Michael Covel: Author of Trend Following Category Archives

Category: Book Reviews

Todd Sullivan Review

May 05, 2008

A recent review of "The Complete TurtleTrader".

Jeff White Review of "The Complete TurtleTrader"

April 25, 2008

Read.

Minyanville Review of "The Complete TurtleTrader"

April 10, 2008

A review of "The Complete TurtleTrader" from Quint Tatro of Minyanville.com. He asked the rhetorical question: "What books did you read during 1Q?"

Consistently soaking in knowledge is a must in this profession and as you grow your desire for outside literature should increase. This past quarter my reading was hit or miss. I read about five trading/investing books and four out of five were garbage. The following was the only one worth mentioning: "The Complete TurtleTrader": This was a great read by Michael Covel and delved into the depths of the Turtle strategy which, in a trending market, correlates with my style quite well.

A Review from Orange County, CA

March 30, 2008

A review in today from Ulli G. Niemann a Registered Investment Advisor in Orange County, CA:

Hello Michael, I just wanted to let you know that I featured one of your books on my blog today. The link is [here]. I've enjoyed both of your books, especially since I've been a trend follower, or trend tracker as I call it, since the 1980's. I wanted my 17,000 newsletter readers to share in your findings as I am constantly battling the mindless Buy and Hope syndrome. Thanks for your great work.

Michael Nystrom Review of "The Complete TurtleTrader"

March 21, 2008

More naked self-promotion from me in the form of an excerpt from Michael Nystrom's review of "The Complete TurtleTrader":

"Buy and hold is dead! The extreme market volatility over the last decade should make this abundantly clear to even casual market watchers, but it is something that good traders have known all along: You trade securities, you don't marry them. Buying a stock is not a commitment "until death do you part." A friend once told me the story of a man he knew who worked at Worldcom during the go-go 90's and had his entire 401(k) invested in the company stock. He was waiting for his account to hit $2 million, and then he was going to cash out. It was almost there - $1.8m, $1.9m - something like that when the stock began its terminal decline. Instead of selling, he held on until the bitter end, until all was lost. Moral of the story: The market is the utlimate authority. It does not listen to you, nor care about your dreams & desires, so you had best learn to listen to it. Stories like the above are not uncommon - just ask the employees of Bear Stearns. These days buy and hold may as well be called buy and hope, which is definitely not a sound strategy. And while there are a near infinite variety of potentially successful trading strategies (as the book Market Wizards shows), some of the most successful strategies have been mechanical trend following systems. You've no doubt heard a bit about Richard Dennis, the trend trading pioneer who discussed his mid-1980's Turtles experiment in Market Wizards. Now, thanks to Michael Covel, we are lucky enough to have access to the whole story. Continue...

Tacit Liz Cheval Endorsement of "The Complete TurtleTrader"

March 17, 2008

In "The Complete TurtleTrader" one of the two female Turtles elected specifically not to be interviewed. Maybe that interview is closer to reality today as I just noticed that Liz Cheval is paying ad dollars to Google for the term "Michael Covel." That is a nice endorsement of "The Complete TurtleTrader."

Alex Spiroglou Review; Appeared in Trader Daily

February 15, 2008

Alex Spiroglou's review (PDF) recently appeared in Trader Daily.

Nelson Freeburg Review

February 12, 2008

Some feedback from longtime industry veteran Nelson Freeburg of Formula Research:

Michael, I just finished reading your fine book [The Complete TurtleTrader]. You are a researcher of great diligence and depth. I admire your stress on the entrepreneurial imperative, distinguishing Jerry Parker and Salem Abraham from the rest of the pack. And you are a fine writer with a gift for the apt turn of phrase. (My favorite passage: “Maybe it is that down-to-earth perspective gleaned from living in handshake country [love that phrase!] that gives Abraham a clear perspective.” I also liked your observation about self-actualized individuals who don’t fear striking out so much as missing any possible opportunity to bat.) One piece of advice from this grizzled veteran…for your next book you should find a copy editor who can do justice to your literary and investigative skills. You are an authentic talent. With best wishes and many thanks…Nelson Freeburg

Review from India

February 04, 2008

Vivek Kaul's review from India.

True to Life Pygmalion Story

January 21, 2008

While I believe "The Complete TurtleTrader means different things to different people, it is very interesting to see the diverse feedback. A review posted by a reader:

Covel's true to life Pygmalion story is an inspiration to all of us, Aside from everything that all the other reviewers are mentioning...I'll add this. If you're a trader or investor who ever loses money because of wrong decisions that are triggered by emotional responses to events in the markets, then you should read "The Complete Turtle Trader." It will educate and inspire you in a far more profound and visceral way than 99% of the trading psychology books that are on the market.

A more refined nature versus nurture take over Trading Places!

Feedback from Original Turtles

Feedback in about "The Complete TurtleTrader" from six original Turtles trained by Richard Dennis. By and large the Turtles seem to be of few words when it comes to reviews!

"I did enjoy the book...I hope it's doing well for you."
Turtle #1

"The book was wonderful..."
Turtle #2

"Liked it. Congratulations on a job well done."
Turtle #3

"Book is very good...thank you for going for the truth and objectivity."
Turtle #4

"Nice book."
Turtle #5

"All in all, not bad. I wish it had never been done and I wish I were not in it, but I know that you were definitely going to do it, so I figured I would try to get the truth out as much as possible. By and large, it worked that way."
Turtle #6

Feedback From Vermont on the Human Side

January 17, 2008

Feedback:

Mr. Covel, my compliments. I found your work on the Turtles admirable in so many ways. If you get the chance, preferably on a cold day, do visit the Shelburne Museum along the shores of Lake Champlain in Vermont. I was struck not by the beauty of the place but by just how tough the American settlers were to survive winter, rocks, childbirth and disease in isolation, grueling farm labor, poverty and misfortunes of all kinds. The size and weight of their crude implements alone were intimidating to this softie of the 21st century. I guess you can never tell what your writing can trigger in the mind of a reader. As a 8 year commodities position trader, now retired pathologist, I kept asking myself how could you have observed, interviewed and then written a book that not just captured a complex technical story but at the same time said so much truth about trading and life. But somehow, there it was every time I turned the page. My son and I are carefully reviewing those pages to see what we can add or adapt to our trading approach. Along the way we are re-living our journey together. Thanks for having the talent and toughness to tell the tale so well.

