckhardt: is a commodities and futures trader and fund manager. He began trading in 1974 after four years of doctoral research at the University of Chicago in mathematical logic.
In 1991 he founded Eckhardt Trading Company ("ETC"): an alternative investment management firm, specializing in the trading of global financial futures and commodities, which manages over $1 billion in managed accounts, domestic and offshore products. The firm's international clientele includes "fund of funds", corporate, private, and institutional investors.
Having a strong analytical and mathematical background, Eckhardt believes that the correct application of statistics and mathematical concepts is key for successful trading. However, he highlights the difficulties in using these concepts, mentioning that "the analysis of commodity markets is prone to pitfalls in statistical inference, and if one uses these tools without having a good foundational understanding, it’s easy to get in trouble".
Prior to founding ETC, Eckhardt was also involved in the Turtle Trading experiment,set up by partner, friend and fellow trader Richard Dennis. The goal of that experiment was to settle a philosophical disagreement between the two partners, to determine whether the skills of a successful trader could be reduced to a set of rules (i.e. can trading be taught?). The experience was overwhelmingly successful with novice traders ending up making $100 million.
Rule:
Time Frame: Weekly
Tool: MA(22) MA(55)
Signal:
Buy if an asset’s 22-week closing simple moving average crosses over
its 55-week closing moving average.
Sell if an asset’s 22-week closing simple moving average crosses under
its 55-week closing moving average.
Exit :
Exit Buy if an asset’s 22-week closing simple moving average crosses under
its 55-week closing moving average.
Exit Sell if an asset’s 22-week closing simple moving average crosses over
its 55-week closing moving average.
Backtest( WIN 75%)
SOURCE: "The Slow Turtle"( Richard Dennis VS William Eckhardt ) Famous Strategy
