Most people think great traders are born with a special skill, but Richard Dennis and William Eckhardt proved otherwise. They believed that trading is a skill anyone can learn if they follow the right strategy. Their famous Turtle Trader experiment turned complete beginners into successful traders, proving that trading success comes from discipline and strategy, not talent or luck.
Richard Dennis – The Prince of the Pit
Born: January 1949, Chicago, USA
Starting Capital: Borrowed $1,600 (turned it into over $350 million in a few years)
Trading Style: Trend following, futures trading
Richard Dennis was a young man from a middle-class family who started trading at just 17 years old. He borrowed $1,600 to trade commodities and quickly grew it into $350 million. He earned the nickname “The Prince of the Pit” because of his success in the fast-moving futures market.
Dennis strongly believed that anyone could be trained to trade successfully if they followed a set of rules. His friend and trading partner, William Eckhardt, disagreed. Eckhardt thought trading required special instincts that couldn’t be taught.
The Turtle Traders Experiment – Can Anyone Be a Trader?
To settle their debate, Dennis and Eckhardt created an experiment in 1983. They placed ads in newspapers, inviting regular people with no trading experience to join their program.
They picked 23 students from different backgrounds like teachers, security guards, actors, and even a former blackjack player.
Dennis trained them for two weeks, teaching them his trend-following system.
He gave them real money to trade and told them to strictly follow the rules.
Richard Dennis initially provided the Turtle Traders with a total of $1 million in trading capital. As they proved their skills, he increased their capital, eventually managing $23 million.
Over four years (1983-1988), the Turtle Traders reportedly made around $175 million in profits. This showed that with the right strategy and discipline, even beginners could achieve massive success in trading.
The Turtle Trading Strategy – Follow the Trend
The system Dennis taught was simple but powerful:
Trade the trend: Buy when prices go up, sell when they go down.
Cut losses fast: If the trade goes against you, exit quickly.
Let profits run: Stay in winning trades as long as the trend continues.
Use proper position sizing: Risk only a small percentage of capital on each trade.
Stay disciplined: Follow the system without emotions.
This method worked because markets tend to move in long trends, and Turtle Traders took advantage of those big moves.
William Eckhardt – The Mathematical Mind
Born: 1948, Chicago, USA
Background: Studied mathematics and philosophy
Belief: Trading requires deep analysis and logical thinking
While Dennis was more intuitive, Eckhardt was a scientist. He focused on probabilities and statistics in trading. After the Turtle Experiment, he continued developing quantitative trading systems, proving that data-driven strategies could consistently make money.
Lessons from Dennis & Eckhardt
Trading is a skill that can be learned. If complete beginners can become million dollar traders, anyone can succeed with the right approach.
Follow the trend. Most big profits come from riding strong price movements.
Risk management is key. Losing trades are normal, but smart money management keeps losses small.
Stick to the rules. Emotions ruin traders, discipline wins in the long run.
Conclusion
The Turtle Traders experiment changed trading forever. Today, many hedge funds and professional traders use trend-following strategies inspired by Dennis and Eckhardt. Their story is proof that successful trading is not about luck, it’s about having a solid system and following it without fear or greed.