For me, as an author on the subject of the Turtles, this feedback struck me. It hit me because this reader's feedback is how I feel. Yes, my book is about trading, making money and the right kind of technique, but it was the human side of the story that really influenced me.

Continued Bestseller

January 06, 2008

"The Complete TurtleTrader" continues to reach an audience. The Singapore Straits Times non-fiction bestsellers for January 6, 2008:

1. (1) The Secret by Rhonda Byrne
2. (2) Tuesdays With Morrie by Mitch Albom
3. (3) Marley And Me: Life And Love With The World's Worst Dog
4. (4) English As It Is Broken by The Straits Times
5. (5) Think Big And Kick Ass by Donald Trump and Bill Zanker
6. (6) The Age Of Turbulence by Alan Greenspan
7. (-) Flying Star Feng Shui Made Easy by Lillian Too
8. (7) Having It All by John Assaraf
9. (8) The Complete TurtleTrader by Michael W. Covel
10. (9) I Can Make You Rich by Paul McKenna

Top Amazon Reviewers Give Thumbs Up to "The Complete TurtleTrader"

January 02, 2008

"The Complete TurtleTrader" has received very positive reviews from an assortment of top Amazon reviewers:

Grady Harp's Profile (TOP 10 REVIEWER)
Robert D. Steele's Profile (TOP 50 REVIEWER)
K. Corn's Profile (TOP 100 REVIEWER)
magellan's Profile (TOP 100 REVIEWER)
Thomas Duff's Profile (TOP 100 REVIEWER)
mirasreviews' Profile (TOP 500 REVIEWER)
Craig L. Howe's Profile (TOP 500 REVIEWER)
Loyd E. Eskildson's Profile (TOP 500 REVIEWER)
Jeff Lippincott's Profile (TOP 1000 REVIEWER)
Steve Burns' Profile (TOP 1000 REVIEWER)
D. Buxman's Profile (TOP 1000 REVIEWER)

Interesting Question: What Is the Purpose?

December 18, 2007

I received some feedback about "The Complete TurtleTrader" from a trader/money manager who has been at it for 15+ years:

Michael, spent a lot of time with the book this evening, you've done a good job. [In] some ways it would have been better if the book was written in the early 90's for those who were following the whole Dennis story in real time, but it's for those who were around then and I can see its value for younger guys as well. I would be interested to know what you think the book is about in a single sentence and what do you believe is its purpose?

"The Complete TurtleTrader" is an autopsy of a money-making legend, warts and all. It's purpose is to educate the majority who don't know and confirm for the minority who do know.

The Most Successful TurtleTrader

December 17, 2007

In "The Complete TurtleTrader" I tell the story of seeing Jerry Parker's original office outside Richmond, Virginia for the first time. Just finding the place was an adventure. While Richmond was only ninety miles from my house and I had a street address, there were no MapQuest turn-by-turn driving directions available around 1994. I used a good old-fashioned hard copy map from AAA. While I got down to the general area in ninety minutes, I spent another two hours in rural Virginia trying to find his office.

Finally, I stopped into a local country bank and asked if they had ever heard of Parker's firm Chesapeake Capital (remember, I had no appointment to visit Chesapeake, I was just dropping in, hence I did not know where I was going). At first I was met with blank stares in the bank, but then one lady said that Chesapeake might be a 'mile up the street'. She was right. Upon reflection I was struck by the fact that while she kind of knew where Chesapeake was located she had no clue what they did. She was probably making $35,000 a year (nothing wrong with that), but at the same time Jerry Parker was literally a baseball throw away making $35 million a year. While I might sound manic, my first thought was just to shake her and say, 'don't you get who is working down the road? Forget teller jobs, go be an intern for Parker!'

I did not meet Parker that summer day. My first face to face did not come until December 1995 at Parker's new suburban Richmond office (about 18 months later). I had pestered him for an informational interview for some time, and finally his assistant Jonathan Craven responded with the good news that my persistence had paid off. Parker's private office was surprisingly barren except for a small glass turtle on his desk. We talked about Wall Street in general terms.

Yet before the allotted 30-minutes was up, I did capitalize on the face-to-face opportunity by looking at Parker straight in the eye and asking for confirmation of who had won the Barings Bank sweepstakes earlier in the year. My proffer of a 'name', garnered a raised eyebrow, but his one word answer was confirmation. In that instant much of my understanding of trend following trading was solidified.

Later, the broker Parker recommended had me over to his suburban Richmond, Virginia home for chili. This broker was a transplanted Chicagoan who was clearly enjoying financial success in the Deep South (I remember his cool indoor pool). He was a broker archetype: a down to earth, everyman. At one point he mentioned that Parker had given pointers to one of his distant 'relatives' in trend following (the relative was by way of a distant marriage). It would be years before I knew he was talking about second generation Turtle Salem Abraham (who is in my book).

My path did not cross Parker's again for years, long after the website TurtleTrader.com was established. For this visit, Parker, John Hoade, Keith Byers, his IT head and I met in his conference room at his Forest Avenue office. The furnishings of his sparse conference room gave no indication of what Chesapeake Capital did except for a huge Swiss alphorn leaning against the wall. Its 'thank you' engraving to Parker and Chesapeake Capital from a Swiss 'concern' spoke volumes about his firm's reach.

Why the meeting with me to begin with? Chesapeake Capital was a billion dollar fund at the time, but they still wanted fresh ideas. They were investigating whether the Internet could enhance their business, and if so, how to best use it. Our meeting must have given them some good food for thought because shortly thereafter Parker sought to acquire the domain trendfollowing.com from me. It was a wise move not to part with it, since that domain name became a catalyst in launching my first book 'Trend Following' four years later.

Parker's firm today has no web presence to speak of, but that has not hurt them. He is still far and away the most successful Turtle by a long country mile.

