What is Turtle Trading? A Trend-Following Strategy for Crypto Investors

What is Turtle Trading? A Trend-Following Strategy for Crypto Investors

Jayden7/3/2025

1. Introduction to Turtle Trading

 

Turtle Trading is a trend-following strategy developed by Richard Dennis in the 1980s. He believed that anyone could become a successful trader by following a specific set of rules. To prove this, he trained a group of novices, called "the turtles," who went on to earn $175 million in five years.

 

2. How Turtle Trading Works

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  • Following market trends: Utilizing technical indicators like Moving Averages (MA) and Donchian Channels to identify entry and exit points.

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  • Strict risk management: Limiting risk to no more than 1% of capital per trade to protect against significant losses.

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  • Diversifying investments: Spreading investments across various sectors and ecosystems to minimize risk.

 

3. Application in the Crypto Market

 

In the cryptocurrency market, Turtle Trading helps investors identify trends using the 50-day MA. For instance, if Bitcoin's price rises above the 50-day MA, it may signal a buying opportunity; conversely, if it falls below, it may indicate a selling point.

 

4. Pros and Cons of Turtle Trading

 

Pros:

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  • Eliminates emotional decision-making.

  • Easy to implement for beginners.

  • Applicable across various markets.

 

Cons:

 

Requires high discipline and patience

May miss short-term trading opportunities.