Michael Covel: News & Info.

Writing “The Complete TurtleTrader” was a roller coaster ride; a journey filled with unexpected insights from disparate sources, insights that often connected in unpredictable ways. At times it seemed as though I was playing a fantasy video game, where the secrets clues and hidden meanings kept popping up each step of the way. By the time the ride was over, it was clear that this was a story some people wanted told and others did not.

However, before my book there was a website. Most people probably don’t remember, but it was TurtleTrader.com that revived the Turtle legend for a new generation. Gibbons Burke of Futures magazine wrote back in 1998: ‘While the proprietors [of TurtleTrader.com] indeed are capitalizing on the Dennis trading legend, they do so in exceedingly good taste and without a trace of snake oil. The message is open, honest, straightforward and makes no hyped-up promises. It sticks to the facts. It is one of the best system trading sites for futures traders I have seen.’

Burke wasn’t the only one to notice TurtleTrader.com. David Penn weighed in from Technical Analysis of Stocks and Commodities magazine in 2003: ‘As one of the administrators of TurtleTrader.com suggested in e-mail, all Turtle trading amounts to, in the end, is trend-following. Indeed, there were successful trend-followers long before Richard Dennis and William Eckhardt’s Turtle trading experiment.’

Shortly thereafter my book project was launched and I quickly came up against resistance. Others had been down that road too. In conversation with Jack Schwager about his ‘Silence of the Turtles’ chapter in his book ‘The New Market Wizards’, he was quick to remind me how little substantive comment he received from Turtles when writing his books.

In 2006, however, it seemed things had finally changed. One Turtle said he would be happy to do an interview, by phone if necessary. Another said that he would be happy to discuss the Turtle experience. Another Turtle only wanted to provide written answers to questions. Yet another said he wouldn’t mind if the circumstances were right. Ultimately those responses resulted in thoughtful, incisive interviews.

Moreover, as the research process gained steam, the more Turtles I discovered. Names of Turtle students never before mentioned in the press popped up. For example, there was Rudolf Papirnik. Robert Moss, Dennis’ trading floor chief, called Papirnik a Turtle. Papirnik worked for Dennis before, during and after the Turtle program. He definitely had ‘Turtle knowledge’. Jim DiMaria backed Moss’ view on Papirnik as a Turtle too.

Many Turtles were quick to express their concern that Dennis would be portrayed as their primary if not only trading teacher. They didn’t want me to diminish the importance of Bill Eckhardt. Jeff Gordon was emphatic, ‘Bill [Eckhardt]. Very smart guy. It seemed like every time he spoke, I learned something. And they’re very few people in the world that I have ever met that I can say that about. I was always learning things from him.’

Another of the more interesting side notes of the Turtle program was genesis of their original nickname. Mike Shannon added a twist to the legend, ‘Our original name, in the first year of our existence, was the ‘Disciples.’ Because it was the name, at the time, of a prominent street gang on Chicago’s West Side, we agreed to go with the ‘Turtle’ idea.’ Accurate? Lucy Wyatt Mattinen, one of the two female Turtles, said the name actually traced back to a fondness by Dennis of the music group ‘The Turtles’! The Singapore Turtle story? Well, I have now heard three versions about the origination of the Turtle name!

Despite these colorful nuggets the big picture was that some Turtles just did not want an objective treatment of their story made public. For example, the confidentiality agreement signed years ago by all Turtles has long expired. The agreement, while not word for word in my book, is public. However, in 2006 when trying to interview Philip Lu, who was now working as a college teacher, I was thrown a curve ball. Lu, via his Edgewood College email address, was blunt, ‘It is my belief that my confidentiality agreement with Richard Dennis is still in force. Therefore I do not give interviews.’

Lu is an intelligent man (graduate of Brown). He made a lot of money as a Turtle and is well respected by many other Turtles. One Turtle sprang to Lu’s defense saying that he could have been in the same league as Parker and Rabar. ‘Phil actively chose not to take over a certain amount of money. He didn’t want to manage a billion dollars.’ Taking another perspective Sam Denardo clearly respected Lu for saying their confidentiality agreement was still in tact. ‘He knows that that system can still work. And the more people that use it, the less effective it’s going to be. He probably feels blessed like a lot of us that we’ve had the experience.’

The desire to keep things silent did not stop with Lu. During 2006, as I completed research for my book, I sent out final requests for interviews. Many Turtles agreed to talk. However, there were some no’s. One Turtle responded by asking who gave away his email address. Another Turtle responded via email that he was not interested. Months later that same Turtle appeared to warm up when his assistant asked for a list of those who had agreed to cooperate. A detailed response to that question brought back, ‘no.’

Unknown to me at the time that exact list was the one used to contact prior interviews to get them to stop talking (which did not work). Was I thinking that some of this reaction was beyond paranoid? Yes! I kept asking myself, ‘What could be so negative about their story? If they knew a book was being published why not get their story out there?’ Particularly since those who agreed to talk said they did so for that exact reason.

However, the book is out now and the reception, save for one Turtle, has been very positive. For example, yet another email from someone in the know came in unsolicited the other day. The subject of the email was “The Silence of the Turtles”:

Dear Michael:

XXX
XXX Capital

I asked that same individual if he/she liked my book. The response:

“Regarding your new book ["The Complete TurtleTrader"], I can say that after hearing the turtle story many times from many of the people that are part of the story and after reading many articles about such story, this is by far the most entertaining, inspiring, extensive, and honest story of the turtles I have ever read.”

It is nice to hear the positive feedback, but I still wonder about the energy expended to try and keep assorted Turtle details locked away. Some Turtles definitely lost sight of the big picture - their great inspirational story and tremendous success (at least for most Turtles). That said, I always knew criticism would come my way from a minority. So what, that’s healthy. The outspoken billionaire Mark Cuban has said:

“The easiest thing in the world to avoid is criticism. All you have to do is nothing. For those of us who set goals and want to have an impact in the business world in particular, criticism is part of the job description. You have to be able to be able to take it and sometimes you can’t be afraid to dish it out. If someone puts in the effort and challenges the content and makes me rethink my position, I come out ahead.”

I agree 100%. The positives and the negatives of the Turtle story are what make it both entertaining and memorable.

More to come.