More to come.

Turtle Silence Then Acceptance

December 16, 2007

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:

I worked at C & D Commodities with Rich Dennis and Bill Eckhardt for about XXX years; from XXX to XXX. I personally know several turtles. I believe that those of us that consider Rich and Bill friends, do not talk about the turtles because that is the way Rich and Bill prefer it. [...] However, trend-following is alive and well, and will be here forever. Trend-following, if used wisely, is one of the two ways to trade profitably in any financial market. I like your blog a lot, I have visited it and have read it many times over the last several years. I personally think you have done an excellent job at expressing that trend-following is a concept, not a recipe to trade. Those who understand the concept can create their own recipe. Congratulations on the success of your new book!

Best regards,

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.

The Straits Times Non-fiction Bestsellers List (8 Weeks)

December 15, 2007

The Straits Times Non-fiction Bestsellers for December 16, 2007:

1. (1) The Secret by Rhonda Byrne
2. (2) English As It Is Broken by The Straits Times
3. (3) Tuesdays With Morrie by Mitch Albom
4. (5) Marley And Me: Life And Love With The World's Worst Dog
5. (6) Think Big And Kick Ass by Donald Trump and Bill Zanker
6. (-) The Five People You Meet In Heaven by Mitch Albom
7. (8) The Complete TurtleTrader by Michael W. Covel
8. (-) Having It All by John Assaraf
9. (4) The Age Of Turbulence by Alan Greenspan
10. (9) I Can Make You Rich by Paul McKenna

A Review from Down Under

December 10, 2007

Mark Dooley's review of "The Complete TurtleTrader".

Turtle Feedback on "The Complete TurtleTrader"

December 08, 2007

I mention in my book that not all Turtles were cooperative. However, since "The Complete TurtleTrader" has been released three of those uncooperative Turtles have now offered feedback. The three included:

1. A Turtle who never responded to my interview request.
2. A Turtle who declined my interview request.
3. A Turtle who I never was even able to track down.

I have now heard from all three of these Turtles. Their feedback in the form of emails, a card and phone calls? They all liked "The Complete TurtleTrader". And since this is by and large a very closed mouthed group that seeks privacy even to this day, I was surprised to hear from them.

Top 10 Books of 2007

December 06, 2007

Stocks, Futures, Options Magazine has named "The Complete TurtleTrader" as one of their top 10 recommendations among the best-selling trading, investing and personal finance books of 2007:

Hedgeworld Book Review

December 03, 2007

Chidem Kurdas, New York Bureau Chief for Hedgeworld, recently posted a review of "The Complete TurtleTrader" titled "The Making of Traders".

The Singapore Straits Times - Bestsellers List for December 2, 2007

December 02, 2007

Non-fiction:

1. (1) English As It Is Broken by The Straits Times
2. (3) The Secret by Rhonda Byrne
3. (2) The Age Of Turbulence by Alan Greenspan
4. (4) Marley And Me: Life And Love With The World's Worst Dog
5. (5) The Complete TurtleTrader by Michael W. Covel
6. (6) Think Big And Kick Ass by Donald Trump and Bill Zanker
7. (7) I Can Make You Rich by Paul McKenna
8. (8) Mother Teresa: Come Be My Light by Mother Teresa
9. (9) Feng Shui For Apartment Buyers by Joey Yap
10. (10) The Secret Revealed by James L. Garlow and Rick Marschall

Bob Pardo Full Review in Futures Magazine

I posted an excerpt to Pardo's review earlier, but here is his final review from the December 2007 Futures Magazine:

"This is an excellent book for those interested in systematic trading, Richard Dennis, the Turtle “experiment,” the Turtle trading method and the history of trading, but it should not be considered complete from the vantage of a professional algorithmic trader. However, it is the best account of the Turtles so far. It is a quick, easy, fun and interesting read. Covel provides a thorough and accurate historical account of the Turtles from the start to the finish of this experiment. For those unfamiliar with the story, Richard Dennis was widely considered one of, if not the, most successful trader of his era, the 1980s. He and partner William Eckhardt disagreed whether trading is an inborn talent or something that can be learned. They proposed an experiment to discover which was true: the Turtle Project. Covel begins with a description of the thinking behind the Turtle project and recaps the story of recruiting and training the first Turtles, including some of their thinking and experiences during and through the conclusion of the project, which Dennis ended without warning. Covel continues the story with a brief rendition of life for the Turtles after the project. A handful continued as professional traders. The most successful Turtle has been Jerry Parker of Chesapeake Capital. Covel spends a bit too much time on Parker, as interesting and successful as he has been. It would have been interesting if there had been more about the other Turtles post-project lives, but the lack thereof is not entirely Covel’s fault. Anyone who has had much contact with Dennis and the Turtles can attest to their almost paranoid secrecy about the project, and that clearly hindered Covel’s project. Covel suggests that Dennis and the Turtles achieved a milestone in trading and not only established systematic trading as respectable, but also set the bar high. They ventured into new territory and encountered great success. Read the book. There are some interesting trading pearls to be had. They are not identified as such, but they are there nonetheless. Enjoy it. I did."

Robert Pardo is the president of Pardo Capital Ltd., Group Ltd. and Analytics Ltd. He has worked as a trader, money manager, educator, analyst and software designer. Reach him at www.pardocapital.com.

Bloomberg Review of "The Complete TurtleTrader"

November 21, 2007

The following review of "The Complete TurtleTrader" by James Pressley appears on Bloomberg today:

***

Nov. 21 (Bloomberg) -- With the dollar sinking, oil rising and hog futures slumping, this market looks ripe for the Turtles.

I'm not talking about the soda-pop band girls grooved on in the 1960s, "so happy together." The Turtles I mean are the trend followers trained by trading heavy Richard J. Dennis.

Dennis was the wizard of the Chicago pit in the '70s and '80s. By age 37, he had made "hundreds of millions of dollars out of an initial grubstake of a few hundred," as Michael W. Covel recalls in "The Complete TurtleTrader," an absorbing inquiry into how Dennis and his partner taught novices to trade.

