Nobody downloaded yet

The turtle trading strategys profitability in the current market - Literature review Example

Comments (0) Cite this document
Summary
This paper discusses and undertakes a literature review on the turtle trading rule in its original form, including what its profitability is, and what the advantages and disadvantages of the rule are…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
The turtle trading strategys profitability in the current market
Read TextPreview

Extract of sample "The turtle trading strategys profitability in the current market"

Download file to see previous pages It is a complete trading system that is based on mechanical trading hinged on market price signals. The following aspects of the trades were all accounted for and covered by the rules: what to buy and what to sell, or the markets; how much of a particular market to sell or to buy, or the size of the position; the timing of the buying and the selling; the stops, or the timing of bailing out of positions where the trader is in a losing proposition; the exits, or the timing of the bailing out of positions where the trader is winning; and the selling and buying hows, which comprise the tactics for the trading exercises. Moreover, the turtles trading system focused on a number of trading instruments, all of them markets that are considered liquid. In the Chicago Board of Trade, the turtles traded in 30 year and 10 year Treasury bonds and notes. In the New York Exchange for Sugar and Cocoa, the turtles traded in cotton, coffee, sugar and cocoa. In the Chicago Mercantile Exchange, the turtles focused on a select group of currencies, which included the Japanese Yen, the Canadian Dollar, the British Pound, and the Swiss Franc. The list also included the S&P 500 Index of Stocks, as well as the 90 day US treasuries. In the Comex, the focus were gold, copper and silver. Finally, in the New York Mercantile Exchange, the focus were on unleaded gas, heating oil, and crude oil (Faith 2003, pp. 7-11; Carr 2009; Lauer 2007; Adamu and Phelps 2010; Anderson n.d.; FinanceManila 2007; Stockopedia Features 2011; Carr 2009; Business Insider 2013; Kasera n.d.; Au.Tra.Sy 2010; Faith 2003; TradingBlox.com n.d.; Powerstocks Research n.d.; Palantir Technologies 2012; Kowalski 2013; Power 2012; Trading Blox n.d.). The turtles trading system takes its cue from the highs in the prices for 22 days and for 55 days. There are two parts to the trading rules. In system 1, the trader assumes a long position on a market whenever the price goes beyond the high for the preceding 20 days. Conversely, the trader takes a short position whenever the price goes down below the low for the past 20 days. In the case of the last breakout resulting in a trade that is a win, the breakout signals are ignored. That said, the trader would record an entry on day 55, in order not to miss out on major moves in the markets. The exit for system 1 is when the price is a low for 10 days when the position is long, and the high for 10 days when the position is short. In system 2, the benchmark is 55 days, taking a buy position when the market price goes up beyond the high for the past 55 days, and a sell position when the market price goes below the low for the past 55 days. The exit signal for this system 2 mode is when the price is the low for the past 20 days for the long position, and the high for the past 20 days for the short position (Stockopedia 2013; Business Insider 2013; Kowalski 2013; Kasera n.d.; Au.Tra.Sy 2010; Carr 2009). An example makes the trading rules for the turtle trading system clear. In an instance where the price of a stock, say Nokia, goes up to a level that exceeds a hypothetical 20-day range of 3.40 US dollars on the high side, then that is a signal to buy. When the time comes, on the other hand, that the stock price dips below the low for a ten-day period, then that is the time to sell the Nokia stock. It is easy to see ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The turtle trading strategys profitability in the current market Literature review”, n.d.)
The turtle trading strategys profitability in the current market Literature review. Retrieved from https://studentshare.org/finance-accounting/1470531-the-turtle-trading-strategys-profitability-in-the-current-market
(The Turtle Trading Strategys Profitability in the Current Market Literature Review)
The Turtle Trading Strategys Profitability in the Current Market Literature Review. https://studentshare.org/finance-accounting/1470531-the-turtle-trading-strategys-profitability-in-the-current-market.
“The Turtle Trading Strategys Profitability in the Current Market Literature Review”, n.d. https://studentshare.org/finance-accounting/1470531-the-turtle-trading-strategys-profitability-in-the-current-market.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The turtle trading strategys profitability in the current market

Current Market Conditions Competitive Analysis

... With the proliferation of newly-founded fast-food companies worldwide, the competition in the food industry has become more intense and tight than ever. This development necessitates effective strategies and business procedures, which are particularly crucial for the success of a newly-founded fast food company. Being the largest fast food chain restaurant in the world today with 32, 000 restaurants in 119 countries worldwide, McDonald’s set the bar so high and turned the competition so fierce. Hence, as an amateur in the field of food merchandising, it is highly beneficial to come up with a comprehensive, detailed, and clear-cut competitive market analysis of the world’s largest fast food chain. For that reason, this paper shall... ...
5 Pages(1250 words)Essay

Apple Inc. Current market conditions

...). Distribution costs Apple has a number of Apple shops in major cities that sell its products. It also has a number of independent distributors to help in reaching a wider market. With regard to its distribution costs then, it can be said that Apple is doing very well and there are no specific ways to reduce the costs. Profit maximization Apple has been very good at maximizing its profits. Its profit maximization strategy can be seen in the following two things that Apple uses. Cost management: Apple has managed to cut its costs by large by exporting its manufacturing jobs to China where it is able to acquire cheap labor. By tapping this cheap labor, the...
7 Pages(1750 words)Essay

