I read with interest a fairly detailed article about the turtle traders in the 1980's and their strategy of attempting to catch big trend moves in different markets. Initial stops would be 2x an exponential average of ATR. It seems to me their approach to the market was to suffer through many small losses waiting for a few "big" trades. Does anybody know what the typical win/loss ratio was for these guys? Must have been <20%. Seems like a psychologically challenging market approach.
Marketsurfer, The article I read is "The Turtle Story" at the top of your link. Does anybody know what their typical win/loss was?
I don't know what their results were but typical win pecentage for a trend following or vol breakout approach would be 30-40%.
Richard Dennis turned $400.00 into $400million in just 10 years using that system. They do ride out large drawdowns but the system was designed to manage $100k account and diversifies accross several markets. The strategy can be refined to manage account sizes as small as $3k!