Dennis maintained that anyone, with the right training, could become a successful trader. His partner, William Eckhardt, disagreed. To settle the debate, they trained apprentices, then handed them $1 million apiece to trade for the firm.

"We are going to grow traders just like they grow turtles in Singapore," Dennis said after seeing a breeding farm there.

Recruited from classified ads, the Turtles had little in common but smarts. They included a Czechoslovakian-born blackjack master, a fantasy-game designer and an evangelical accountant. A Harvard MBA made the cut, along with a former pianist who had dropped out of med school.

Dennis and Eckhardt put them up in Chicago's staid Union League Club, with its wood paneling and oriental carpets, and gave them two weeks of training in January 1984. The rules they learned "would have made investors like Warren Buffett cringe," Covel writes.

Forget about buying low, holding and selling high. The Turtles were taught to buy when a price was rising and to sell when it was falling. This was trading in its purest form.

It mattered not whether they were dealing in soybeans or International Business Machines Corp. All they needed to know about the thing being traded was its current price and usual volatility: If Microsoft Corp. on a typical day bobs between $48 and $52, a Turtle would say its volatility is four.

Beyond that, they needed to track how much money they had after each trade, because they would trade only a set percentage of what was left.

The Turtles entered trades when a market -- be it gold, yen or cattle -- broke through a recent high or low. They would buy, for example, if the price was the highest in the last 55 days. Then they "pyramided" their trades, adding money to winners until they reached a predetermined exit point.

Because little losses from "false breakouts" could devour capital, Turtles scaled back their bets during losing streaks.

Dennis and Eckhardt resembled "a mass merchandiser who sold 90 percent of their products as loss leaders so they could make a gigantic profit on the remaining 10 percent."

Though Covel brings the experiment to life, there's only so much narrative tension to be squeezed from traders sitting at metal desks in a Spartan office, marking charts and making unemotional calculations on loose-leaf paper without even a TV to distract them. If a market wasn't moving, a Turtle didn't trade.

Still, Covel excels in explaining how the system works and describing "second-generation" Turtles like Salem Abraham, who built his trading business in rural Texas. Most beat-the-market books aren't worth my shelf space. This one is.

The Singapore Straits Times - Bestsellers List

November 19, 2007

"The Complete TurtleTrader" just made The Singapore Straits Times top 10 bestselling list for non-fiction for the 4th week in a row. Still not sure how that demand got stirred up!

1. (1) The Secret by Rhonda Byrne
2. (2) English As It Is Broken by The Straits Times
3. (3) The Age Of Turbulence by Alan Greenspan
4. (4) Marley And Me: Life And Love With The World's Worst Dog
5. (5) Think Big And Kick Ass by Donald Trump and Bill Zanker
6. (6) The Complete TurtleTrader by Michael W. Covel
7. (7) Mother Teresa: Come Be My Light by Mother Teresa
8. (8) Feng Shui For Apartment Buyers by Joey Yap
9. (9) I Can Make You Rich by Paul McKenna
10. (10) Why We Want You To Be Rich by Donald J. Trump

Futures Magazine Review of "The Complete TurtleTrader" by Bob Pardo

November 14, 2007

Bob Pardo reviews "The Complete TurtleTrader" in the December issue of Futures Magazine. An excerpt:

Suffice it to say that Covel’s speculations about the significance of Dennis and the Turtles are interesting and ones with which I agree. He suggests that Dennis and the Turtles established a milestone in trading and not only established systematic trading as respectable, but set the bar rather high. The simple truth is that Dennis and the Turtles accomplished something that had never been done before and at a very high level of quality and success. Read the book. There are some interesting trading “pearls” to be had in this book. They are not identified as such, but they are there nonetheless. Enjoy it. I did.

Trader Monthly December Issue Featuring "The Turtles"

The December issue of Trader Monthly has several Turtle related articles including this one (PDF) I authored that covers Richard Dennis to Jerry Parker to Salem Abraham. Beyond the magazine readers may find the contrast between Jerry Parker and not successful Turtles even more illuminating. The first link is a trading presentation by Parker. The second link is a self-produced political video by a Turtle who doesn't trade. The two presentations are a great illustration why some Turtles made it and why some did not. Bottom line, twenty years after the ending of the Turtle experiment it is Jerry Parker, the most successful Turtle, who provides the winning trading lessons.

Grady Harp Amazon Top 10 Reviewer

November 01, 2007

Grady Harp is one of Amazon's Top 10 reviewers. His review of my book "The Complete TurtleTrader":

Michael W. Covel has managed to master the art of writing about the stock market, namely the story of the infamous 'Turtle Trader' group, by including all the 'in-house' information and language and statistics while adjusting the significant bit of history into a narrative that reads like a novel. For the reader who knows little about the stock market and the means by which it trades and responds/creates the economic climate of this country, this book is a fascinating insight into an actual experiment where it was proven that financial wizards are not necessarily born ('nature') to their wealthy destiny, but instead can be ordinary people (yes, like us) who can be 'nurtured' by wise teachers to learn the ropes of the sacrosanct.

Covel seduces us in his well-written Preface: 'People do have a chance to win in the market game, but he or she needs the right rules and the attitude to play by. And those right rules and attitude collide head-on with basic human nature.' And there he has us, as neophytes, well in hand into exploring his well documented, thorough, and (most important for neophytes) well written book THE COMPLETE TURTLE TRADER: THE LEGEND, THE LESSONS, THE RESULTS. What follows is a fine background of two big, philosophically disparate money men - Richard J. Dennis and William Eckhardt - who created the Turtle Traders in 1983, a group of men/women who responded to a newspaper ad, coming from widely different backgrounds, and learned the basic rules of trading and investing using the money of the mentors. How they did this and the success they achieved proved conclusively that learning to become wealthy in the money market CAN be learned.

