Top Turtle's Trading Tips (w/ Jerry Parker) | Skin In the Game

TL;DR

Jerry Parker, a former turtle trader and CEO of Chesapeake Capital, discusses his background as a turtle and his trend following trading strategy.

Transcript

[MUSIC PLAYING] You can't be a Marine by reading a book. You can't really be a turtle trader-- as good a turtle trader as you would, unless you worked for Richard Dennis and Bill Eckhardt. Systematic trend following has a tendency to make money when we see things that have never happened before. I heard Paul Jones speak in 1988 at UVA. And he talke... Read More

Key Insights

• 🤑 Trend following has a tendency to make money in unprecedented market conditions.
• 🥺 Following a system and trading small can lead to success in trend following.
• *️⃣ Diversification and position sizing are key to managing risk in trend following.
• 🔂 Trading single stocks can offer diversification and reduce drawdowns.
• ⌛ Historical data and backtesting can help determine the time frame for trend following.
• 💋 Following the system and sticking to the rules is essential in trend following.
• 🥹 Long-term holding periods and staying disciplined are important in trend following.

Questions & Answers

Q: What is a turtle trader?

Turtle traders were a group of traders who were taught a systematic trend following strategy by Richard Dennis in the 1980s.

Q: How did Jerry Parker become a turtle?

Jerry saw an ad from Richard Dennis in the Wall Street Journal and applied for the program, going through an interview process and scoring the highest on a trading test.

Q: How did the turtle traders get their name?

The group of traders were named turtles because Richard Dennis was compared to someone raising traders, similar to a turtle farm in Singapore.

Q: How did Jerry Parker start his own CTA after leaving the turtle program?

Jerry Parker had a good track record and used it to raise money from clients, starting Chesapeake Capital.

Summary & Key Takeaways

• Jerry Parker was one of the original turtles, a group of traders taught by Richard Dennis to follow a systematic trend following strategy.

• The turtles were named after a turtle farm in Singapore, as they were being raised as traders in Chicago.

• Jerry Parker left the turtle program after four years and started his own CTA, focusing on trend following in various asset classes.