Chapter 8
1. Burns, “Financial on the Move.”
2. “Dennis Trading Group, Inc: At a Glance,” The Barclay Group, 4th Quarter (1998).
3. Julia Flynn Siler, “A Commodity Trader Fares Poorly in Funds,” New York Times, April 26, 1988.
4. Scott McMurray, “Personal Finance (A Special Report): No Future-Safety in Numbers?” Wall Street Journal, October 19, 1990.
5. Michael Abramowitz, “Dennis Faces Doubts After Drexel Debacle,” Washington Post, September 1, 1991, p. H1.
6. “Judge Approves Dennis Pact,” New York Times, November 11, 1990.
7. Szala, “Once a Trader.”
8. See www.turtletradingsoftware.com, March 14, 2005.
9. Collins audiotape interview with Richard Dennis.
Chapter 9
1. Trading Places.
2. McRae, “Top Traders.”
3. Mclntire School of Commerce, University of Virginia. McIntire now, Spring 2002.
4. Trading Systems Review, FIA Futures and Options Expo Audio.
5. Szala, “Even Without Dennis, ‘Turtles’ Still Keeping Apace.”
6. Carla Cavaletti, “Turtles on the Move; Former Students of Rich Dennis; Managed Money,” Futures, vol. 27, no. 6 (June 1998), 76.
7. See lacm-usvi.com.
8. Cavaletti, “Turtles on the Move.”
9. Burns, “Financial on the Move.”
10. Jack Reerink, “Turtle Bisque; Money Management Experts Educated by Richard Dennis.” Futures, vol. 24, no. 5 (May 1995), 60.
11. “Dealing with the Challenge of Unfavorable Markets Strategies and Methods CTAs Apply in Difficult Trading Environments,” The Barclay Group, 4th quarter (1993).
12. Ginger Szala, “Trader Profile: Tom Shanks: Former ‘Turtle’ Winning Race the Hard Way,” Futures, vol. 20, no. 2 (1991), 78.
13. Reerink, “Turtle Bisque.”
14. Elizabeth Anne Cheval, “MFA Journal Encore: Why Choose High Volatility Trading?” EMC Capital Management, vol. 9, issue 1 (1994).
15. Cheval, “MFA Journal Encore.”
16. “What’s in Store for 1991?” The Barclay Group, 1st Quarter (1991).
17. See www.jwh.com.
18. Michael W. Covel, Trend Following: How Great Traders Make Millions in Up or Down Markets (New York: Prentice Hall, 2004).
19. Cavaletti, “Turtles on the Move.”
20. Reerink, “Turtle Bisque.”
21. McRae, “Top Traders.”
22. Ibid.
Chapter 10
1. Szala, “Once a Trader.”
2. Burns, “Rich Dennis: A Gunslinger No More.”
3. Michael Fritz, “Richard Dennis: He’s Baaaaaack—A Quiet Return for Futures Exile,” Crain’s Chicago Business, vol. 18, no. 50, sec. 1 (December 11, 1995), 1.
4. “Dennis Trading Group, Inc: At a Glance.”
5. Michael Abramowitz, “Dennis Faces Doubts After Drexel Debacle,” Washington Post, September 1, 1991, p. H1.
6. Fritz, “Richard Dennis: He’s Baaaaaack.”
7. Laurie Cohen, “Promotion for Seminar on Futures Trading Secrets Not Telling All,” Chicago Tribune, August 30, 1992, Bus 1.
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid.