To make this book interest sustaining in nature, Covel identifies the Turtle Traders and follows their group and individual histories in a manner that approaches a screenplay. We get to know them, feel their development, learn of their power plays that result in monumental gains and equally huge losses, and in doing so Covel personalizes his data, adding the follow-up history of this select group to bring a since of closure to his well researched book. And for a book about something as potentially obtuse and foreign to the market-challenged reader, Covel has succeeded in making a page-turner! This strongly written book should be in the library of every person who deals with the Wall Street life, but it is also a tantalizing insider's look at how the mystique of the money baron bubble can be popped!

Grady Harp, November 07

Ground Control to Major Tom!

October 29, 2007

I saw a "correction" at TheStreet.com today of Marek Fuchs' review of my book "The Complete TurtleTrader":

By TSC Staff
10/29/2007 10:18 AM EDT

An Oct. 27 Marek Fuchs column, Wolves in Turtles' Clothing, said that Michael Covel ran the test discussed in his book. In fact, Covel wrote about the test, but did not run it. TheStreet.com regrets the error. (Corrected Oct. 29)

The only thing that comes to mind for me when I see their "correction" are the lyrics to David Bowie's Space Oddity...these guys are either plain lost or they are intent on confusing issues on purpose.

A Review of Marek Fuch's Review

A well written review of Marek Fuch's review.

Brett Steenbarger Review of "The Complete TurtleTrader"

October 28, 2007

A review of my new book forwarded to me today by a reader in France:

Turtle Trading Lessons From Michael Covel by Brett Steenbarger

Few legends in trading have been as enduring as that of the Turtles. The Turtles were traders in the 1980s trained in a trend-following methodology by Richard Dennis and William Eckhardt. The traders came from a variety of backgrounds; most had no background whatsoever in financial markets. Dennis championed the cause of nurture: he believed that great traders could be made. Eckhardt took the other side of the bet, and the Turtle experiment was on.

The Complete TurtleTrader, Michael Covel's engaging and well-written account of the Turtles, covers not only the experiment, but a second generation of Turtles who were inspired by the Dennis/Eckhardt vision. One of the most interesting segments of the book covers Salem Abraham, who by chance met one of the original Turtles, took a 180 degree life turn, and began his own highly successful fund. It's a powerful illustration that, though markets have changed since the 1980s, the dynamics of success have not.

Covel's book reads more like a piece of financial journalism than I expected, and I mean that as a compliment. It is this well-rounded perspective that makes "The Complete Turtle Trader" complete and a definitive contribution to the trading literature. He has clearly researched his topic and sources his quotes. He also casts a critical eye on his subjects, investigating why some Turtles found long-term success and why others didn't. A very enlightening portion of the book concerns Richard Dennis himself, the ending of the Turtle experiment, and the master's departure from his own trading rules and principles.

For those wanting access to the Turtle philosophy and rules, they're laid out clearly and unflinchingly. This is not a methodology for the faint-hearted, which is one reason so many Turtles and would-be Turtles have not stuck with it. Large drawdowns inevitably accompany the quest for large gains, and it's those large gains that ultimately provide trend following with its edge. Investors who place their money in funds simply don't want to see 20% of their money evaporate in a quarter. This inevitably leads money managers to refine (and ultimately eviscerate) the Turtle methodology.

Many of Covel's themes will ring true to readers of this blog, including the role of deliberative practice in the acquisition of trading expertise and the importance of emotional resilience and entrepreneurial spirit in sustaining a trading career. My impression, reading the book, is that Covel is under no illusions: the methodology, which provides the statistical edge in trading, is necessary but not sufficient for success. After all, the Turtles started with the same methods; some made it, others didn't. Covel's segment discussing what separated a successful Turtle, Jerry Parker, from his less successful peers is perhaps the most insightful portion of the book.

Because Covel so clearly lays out these ingredients of success, his book is relevant not just to trend traders, but to anyone who aspires to greatness in the markets. The message is clear: to win, the odds must be in your favor, and you must have the fortitude to keep playing, remain consistent, and compound your edge. That's a formula for success in any field of endeavor, which may be why the Turtle story finds universal appeal.

And, by the way, for readers who want to dig a little more into Turtle trading before purchasing Michael's book, I recommend his website. There are quite a few resources there, including articles on money management and trend following.

Source: Brett Steenbarger's Site

Marek Fuchs: When You Are This Arrogant Why Bother to Read Covel's Book!

I believe NY Times and TheStreet.com reporter Marek Fuchs wrote a review of my new book without even reading it. I should note that in our email exchange below it was fairly predictable that Fuchs would go down the path of "Mike doesn't have thick enough skin" as a defense for me questioning his competence. When you catch a reporter, a NY Times reporter, in the middle of sloppy reporting, its not surprising that when you press hard (which I did), he would come out arrogantly swinging back. Our email conversation:

Covel: Are you familiar with the factual errors in your review of my book?

Fuchs: I've written thousands of articles and have only made a handful of errors, but I am sorry I said you ran the experiment in my article (I didn't make the sloppy mistake in my video). In quickly trying to edit out of a passively constructed "an experiment was run..." I slipped and I'm sorry. If there are any other errors, please let me know.

Covel: I have had feedback from a ton of people about your review. Intellectually honest criticism is one thing, I welcome it. But for a NY Times reporter to not read my book, and attempt to review it (while making factual errors), is frankly sad. One of my blog readers summed your effort up:

Reading the review of your book by Mr. Fuchs reminded of me an expression that goes something along the lines of 'It is better to let the world think you are ignorant than to open your mouth and prove it'. Well, Mr. Fuchs may not have opened his mouth per se, but clearly his written word was more than sufficient to highlight his ignorance.

A follow-up from the same above reader:

When I sent my initial comment below I did not realize that Fuchs had posted the video review. Now that I have watched that review, I stand corrected of my original comment. Mr. Fuchs was in fact good enough to open his mouth to prove his ignorance. Criticism that is rooted in a difference of professional opinion or a failure to comprehend the subject matter (after making an effort to do so) is one thing. Criticism such as Fuchs' which results from apparently nothing but an attempt to smear a book and its author without taking to the time to read the book much less obtaining at least a minimal understanding of the subject matter (i.e., the Turtles) is simply lazy and irresponsible. Apparently Fuchs doesn't subscribe to the Jim Cramer mantra of 'doing your homework'.