Automotive Manufacturing Industry: Market Share or Profitability

...business organization. Market Share vs. Profitability in the Manufacturing Industry The debate on whether the automotive manufacturing industry should focus on increasing its market share or pursuing profitability is quiet baffling. As stated with the industry expert Maryann Keller (2004), car manufacturers' objective should incorporate increasing market share to show its manufacturing capability supported by a cost structure to maximize profits at the current output level. However, past situations show that increases in market share does not necessarily mirror profitability and vice...
3 Pages(750 words)Essay

Current real estate market

...Your 16 December 2007 The Current Real E Market According to the Dallas Morning News For the purpose ofcompleting this assignment utilizing an approach that is of particular relevance to the generalized real estate appraisal field and in order to ensure adequate content and a wide variety of usable information, a major metropolitan area newspaper was selected: The Dallas Morning News. This distinct newspaper is available in both print and via the publisher’s worldwide website at www.dallasmorningnews.com. The printed version of the newspaper is relatively easy to navigate thanks to good quality formatting and titles and subtitles that are easy to distinguish from regular paragraph content, but the...
2 Pages(500 words)Essay

Current Market Conditions - Toyota

...Current Market Conditions – Toyota  Toyota is considered to be the largest automobile company in world whose sellings are over 8million models arcross the globe. Toyota positions not only among the topseller automobile companies but also has gained the customer satisfaction. Toyota is basically a Japanese car corporation. Toyota has been damaged due to the recent diminished in the price of U.S dollar. The main competitors of Toyota in the market today are General motors and Honda. General Motors is dominating the market since last 81 years. Honda fills major portion of automobile consumers also, which takes up to 17% of the market share alone. Toyota’s...
2 Pages(500 words)Essay

Profitability Measures

...Profitability Measures Q1. Company’s use profitability measures to assess how well they are managed. Companies withthe aim of making profits and surviving in the long-term have to use the best profitability measures if the best decision is to be made. Market capitalization and return on assets are the best profitability measures to use in assessing how best companies are managed. Market capitalization reveals the long-term profitability of the company and aims at maximizing the value of shareholders (Freberg & Boland, 2000). Maximizing the value of the firm is the major aim of firms. On the other hand, return on assets will show how efficiently and effectively the company’s assets have been used in increasing the company’s returns... . From...
1 Pages(250 words)Case Study

Fords Profitability

...Ford’s Profitability Task: Ford’s Profitability In this case, Ford has to employ external auditors; they are supposed to advise the company on its current market position in terms of its ranks and its best course of action. They should let the market control the price while they control the cost by obtaining all the analysis of its operational costs, which make 89.1% of total sales (Hargie, 2009). This will help in preparation of the budget while allocating funds to the most important activities and avoiding some of the costs that are considered less important. The company should engage the use of researchers. The research work will help in giving an...
1 Pages(250 words)Essay

The Turtle

...Insert Steinbeck’s Use of Personification in Portraying the Turtle It is true that many literary artists use different stylistic and literary devices, such as anthropomorphism or personification. Personification or anthropomorphism is the act of attributing human features and behaviors to nonhuman beings or entities. John E. Steinbeck, Jr. (1902- 1968), a renowned writer, uses personification in his literary work The Turtle. Steinbeck’s personification of the turtle is seen in the first instance he refers to the turtle by giving it the third party personal pronoun he and third party possessive pronoun. Throughout the entire narrative, Steinbeck refers to the turtle by using third party pronouns (Burns, 165). Personification... of the...
1 Pages(250 words)Essay

Profitability of Ford Motor Company

...FORDS PROFITABILITY Affiliation Ford motor company is one of the most well recognized American brands of automotives worldwide.This recognition gives it a competitive edge over its many competitors due to the fact that the brand recognition of the company is able to accord it some standing as far as product marketing is concerned. One of the strategies that Ford can adopt to raise profitability by reducing cost is by optimizing its supply chain. This may also be of greatest importance to the company. The first part of this is by finding ways in which it may reduce the costs that are associated with the receipt of raw materials and component parts. One of the ways in...
1 Pages(250 words)Essay

Old Turtle Story

...Number] “Old Turtle” by Douglas Wood Analysis Outline: Douglas Wood in the Old turtle toyed with theidea of presence of God on Earth and in each of his creation. Yet, his supreme creation has always been occupied with the debate on his presence, which has created chaos on Earth. Yet, Krantz calls this association as a result of tribal life style in the most natural environment, where presence of spirits, hunting, and sacredness of natural entities is essential phenomena; let it be Native Americans or people from Asian hemisphere. Simultaneously, nature would not be significant without humans and humans can’t nourish, survive and exist without Earth, they both are inevitable to each other. Thus, it is...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Literature review on topic The turtle trading strategys profitability in the current market for FREE!

Contact Us