12. Ibid.
13. Ibid.
14. Collins audiotape interview with Richard Dennis.
15. Dennis Trading Group, Inc: At a Glance.”
16. Ibid.
17. Burns, “Rich Dennis: A Gunslinger No More.”
18. Daniel A. Strachman, “Trader Profile: Back from the Bottom of the Pit,” Financial Trader.
19. Andrew Osterland, “For Commodity Funds, It Was as Good as It Gets,” Business Week, September 14, 1998.
20. Peter Coy and Suzanne Woolley, “Failed Wizards of Wall Street,” Business Week, September 21, 1998.
21. Diane Kruegar, “Managed Money Review: Richard Dennis Closes Shop — Again,” Futures (November 2000).
Chapter 11
1. David Nusbaum, “Charles Faulkner: Mind Reader,” Futures, vol. 22, no. 12 (November 1993), 98.
2. Koy, The Big Hitters.
3. “Technical vs. Fundamental: How Do Traders Differ?” The Barclay Group, 3rd Quarter (1991).
4. Ginger Szala, “Trader Profile: Tom Shanks: Former ‘Turtle’ Winning Race the Hard Way,” Futures, vol. 20, no. 2 (1991), 78.
5. Jerry Parker, Chairman of VCAP. April 18, 2005, www.vcap.org.
6. Malcolm Gladwell, “The Talent Myth,” The New Yorker, July 22, 2002.
7. Carol Hymowitz, “Nation’s Top Chief Executives Find Path to the Corner Office Usually Starts at State University,” Wall Street Journal, September 18, 2006, p. B1.
8. “What Does It Take to Be an Entrepreneur?” Under 25, Summer 1993.
9. Greg Farell, “Does Harvard ‘Brand’ Matter Anymore? 1980 Grads Reflect on What They Learned,” USA Today, June 7, 2005.
10. McIntire School of Commerce, University of Virginia. McIntire now, Spring 2002.
11. McIntire School of Commerce, McIntire now.
12. “Roundtable: The State of the Industry II,” Managed Account Reports, Inc., no. 257 (July 2000), 8.
13. “Roundtable: The State of the Industry,” Managed Account Reports, Inc., No. 256 (June 2000).
14. Ibid.
15. McIntire School of Commerce, University of Virginia, McIntire now. Spring 2001, 17.
16. Ibid.
17. Disclosure Document of Chesapeake Capital Corporation, March 29, 1999.
18. “Technical vs. Fundamental: How Do Traders Differ?” The Barclay Group, 3rd Quarter (1991).
19. FIA Futures and Options Expo Audio, Trading Systems Review, Friday, November 8, 2002.
20. Ibid.
21. Ibid.
22. Ibid.
23. “Roundtable: The State of the Industry II,” Managed Account Reports, Inc.
24. Allan Sloan, “Amaranth’s Wilting Is a Lesson on Hedges,” Washington Post, September 26, 2006, p. D2.
25. Nathan Slaughter and Paul Tracy, “Profiting from Mean Reversion.” See www.streetauthority.com, February 21, 2006.
26. FIA Futures and Options Expo Audio.
27. FIA Futures and Options Expo Audio.
Chapter 12
1. Button, “A Turtle’s Take.”
2. Collins audioTape interview with Richard Dennis.
3. Ibid.
4. See www.turtletradingsoftware.com, April 12, 2005.
5. Ibid.
6. See www.originalturtles.org, 2003.
7. Collins Audiotape Interview with Richard Dennis.
8. See www.turtletradingsoftware.com, February 13, 2004.
9. Ibid.
10. See www.turtletradingsoftware.com, August 19, 2004.
11. Paul Barr, “New Futures Fund Rolls at Acceleration Capital,” Hedge-World Daily News. May 20, 2004.
12. Ibid.
13. See www.turtletradingsoftware.com, July 24, 2003.
14. Commodity Futures Trading Commission. See www.cftc.gov/opa/enf06/opa5211–06.htm, August 8, 2006.
Chapter 13
1. Ginger Szala, “Top Traders Who Tamed the Rough and Tumble Markets of 1993,” Futures, vol. 23, no. 3 (March 1994), 60.
2. Mark Aronson, “Trading Advisor Review: Learning from a Legend,” Managed Account Reports, June 1997.
3. Diane Brady, “Yes, Winning Is Still The Only Thing,” Business Week, August 21, 2006.
4. Bill Deener, “Who Is This Man? And Why Is He Trading So Many Futures Contracts Out of Canadian, Texas?” Dallas Morning News, September 7, 2003.