I would love to see you read my book one day.

Fuchs: Michael--Please don't play that game. I read that book and can send you a bunch of letters too--including one from a former student of your's--agreeing with my assesment [sic]. (He liked your class very much, by the way.) Again, if you think I made a specific error (other than the attribution of the contest in the aritlce [sic] and not the video--and I'm sorry for that) please let me know.

Covel: A former student? Huh? I am not Richard Dennis, I did not teach the Turtles. What are you talking about? Additionally:

1. You imply that the Turtles, the traders in my book, are slow and steady. Clearly, they were not. They were high risk and high reward.
2. You say that the Turtle students were already successful. My book does not say this, nor is this an accurate description of events. The Turtle story is about taking people who were not wildly successful already and making them successful.
3. You mockingly read a passage (with a smiling kid on your lap for good measure) from my book about a tortoise and hare. Problem? That story is not in my book. The word 'hare' is not in my book.
4. You don't understand that the Turtle traders were not fundamental traders and mockingly refer to my book advocating the use of momentum strategies. No kidding! That is what the book is about. You say "No turtle I know is a momentum player." That statement demonstrates no grasp about what the Turtle experiment even was. Here are some comparison reviews, not to say you needed to praise my book (I could care less), but to show that you did not read the book (1), (2), (3), & (4). Maybe you glanced at some pages in my book, but you don't have the facts even remotely understood. You demonstrate that in your writing and video. As I said, sad reporting.

Fuchs: Michael: I'm glad you may have gotten some good reivews [sic]. Better reason, perhaps, to have a thicker skin on a bad one. Look: in my subjective opinion, I did not like the book and did not think it would help investors who read it--the lens through which I judge. I never said the Turtles were already sucessful [sic] on Wall Street, but that they had sucess [sic] in other areas. Since many on Wall Street--those I used to work with, those I write about--come from varied backgrounds, I think trumpeting the fact that these one time novices did well makes too much of this (or any other) method. Plenty--as I made clear--have come from other fields. That is important for readers to know. In terms of the introduction of the video, that was a wry take on the turtle reference--I trust viewers know that the children's tale of the turtle and the hare preceded this book. And, look, laying out a "sound" and "easy to follow" system for trading certainly implies a steadiness--especially when drawing a comparison with the braying on cable television. Problem was, too much of the advice, in the end, takes the form of platitudes. This is dangerous when the aim is fairly aggressive trading. That's what I read, that's what I said and that's why I don't think this is a good book for investors. Look--I've gotten plenty of letters, including from those who say they were seminar students of yours, that they were disappointed in the book. I've also gotten letters that they loved the book and I am the dumbest thing since the Edsel. I side with the first and I'll hazard a guess that you throw your hat in with the second.

Covel: I welcome bad reviews from people who have read the book. Intellectually honest debates are great. However, you still don't have a clue what the book is even about and continue to misrepresent basic facts in it. Your email is further confirmation of that fact. Perhaps you were just lazy that day? No matter, it was an extremely weak effort for a NY Times reporter.

Another blogger posting about this review.

I Punch Jim Cramer, He Punches Back; An Odd 'Review' at TheStreet.com from Marek Fuchs

October 27, 2007

Jim Cramer received a gentle punch from me in the preface of my new book. And clearly, he must not be happy. One of his reporters, who is also a NY Times reporter as well, has written a review of my new book that appears to have been completed without even reading it. Why do I say that? In his review he says that "I" did the Turtle experiment. Brilliant attention to detail!

Here is the review from TheStreet.com's Marek Fuchs (PDF).

The first paragraph of his review is an embarrassing admission that he NEVER read the book. However, it gets better. Fuchs also posted a VIDEO review of "The Complete TurtleTrader".

My thoughts? In Fuchs two reviews there are some "odd" discrepancies and or outright falsehoods that make me wonder what about the intended purpose of his "review":

1. Marek Fuchs implies that the Turtles, the traders in my book, are slow and steady. Clearly, they were not. They were high risk and high reward.
2. Marek Fuchs says that "Covel ran a contest of sorts". Fuchs is nowhere near accurate there.
3. Marek Fuchs says that the Turtles were already successful. My book does not say this, nor is this an accurate description of events. The Turtle story is great because it essentially took people who were not wildly successful already and made them successful. Again, clearly Fuchs is just reading my cover jacket at best.
4. Marek Fuchs mockingly reads a passage (with a smiling kid on his lap for good measure) from my book about a tortoise and hare. Problem? That story is not in my book. The word hare is not in my book.
5. Marek Fuchs doesn't understand that the Turtles were NOT fundamental traders and mockingly refers to my book advocating the use of momentum strategies. No kidding! THAT is what the book is about.

I must be making progress if Jim Cramer sends in the help to write an inept hit piece! As one of my readers wrote me:

Reading the review of your book by Mr. Fuchs reminded of me an expression that goes something along the lines of “….It is better to let the world think you are ignorant than to open your mouth and prove it…”. Well, Mr. Fuchs may not have opened his mouth per se, but clearly his written word was more than sufficient to highlight his ignorance. Congratulations on the new book. I will be ordering it from Amazon.com soon. Regards, Mike

A follow-up from the same above reader:

My email exchange with Fuchs.

Market Technicians Newsletter Review

October 24, 2007

I received permission to post a recent Market Technicians Newsletter review of my new book. Here it is (PDF) by Ajay Jani.

Another Turtle Review

October 21, 2007

Now that my book is out I am hearing from original Turtles about it. Another wrote me today:

"Nice book. Thanks. Sad ending. Although it's still far from over."

I have not named some of the Turtles that have been emailing me as their emails were personal notes. Additionally, now that my book is out two Turtles who were not interviewed have expressed interest in talking to me, Of course I will take that opportunity, but their feedback might have to wait for a future expanded edition!

Chuck Jaffe Interview Re: The Complete TurtleTrader

October 19, 2007

Just finished radio interview with Chuck Jaffe of Market Watch. While he said he had read another book on the Turtles, he did offer that my book was at the head of the pack.

