Ask Colin

You have said that the "turtles" system pyramiding rules are not public knowledge. Please clarify.

The "turtles" trading system is taught by Russell Sands, who was one of the original turtles - a group of traders who were trained in a trading system as an experiment to see whether good traders could be taught or whether they were born. The experiment proved that they could be taught and the turtles as a group were very successful.

Although they were sworn to secrecy, Russell Sands has broken ranks and been teaching his version of the turtles trading system for some years. He charges a lot of money for the seminars.

Over the years, some details have seeped out. Indeed, I have attended a presentation in which Russell told us the basic shape of the system. He did not tell us the exact length of the time envelope he uses. Also, he did not tell us the pyramiding rules. You have to pay for the seminar to get this information.

The problem with the turtles system is that it can involve long strings of losing trades and significant drawdowns. The way this is balanced over time into a profitable system is that when they get a good trade, they "trade the daylights out of it". This is done by pyramiding.

So, clearly, the pyramiding rules are a key part of the system and it is not surprising that Russell wants to be paid to disclose them.