5. Simon Romero, “A Homespun Hedge Fund, Tucked Away in Texas,” New York Times, December 24, 2003.
6. Jim Sogi, “The Killer Instinct.” See www.dailyspeculations.com, March 15, 2005.
Chapter 14
1. Art Collins, Market Beaters (South Carolina: Traders Press, Inc., 2004), pp. 190–91.
2. Michael J. Mauboussin, “Mauboussin on Strategy: A
re You an Expert?” Legg Mason Capital Management, October 28, 2005.
3. Ibid.
4. Atul Gawande, The New Yorker, January 28, 2002.
Appendix I: Where Are They Now?
1. Don Schultz, United States Chess Federation President’s Letter, January 17, 1997.
2. See en.wikipedia.org/wiki/William_Eckhardt_(trader).
3. See en.wikipedia.org/wiki/Doomsday_argument.
4. Reerink, “Turtle Bisque.”
5. Elise Coroneos, “Trading Advisor Review: Steadying the Ship,” Managed Account Reports, Inc., January 2004, p. 15.
About the Author
1. Michael Lewis, Liar’s Poker (New York: W. W. Norton & Company, October 1989).
Index
The pagination of this electronic edition does not match the edition from which it was created. To locate a specific passage, please use the search feature of your e-book reader.
Abraham, Salem, 174–86, 188, 189
background of, 174
career development, 175–82
Commodities Corporation and,181–82, 183–84
Dennis/Eckhardt instruction,182–84
entrepreneurial determination, 190
Jerry Parker and, 175–77
performance of, 174–75, 201
success after Turtle program,185–86
trader expectations, 70
Website, 197
where he is now, 191
Abraham, Malouf, 174
Abraham Trading Company, 175, 191, 201
Acceleration Capital, 169–70
ad, recruiting Turtles, –-3
allocation of trade monies, 113–28
Curtis Faith and, 114, 116–18, 120–23, 124–26
frustrations/jealousies over, 114–19
impacting earnings, 114
performance levels and, 123–26
perspectives on, 113–23
trading-level memo and, 127–28
Amaranth hedge fund, 163–64
average true range (N) or ATRbreakout variants and. See systems
(breakout variants)calculating, 80, 81
defined, 80
examples illustrating, 82–87
initial risk determination examples,86–87
logic behind, 80–81
pyramiding and, 87–92
unit limits and, 86
Aykroyd, Dan, 29
Babbitt, Bruce, 23
Baha, Christian, 249
baseball hitting analogies, 61, 68
Bennett, William, 24
Billionaire Boys Club (BBC),37–38
Blues Brothers quote, 167
Bork, Robert, 23
Bradley, Bill, 23
breakout variants. See systems(breakout variants)Bruck, Anthony, 101, 122, 137, 191
Buffet, Warren, 5, 42, 62, 189
C&D Commoditiesbirth and evolution, 19–22
office environment, 100-–03
Carr, Michaeladmiration of Rommel, 39
allocation of trade monies and,119
background of, 33, 40
end of Turtle program and, 137
getting Turtle job, 33, 39, 40–41
interview process, 39, 40–41
limited skills starting out, 101
performance of, 123, 203–5
S1, S2 and, 73
on Trading Places and Turtles, 30
where he is now, 192
Carroll, Larry, 19
Cato Institute, 24
Cavallo, Michaelallocation of trade monies and, 117, 118–19, 120–21
background of, 32
brilliance of, 47
on classroom training, 43, 45
on Curt Faith, 122
on Eckhardt/Dennis symbiosis, 46
end of Turtle program and, 135–36, 137
getting Turtle job, 32, 38–39, 40
interview process, 38–39
on Lucy Wyatt, 102
on office environment, 103
performance of, 114, 120, 123, 124, 205–-7