Complete TurtleTrader Review in Market Technicians Association Newsletter

October 18, 2007

The following review appears in the Oct 2007 Market Technicians Association Newsletter. It is by Ajay Jani. You can find full review here. A screen shot:

Turtle Feedback about My New Book

October 16, 2007

Feedback from one Turtle on my new book:

Thanks, but you do not need to send me a copy. I've already bought the book and read most of it. Liked it. Congratulations on a job well done.

To the point! Another Turtle called me to say the book was spot on.

Michael Martin Review of "The Complete TurtleTrader"

October 15, 2007

A review from trader Michael Martin of my new book. Martin manages a fund in excess of $100 million.

Your Trading Edge Magazine Review

October 13, 2007

A review from Australia's Your Trading Edge Magazine:

The legend of Richard Dennis' bet with his friend and business partner William Eckhardt that trading could be taught to anyone is known to almost everyone involved in trading and investing. The trend following break out system taught to this mixed group of students forms the basis of the majority of trading styles, theories and methodologies around today. This group were referred to as the turtles after Dennis visited a turtle breeding farm in Singapore and allegedly made the comment to Eckhardt that he could 'breed traders just like they breed turtles.'

In this book Michael Covel examines in great detail the story of the turtles. How the legend was born, the processes involved, and the participants involved in one of the most interesting real live trading 'experiments' ever conducted. He also delves into the performances of the students both during their mentorship, and after they were set free by Dennis and Eckhardt to make their own way in the trading world.

Covel does more however than simply tell the same story of the turtles that has been told before in other books on the subject. He examines in great detail the personalities involved, the behind the scenes stories, anecdotes and actual events that occurred. It is a 'warts and all' coverage of a fascinating social, trading and psychological experiment. He also includes the actual trading results of the turtles during their time spent with Richard Dennis, and trading results for a number of them who continued to trade after the program was terminated. These results are a fascinating insight into the approach used and the variations that can occur even with people all supposedly trading an identical system.

Covel also covers the extreme psychological strength required to employ such a trading strategy, where 60 - 70% of trades are losers, yet the winners when they come more than offset this high number of losing trades. The system draw downs pose a similar test of strength.

The book is a fascinating insight into the turtle program and 'system', the developers of the training program (Dennis and Eckhardt), and a number of the original turtle students, both then and now. It is a great read for anyone enamoured by the turtle 'myth' and for all those with an interest in trading in general as it tells the 'real stories' rather than just the glossy good bits - a thoroughly good read.

'The Complete TurtleTrader' Book Feedback

October 10, 2007

A question from Hong Kong about my new book:

Dear Michael, I bought your book and noticed that Russell Sands was not included among the Turtles. I was wondering if there was a reason for this? I ask because I have always wondered about the relationship between Russell and Richard Dennis. I loved your book. While trend following is not my cup of tea, the insights you brought on the Turtle mindset was invaluable. Thanks for a great job. All the best, Ray

Before I could answer that Russell Sands is indeed in my book, Ray followed up:

Sorry on re-reading this I realize I was unclear. What I wanted to know was why Russell's track record was not among those you published?

Sands was only with Dennis for a year, and I don't have that one year record. In terms of the next 20 yrs he doesn't have a continuous record. For the book, after the Turtle program ended, I aimed to publish those Turtles with a continuous track record. For trading during the Turtle program I published the records that could be found. There was some interesting discrepancies there.

Review of "The Complete TurtleTrader"

September 01, 2007

A review of "The Complete TurtleTrader" in the September 2007 issue of SFO Magazine.

UVA Reading List

August 09, 2006

It is always good news to get a book into the Universities - they are tough nuts to crack. This feedback in from a noted professor at the University of Virginia:

"I enjoyed reading your book [Trend Following] especially chapters 2, 5, 6 and 8. In fact, I added your book in 2005 to a list of suggested readings for students in my Financial Trading class."

Michael J. Mauboussin: More Than You Know

June 06, 2006

Michael J. Mauboussin has a new book out called More Than You Know: Finding Financial Wisdom in Unconventional Places.

I was not aware of Michael's new book until he sent me a copy, but I feel silly for missing its release in April! Michael's writings have influenced me greatly over the years and many of his quotes are in Trend Following. He has the unique ability to break down the very complicated into the very simple. Read his new book if you like to learn! Avoid it if you like stock tips!

Barry Ritholtz of The Street.com

December 09, 2005

In his 'Apprenticed Investor' series, Barry Ritholtz of the TheStreet.com offers feedback on Trend Following:

"My favorite of the new TA [Technical Analysis] books is Trend Following by Michael Covel. Straightforward, easy to read, this book is rich in details about why trend following is such a successful strategy amongst some of the world's best-performing hedge funds."

PDF of article.

Kirkus Reviews

November 01, 2005

From Kirkus Reviews:

"Covel says that you can get rich, no matter what the markets are doing, by 'Trend Following'...Covel's secrets include the counterintuitive practice of buying high and selling low, and going short as often as you go long. Trend followers focus on absolute returns, rather than constantly comparing their performance to, say, the S&P 500. Perhaps the most useful section is Covel's dismissal of several 'holy grails' of investing. For example, most of us have been taught to hold stocks even as they dip, believing that if we are patient enough, we'll eventually earn our money back. Covel notes that the most successful businesses eschew this buy-and-hold philosophy, and personal investors should too. There's also a problem with investors' tendency to follow stock tips: the tips only tell us when to buy, and buying a hot stock is only smart if you also know when to sell. Whether you have $1000 or $10,000,000 to invest, this provocative guide will help you take your portfolio to new heights."

