“A swing trader following a style for nearly 3 years…”

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Good evening Michael,

I am a day trader with nearly 5 years experience and a swing trader following [name]’s style for nearly 3 years who has only recently learned of the Turtle Trading system in the last few months. I have read your book, The Complete Turtle Trader, and also [name], together with reading numerous blogs, and watching many YouTube Videos. I am interested in purchasing one of your training programs to go deeper; however, a simple question/misunderstanding remains in my mind after all the current reading I have done.

I don’t understand how “turtles” pyramid into a position with max size of 4N, adding a unit at each 1/2ATR above initial entry. I have attached a spreadsheet of “theoretical” trade in MS, based on one of my current profitable swing setups, buying retracement of EPS gap ups. The trade ultimately builds up to nearly 168% of account equity and carries 5% risk on full stop out. This appears to be extremely aggressive, and would not leave room for “diversification” as the account is nearly at full overnight margin of 2x equity on one position. I sincerely would appreciate a simple explanation of what I am missing/doing wrong. Finally, I am working through the resources you have linked on your site, and I am interested in your recommendation for the best training to pursue next to continue my development as a turtle!

Warmest Regards,
Jeff R.

To your question:

–Trend following is not unleveraged.
–Trend following is not day trading.
–Trend following is not straight stocks on typical margin.
–Trend following doesn’t use swing ups or retracements.

That is the start to the trend following education.

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