Welcome to TrendFollowingWorks.com

We will help you learn Trend Following by showing you the Turtle rules with data. Trend Following will help you increase your gains and minimize your losses for successful and consistent trading. We are here to help those that need more information before they are ready to purchase a Trend Following system with coaching, invest in backtesting software or decide on the Trend Following Firm that best suits their objectives.

If you just started your Trend Following education, visit the What is Trend Following? page first. If you are already familiar with Trend Following, visit our Products page.

The Turtle Rules used in our products are as follows:

Market - While the Turtles traded Futures, the main criteria for any market is liquidity and consistency. Other criteria included limitation of positions due to correlated markets and the use of available leverage.

Entry - The Turtles had the option of 2 systems or a mixture. System 1 entered long at a 20 day high and entered short at a 20 day low. System 2 entered long at a 55 day high and entered short at a 55 day low. Each time the price hit a trigger, they opened a position even if recently stopped out of a similar position.

Position - The Turtles used volatility and risk based position sizing. They used a 20 day moving average of the True Range or 20 day ATR to measure volatility. This is the average daily price movement of the market and was called N. Position sizing was determined by not losing more than the set risk percentage (1% or 2%) if the trade stopped out at 2 times N. Basically, the number of shares, contracts, or lots were purchased so that a single trade would not lose more than the 1% or 2%.

Tactics - Positions were added through pyramiding. If the price moved to the next N, they added an additional position and moved the stop so the risk remained the same. This helped protect profits and allowed gains to multiply. The number of positions were also limited across a single market or correlated markets.

Stops - Stops were set at 2 times N of the entry price. Stops are critical to keeping losses to a minimum although the majority of trades may be losing trades. The many small losses are countered by the fewer yet much larger gains.

Exit - System 1 exited the long position at a 10 day low and exited the short position at a 10 day high. System 2 exited the long position at a 20 day low and exited the short position at a 20 day high.

For a detailed look at the Turtle Rules and more variables involved, see our Trend Following books and movies page.

Use our products to understand the principles behind Trend Following. Once your foundation is established and you've found your edge, create your strategy and backtest it, purchase a system with coaching, or find a Trend Following firm. Start making money in the market with better returns by trading with an edge, managing risk, being consistent and keeping it simple. View our Products and see how Trend Following works.