Trend Following Feedback

March 20, 2005

Since the release of Trend Following 11 months ago, feedback ranging from the average retail trader to the world class fund managers has been overwhelmingly positive. There appears to be a small minority unable to accept trend following trading, but the vast majority of market players have taken to the book:

Dear Michael, I bought your book on trend following, and while I am not even to close to finishing it, I can tell that I like it very much. What a great read, what an inspiring book! Thanks for writing it! Warmest regards from Amsterdam, Albert
Feedback 1

Mr. Covel, I purchased your book when it was hot off the press. As a market participant for over 15 years, and having read a lot of books on the markets, your work is excellent. Congrats on the success of your book. Thanks, David L., CFA
Feedback 2

I just finished reading "Trend Following" today. It is AWESOME! I am very greatful to you for writing it. In the mess of hundreds of useless investing/trading books, yours stands out with about 5 - 7 books that can actually help people make money! While reading your book I actually felt for the first time in my life that I could run a fund! I am 36 years old and it has been a life long dream of mine to work for or run a successful hedge fund. I always felt to uneducated to do it until now.
Feedback 3

Hi Michael, My name is Jack M. and I've just finished reading your book "Trend Following". What an excellent and informative read. I have been researching this method of trading and this book helped me immensely. A little bit about me, I finished an Engineering degree in Queensland, Australia two years ago, but I haven't found any job or career path that really interests me. I find it fantastic to find Trend Following...I hope to learn and use this method of trading in my life. Thanks again for your excellent book, Jack M.
Feedback 4

I just purchased the Michael Covel book Trend Following and have started reading it with much interest. As I was plowing through the first chapter, it began to occur to me that I am a closet trend follower, as are many of my value oriented colleagues. How did I arrive at that conclusion? Let's go back to the answer that was given about fundamental analysis. That answer would certainly dispel any myths about trend following being better than fundamental analysis if it were truly the case that one ran the numbers, bought a stock and forgot about it. Trouble is, it doesn't work like that. You get new information about your purchase at least every quarter. At that point, any money manager worth his salt is re-evaluating his holdings in light of this new information. Sometimes you revalue your holdings upwards, other times, downwards. Some change very little. Next look at current price versus the newly calculated valuation. If the risk/reward ratio is sufficient, buy more. If it's not, hold what you have. If the valuation has gone down enough or the price risen sufficiently, you sell. It is interesting to note that, currently, most of the Graham and Dodd investors are holding a significant portion of their assets in cash (myself included). This is because there is nothing that meets our value criteria to buy and, of the holdings that we held, they have become overvalued enough to take profits on. So trend following and fundamental analysis are not mutually exclusive as some of you might think. If things are done properly, good fundamental analysts will follow a trend. As for your argument on position sizing ('fundamental analysis won't tell you how much to buy'), you are correct in that statement. But trend following won't tell you that either. Position sizing is a personal choice and is a necessary part of ANY competent investment program. The decision to add to positions that offer better rewards and sell out of positions with declining or negative rewards is critical. I look forward to finishing Mr. Covel's book. I am still intrigued by trend following techniques. I do not argue with the successes of those who follow the techniques. Sincerely, Alan M., CFA
Feedback 5

Traders Magazine Book Review

November 22, 2004

The German Traders magazine offers this review of Trend Following:

Read Part 1

Read Part 2

"In Trend Following, Michael Covel provides the most complete and concise guide to trend following to date, exploring the sometimes forgotten technique and its billionaire followers. It is both enjoyable and thorough, making it invaluable reading for all traders, even if they have only a mild interest in trend following, or are doubtful of its success. For a technique that is performing at a consistently high level, and is constantly being re-discovered, Trend Following is the definitive guide."
Traders Magazine (English version)
December 2004

Legg Mason Follow-up

October 25, 2004

Richard E. Cripps, CFA & Chief Market Strategist at Legg Mason, offered a review of Trend Following recently. In a follow-up document he stated:

"Trend Following, by Michael Covel, is a new book gaining popularity among investors. The book is challenging to the methods of conventional portfolio strategy. We point out the similarities in the approach of trend following and the PPS model."

Download Legg Mason Report on Trend Following and their PPS Model.

Legg Mason Book Review

October 11, 2004

Read Legg Mason review of Trend Following from Richard Cripps.

Richard Cripps

Full PDF review here.

Your Trading Edge Magazine Review

August 24, 2004

"A most interesting book--definitely a 'must have' on your shelf. Pull out the plastic and get it!...Trend Following is well constructed, well written and an excellent distillation of the research undertaken by the author. Backed up by trading 'legends' like Ed Seykota, it convincingly argues that the most successful trading systems are based on trend following...While you may read the book in bed, especially the first time, it is best read at a desk with a notepad handy. While seeming to come from the perspective of technical analysis it is still a very good book on trading psychology...The book is both a great read and an insightful textbook for all traders and investors."
Garnett Znidaric
Your Trading Edge Magazine
http://www.yte.com.au
Australia

Stocks, Futures & Options Magazine Review

August 03, 2004

"Please read [Trend Following] whether you think you have an interest in trend following or are not quite sure. I guarantee you will be happy that you took the time. It, of course, covers how trend following works, how it's done, and who can do it, and it doesn't beat around the bush with generalities. But, on top of that, it really delves into the human nature of inventors and traders like I've seen few books do well, and that alone will make it worth the read...Once you begin reading the book, if you have a choice, I bet you will put it down only for meals and bathroom breaks. It's that well done...Again, get this book. Covel has hit a homerun with it."
Gail Osten
Stocks, Futures & Options Magazine
September 2004 Book Review

Read complete September 2004 book review of Trend Following.

Victor Niederhoffer Review

June 28, 2004

There has been a wide cross section of positive endorsements for Trend Following since the late April 2004 release. However, Victor Niederhoffer's negative review may be the best endorsement yet.

Why is his negative review positive?

1.) Niederhoffer does not believe Trend Following works. He felt this way (and stated so) long before Trend Following hit the shelves. He ignores all performance data of all trend followers for the last 30 years -- and continues to draw the conclusion that trend following trading is "horoscope reading".

2.) Niederhoffer's review appears to be a response to pages 136-139 of Trend Following. These pages cast a less than positive light on his trading technique.

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"Covel has created a very rare thing - a well-documented and thoroughly researched book on trend following that is also well-written and easy to read. It touches on a wide variety of the principles and practices which make for successful trend following. This is one book that traders at all levels will find of real value."
John Mauldin
Author of Bull's Eye Investing

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