Michael Covel

A PDF of “The Complete TurtleTrader” book jacket.

The Complete TurtleTrader continues to reach an audience. These pictures were snapped at the front door entrance of a Barnes and Noble at one of the largest malls in the United States (Tysons Corner Mall in Virginia). My five-year-old nephew spotted it:

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.

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.

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

The top 10 rankings (PDF) for The Straits Times for December 9, 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:

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

One of the most interesting aspects of the Turtles was Jack Schwager’s chapter title of “The Silence of the Turtles” in his classic book “The New Market Wizards” (1992). While there was almost no information in that book on the Turtles (no one would really talk to Schwager in detail) the book did set in motion a Turtle secrecy mantra that for many has stayed in place all the way to this day. My book “The Complete TurtleTrader” took two related efforts to bring the book together: it was a combination of detailed investigative research and first person interviews. To this day some of the Turtles still don’t want the story out there, even though it is one great, educational lesson for everyone.

This is the magazine layout version of my recent article in Trader Monthly.

“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

One of the projects I am working on? Figuring the best way to bring the vast amount of research that went into my new book to the public. The audio alone is dozens of hours. Then there are emails, articles, research, etc. which all helped bring the book to life.

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.

I posted a note about a bestselling mention for “The Complete TurtleTrader” in the Singapore Straits Times about a week ago. It has now moved up one notch! Of course humility is key here as these rankings never last. As a side note I find it interesting that my book is not yet in the stores in the UK (I checked last week), but clearly it must be available in Singapore. The latest rankings:

Straits Times Bestsellers List
As of 28th October 2007

Non-Fiction
1. English As It is Broken by The Straits Times
2. The Secret by Rhonda Byrne Greenspan
3. The Age Of Turbulence by Alan Greenspan
4. The Complete TurtleTrader by Michael W. Covel
5. I Can Make You Rich by Paul McKenna
6. Marley And Me by John Grogan
7. In My Time by Mr Miyagi
8. Mother Teresa: Come Be My Light by Mother Teresa and Brian Kolodiejchuk
9. The Innocent Man by John Grisham
10. Handbook For Stock Investors by Goh Kheng Chuan

One of the interesting aspects of the Turtle program was the research completed by four Turtles during the program. They figured out that the rules given to them were too “hot”. Here (PDF) is the memo telling them to cut back.

I know it’s a small sample size subject to change, but still its better than not being listed! My new book was on the Singapore Straits Times Bestsellers List (Nonfiction) for Sunday October 22:

1. (1) English As It Is Broken by The Straits Times
2. (2) The Secret by Rhonda Byrne
3. (3) Marley And Me by John Grogan
4. (5) The Age Of Turbulence by Alan Greenspan
5. (-) The Complete TurtleTrader by Michael W. Covel
6. (-) I Can Make You Rich by Paul McKenna
7. (4) Mother Teresa: Come Be My Light by Mother Teresa
8. (6) In My Time by Mr Miyagi
9. (7) The Innocent Man by John Grisham
10. (-) Handbook For Stock Investors by Goh Kheng Chuan

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.

In promoting ‘The Complete TurtleTrader’ I have probably done 20+ radio interviews across the country in the last 24 hours. Very interesting to hear the reactions. Most people have never heard of the story.

Right when I think I know something, I am not so sure. Legend? Dennis/Singapore/Turtle breeding farm. Now, one of the players square in the middle of the whole Turtle world, someone who did not talk until after my book was out, says the Turtles came from Rich Dennis’ fondness for the music of the Turtles. Is this a minor point? Yeah, but a fun one! However, given the behind the scenes drama in bringing this story to life, not so sure all of the Turtles (the traders) are singing the lyrics to the Turtles (the rock group) best song, “Happy Together”:

Imagine me and you, I do
I think about you day and night, it’s only right
To think about the girl you love and hold her tight
So happy together

So happy together
How is the weather
So happy together
We’re happy together
So happy together
Happy together
So happy together
So happy together (ba-ba-ba-ba ba-ba-ba-ba)

The Complete TurtleTrader Table of Contents:

Preface
Acknowledgments
1 Nurture versus Nature
2 Prince of the Pit
3 The Turtles
4 The Philosophy
5 The Rules
6 In the Womb
7 Who Got What to Trade
8 Game Over
9 Out on Their Own
10 Dennis Comes Back to the Game
11 Seizing Opportunity
12 Failure Is a Choice
13 Second-Generation Turtles
14 Model Greatness
Appendix I: Where Are They Now?
Appendix II: Related Websites
Appendix III: Turtle Performance Data
Appendix IV: Turtle Performance While Trading for Richard Dennis
Endnotes
Index
About the Author

For those who have asked about bulk buys of my book “The Complete TurtleTrader”, check out here. They list my first book “Trend Following” too.

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.

At Amazon and bookstores.

I am speaking here in Dallas at the Ritz Carlton on Tuesday. Look at all of those pension funds representing firemen and teachers! Who said hedge funds are not for the little guy?

I had a two and half hour lunch today with an original Turtle who had some funny recollections about his Turtle days. He chuckled at two ways people tried to win Dennis’ attention. Some women actually sent nude photos of themselves in an effort to be hired as a Turtle. Better yet one guy sent two coconuts with a note that said, “If you have the balls to hire me, I have got the nuts.” None of these people were hired.