Key Takeaways
- Started with $400 borrowed money at age 17
- Built a $200 million fortune trading commodities
- Created the legendary "Turtle Trading" experiment
- Proved that trading can be taught to anyone
- The Turtles made over $175 million in profits
The $400 Beginning
In 1966, a 17-year-old kid named Richard Dennis borrowed $400 from his family. He wasn't buying a car or saving for college. He was about to start trading commodities at the Chicago Mercantile Exchange.
There was just one problem — you had to be 21 to trade. So Richard did what any determined teenager would do: he got his father to stand in the trading pit and execute orders while he called them out from the sidelines.
That $400? He turned it into $200 million over the next two decades.
"I always say you could publish trading rules in the newspaper and no one would follow them. The key is consistency and discipline."
— Richard Dennis
Richard wasn't just lucky. He developed a systematic approach to trading that took all emotion out of the equation. While other traders panicked and made rash decisions, Richard followed his rules like a robot.
By his mid-twenties, people on the trading floor were calling him "Prince of the Pit" — and he was worth more than most would earn in ten lifetimes.
The Million Dollar Bet 🐢
In 1983, Richard Dennis had a debate with his longtime trading partner, William Eckhardt. The argument was simple but profound:
Eckhardt's View
"Great traders are born, not made. You can't teach talent."
Dennis's View
"Anyone can be taught to trade. It's about rules, not talent."
Richard was so confident that he proposed a real experiment: recruit random people, teach them his trading system in just two weeks, give them real money, and see if they could profit.
But why "Turtles"? 🐢
During this time, Richard had visited a turtle farm in Singapore where they bred turtles for profit. Watching rows and rows of baby turtles being raised, he had an epiphany:
"We are going to grow traders just like they grow turtles in Singapore."
— Richard Dennis
And so, the most famous trading experiment in history got its name.
The Turtle Selection
Richard placed an ad in the Wall Street Journal and Barron's. The response was overwhelming — over 1,000 people applied for what seemed like a fantasy: get trained by a legendary trader and manage his money.
Who made the cut? Not who you'd expect:
A Game Designer
Someone who understood systems and probability from video games
An Actor
Had zero finance experience but strong discipline
A Blackjack Player
Understood edge and could handle variance
A Teacher
No trading background, just curiosity
Richard deliberately picked people from diverse backgrounds — accountants, security guards, unemployed workers. His point was clear: if these random people could be taught to trade profitably, then trading was a skill, not an inborn gift.
The first class of 13 Turtles was selected in 1983. A second class of 10 was added in 1984. Together, these 23 traders would change the way the world thought about trading.
The Secret Turtle Rules 🔐
For 20 years, the Turtle Trading rules were kept secret. The Turtles signed NDAs and were sworn to secrecy. But in 2008, the original Turtle rules were finally published. Here's the core system:
Trade the Breakout
Buy when price breaks above the 20-day high. Sell when it breaks below the 20-day low. Simple as that.
Position Sizing
Risk only 2% of your account per trade. Use ATR (volatility) to calculate position size.
Pyramid Winners
Add to winning positions as the trade moves in your favor. Maximum 4 units per position.
Cut Losses Fast
Use a 2× ATR stop loss. No exceptions. No hoping. Just exit.
The Turtle Breakout System
The Turtles waited for price to break a 20-day high (or 55-day for the longer system), then entered with the trend. They used volatility-based position sizing to normalize risk across different markets. Dead simple, but devastatingly effective.
The genius wasn't in the rules — it was in the discipline to follow them. Richard knew that 95% of traders would look at these rules and think "that's too simple" or "I can do better." And that's exactly why it worked.
The Incredible Results
So did the experiment work? Let the numbers speak:
The Turtles achieved an average 80% annual return over the five-year experiment. Many went on to start their own hedge funds and became millionaires in their own right.
Richard Won The Bet
Trading could be taught. The "Turtles" proved that ordinary people with the right rules and discipline could become extraordinary traders.
Famous Turtles include Jerry Parker (Chesapeake Capital), Salem Abraham (Abraham Trading), and Curtis Faith (author of "Way of the Turtle") — all of whom became legendary traders in their own right.
The Turtle Philosophy
Beyond the rules, Richard taught his Turtles a mindset that separated them from 99% of traders:
Think in Probabilities
Any single trade might lose. But over 100 trades, the edge plays out. Don't obsess over individual trades.
Trade Like a Machine
Emotions destroy traders. Follow the rules mechanically. Remove your ego from the equation.
Let Profits Run
Most money is made in the big trends. Don't cut winners short. The goal is to catch the monster moves.
"Trade small because that's when you are as bad as you are ever going to be. Learn from your mistakes."
— Richard Dennis
Richard always emphasized that the biggest obstacle in trading is yourself. The rules are simple. Following them when you're scared, when you're greedy, when you think you know better — that's the hard part.
Lessons From The Turtle Master
Richard Dennis's legacy goes far beyond his $200 million fortune. He proved something that changed trading forever:
Trading is a skill that can be learned. You don't need to be born with it.
Start Small
Richard started with $400. The Turtles started with paper trading. Master the process before scaling up.
Follow Rules
Create a system and follow it religiously. The system doesn't need to be complex — it needs to be followed.
Accept Losses
Every trader loses. The Turtles had more losing trades than winning ones. But winners were bigger than losers.
Stay Humble
Even Richard had a $10 million loss in 1988. The market humbles everyone. Never stop learning.
The Turtle Legacy
Today, the Turtle Trading experiment is studied in universities, hedge funds, and trading desks around the world. It's become one of the most famous experiments in financial history.
Richard Dennis proved that with the right system, the right risk management, and the discipline to follow through, anyone can learn to trade.
The question isn't whether YOU can become a successful trader. Richard already proved you can.
The real question is: Will you have the discipline to follow the rules?
🐢 "Slow and steady wins the race. Trade your system. Manage your risk. Let time work for you." 🐢