Turtle Trading System
Dennis and Eckhardt’s taught breakout: System 1 (20-day entry / 10-day exit) and System 2 (55/20), ATR unit sizing, 2-ATR stops, and pyramiding.
Definition
Turtle Trading System refers to day entry / 10-day exit) and System 2 (55/20), ATR unit sizing, 2-ATR stops, and pyramiding. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When day entry / 10-day exit) and System 2 (55/20), ATR unit sizing, 2-ATR stops, and pyramiding shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what turtle trading system is saying. If day entry / 10-day exit) and System 2 (55/20), ATR unit sizing, 2-ATR stops, and pyramiding moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Turtle Trading System: what would falsify the current reading in the next window?