where he is now, 210
working long distance, 106
Chesapeake Capital, xii, 135, 139, 147, 155, 165, 197, 200. See also Parker, Jerry R.Chesapeake Capital Trading Room,160–62
Cheval, David, 125, 132, 167–68
Cheval, Liz
after Turtle program, 142, 210
allocation of trade monies, 119
end of Turtle program and, 137
entrepreneurial skills, 154
exit rule summary and, 94
getting Turtle job, 32, 39, 41
office environment and, 111
performance of, 123, 124, 207
on Russell Sands, 148
on success of Turtles, 167
trader expectations, 70
valuable trading lesson, 76–77
on volatility, 142
Website, 215
where she is now, 197–201, 210
Chicago Board of Trade (CBOT),18–19
classroom training, 43–50
challenge questions, 183–84
discussion, 57–66
emphasis on comparisons, 57
first class, 44–45
perspective on trading, 49–50
receptivity of trainees, 43
third Turtle class, 182–84
trading philosophy. See philosophyof trading
Union League Club and, 43–44
welcoming party before, 44
Cohen, Steven, 188
Conan Doyle, Sir Arthur, 51
confidentialitycontract, 41–42
Faith giving rules and, 168–69
Sands selling rules and, 147–50
contract, for Turtles, 41–42
Convexity Capital, 8
Cramer, Jim, xv, xvi, 104
Craven, Jonathan, 158–59, 165, 173
Crocker, Elaine, 181
Davies, Nigel, 99
Dellutri, Dale, 36, 37, 39–40, 44, 127, 128, 197
DeNardo, Sam, 99, 113, 126, 137, 149, 150
Dennis, Richardbaseball and, 14, 21, 43
broad influence of, 7–-8, 17–18
college education, 11, 12
commitment to “nurture” philosophy, 3, 4
diverse personalities hired by, 5–6, 31–36, 101–2
on early influences and values, 14
empiricist influence on, 11, 38, 51–52
hiring strategy, 36
Hume and Locke influence on, 11, 29, 51
on luck, 29
many facets of, 9–10
nature-versus-nurture debate and, xiii-xiv, 1–-8
physical description of, 4
recruitment ad, 1–-3
spawning “Turtle” name, xiii-xiv
speaking career, 133–34
William Eckhardt and. See Dennis/Eckhardt relationshipDennis, Richard (politics)differences with Gordon, 10–-3, 119
differences with Parker, 102, 155
rebel at heart, 12–13, 14
on sharing birthday with Nixon,12–13
Dennis, Richard (trading career), 9–27
attitude toward money, 12, 13, 21–22
CBOT pit experience, 18–19
comebacks, 145–46, 150–51, 190
defining silver trade, 47–48
different trading style, xiii, 13, 15, 22
discipline problems, 133
early success, 12–19
ending Turtle program, 129–34
evolution of market and, 19
first investor on, 22
first job, 10–11
gambler tag, 10
initial investment, 12
lawsuits, 131–32, 145
losses, 129–33
major influences on, 11–12
MidAmerican CommodityExchange, 12, 15–18
moneymaking style, 9
move from pit to office, 19–22
overview, 8
performance of, 128, 129–33
philosophica
l outlook, 11, 38, 51–52
political ambitions and, 23–25
profit swings, 9, 16
publicity about, 13–15
retirements, 130, 151–52
rockstar popularity, 133–34
struggling, 20, 25–27
teen years, 10–11
testicular fortitude, 22, 48–49
Turtles beating performance of, 128
Turtles distancing from, 140
Dennis Trading Group, 146, 151–52
Dennis/Eckhardt relationshipDale Dellutri and, 44
galvanizing experience, 47–48
symbiotic relationship, 45–46
See also nature-versus-nurturedebate
DiMaria, Jimon allocation of trade monies, 116, 117–18
on Curt Faith, 117–18, 121