Published in 2007 by McGraw-Hill, Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders by Curtis M. Faith stands as a must-read for anyone serious about systematic trading. Whether you’re a beginner trying to break into the world of trading or a seasoned trader looking for insights into proven systems, this book offers a unique perspective. Curtis Faith, one of the original Turtle Traders chosen by Richard Dennis, delves into the inner workings of the famous experiment that turned novices into highly successful traders. Faith’s approach is analytical yet accessible, making complex topics understandable for traders at all levels.

Way of the turtle - curtis m faith

Curtis M. Faith Background

Curtis M. Faith was one of the youngest and most successful of the original Turtle Traders, a group mentored by Richard Dennis and William Eckhardt during the early 1980s. Faith’s participation in this experiment—designed to prove that anyone could be taught to trade successfully using systematic methods—helped him develop an in-depth understanding of market behavior, risk management, and system-based trading. Faith went on to build a successful trading career and authored several books, sharing the principles that helped him generate millions in the markets. His contributions continue to inspire traders who value systematic approaches to investing​​.

Summary of Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders

The book covers a wide range of topics aimed at demystifying the trading process and making it accessible to anyone:

  • The Turtle Trading Experiment: Curtis Faith shares detailed insights into the famous Turtle Trading experiment, explaining the rules, methodologies, and mindset behind the success of the participants.
  • Psychology of Trading: The importance of maintaining discipline and overcoming emotional biases is emphasized throughout the book.
  • System Development: Faith details how traders can develop their own robust systems, test them, and ensure they are profitable.
  • Risk Management: The book offers techniques for managing risk, including position sizing and adjusting for volatility.
  • Trade Execution: Faith explains how to implement trading rules without second-guessing, ensuring consistency and reliability.

Key Concepts and Strategies

Curtis Faith emphasizes several important lessons in Way of the Turtle:

  1. The Importance of Rules-Based Trading: Faith reveals how systematic trading, based on clearly defined rules, eliminates emotional decision-making and leads to more consistent profits. Traders must adhere to objective entry and exit points to avoid being swayed by market noise.

  2. Risk Management and Position Sizing: Faith’s Turtle Trading system shows that risk control is as crucial as identifying market opportunities. He teaches readers how to size positions based on market volatility and personal risk tolerance, ensuring that traders protect their capital at all times.

  3. The Psychology of Winning: Faith discusses the mental toughness required to stick to a system, even during inevitable drawdowns, which many traders struggle with. He stresses the value of backtesting as a confidence-building tool that can help traders trust their systems during challenging market periods​.

Practical Applications

Faith offers numerous actionable strategies in Way of the Turtle. He demonstrates how traders can:

  • Backtest their systems across multiple market cycles to identify robustness and reliability.
  • Position size according to volatility using a technique known as volatility-adjusted sizing, which allows traders to control risk consistently across different market conditions.
  • Employ trend-following systems that capture long-term market movements while minimizing the impact of short-term fluctuations​​.

These methods empower traders to approach the markets scientifically, relying on data and proven strategies rather than hunches.

Powerful Trading Quotes from Way of the Turtle

“The key to long-term success in the markets is surviving the short-term.”

“Systematic trading removes emotion from the equation, allowing you to focus on the process rather than the outcome.”

“Volatility is a trader's best friend, but only if it is managed properly.”

Personal Insights from Curtis M. Faith

Throughout the book, Faith shares anecdotes from his experience as a Turtle Trader, including the challenges of sticking to a system during times of doubt. His personal stories bring the lessons to life and make them relatable for readers who may be facing similar struggles in their own trading journeys. These insights not only offer motivation but also reinforce the importance of patience, discipline, and following the rules​​.

Conclusion

Way of the Turtle provides a thorough and compelling guide for traders of all levels who are seeking to master the art of systematic trading. Faith’s combination of personal experience, practical guidance, and theoretical knowledge creates a valuable resource for both beginners and advanced traders. Whether you are a discretionary trader looking to systematize your approach or someone entirely new to the markets, this book will offer tools and insights to improve your performance. Ideal for systematic traders, trend-followers, and those who want to overcome the emotional pitfalls of trading, Way of the Turtle is a timeless classic​​.

For those looking to expand their understanding of trading and improve their strategies, this book is a must-read. Buy it now on Amazon.

Other Great Trading Books

There are many great trading books which will help you accelerate your trading career. The following are books that we have reviewed and consider valuable additions to any systematic trader’s library.

Systematic Trading Books

General Trading Books

Risk Management Trading Books

Technical Analysis Trading Books

Fundamental Investing Trading Books

Psychology Trading Books

Amibroker Trading Books

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Adrian Reid Founder and CEO
Adrian is a full-time private trader based in Australia and also the Founder and Trading Coach at Enlightened Stock Trading, which focuses on educating and supporting traders on their journey to profitable systems trading. Following his successful adoption of systematic trading which generated him hundreds of thousands of dollars a year using just 30 minutes a day to manage his system trading workflow, Adrian made the easy decision to leave his professional work in the corporate world in 2012. Adrian trades long/short across US, Australian and international stock markets and the cryptocurrency markets. His trading systems are now fully automated and have consistently outperformed international share markets with dramatically reduced risk over the past 20+ years. Adrian focuses on building portfolios of profitable, stable and robust long term trading systems to beat market returns with high risk adjusted returns. Adrian teaches traders from all over the world how to get profitable, confident and consistent by trading systematically and backtesting their own trading systems. He helps profitable traders grow and smooth returns by implementing a portfolio of trading systems to make money from different markets and market conditions.