How To Invest Like Richard Dennis: Turtle Trading System Founder

Investing is an intricate blend of strategy, psychology, and disciplined execution. Among the many legends in the trading world, Richard Dennis stands out as a pioneer whose innovative approaches have left an indelible mark. Best known for creating the Turtle Trading System, Dennis transformed the landscape of trend-following strategies. In this comprehensive guide, we’ll delve into Richard Dennis’s life, his groundbreaking Turtle Trading System, and how you can adopt his methods to enhance your own trading endeavors.


source: financial wisdom on YouTube

Who is Richard Dennis?

Richard Dennis is a name synonymous with trading excellence and innovation. Renowned as a commodities trader, Dennis gained fame not only for his personal trading success but also for his unique approach to teaching and mentoring new traders. His influence on the trading world is profound, with the Turtle Trading System being one of his most significant contributions.

How to Invest Like Richard Dennis Turtle Trading System Founder essence of the Turtle Trading System, trend-following strategies, and systematic rules

The Turtle Trading System: A Game Changer

The Turtle Trading System is a trend-following strategy that emerged from one of the most famous experiments in trading history—the Turtle Experiment. This system emphasizes disciplined entry and exit rules, risk management, and psychological resilience. It’s designed to capitalize on sustained market trends, making it a robust method for both novice and experienced traders.

Let’s explore and understand Richard Dennis’s trading approach. We’ll break down the principles of the Turtle Trading System, examine its core components, and provide practical steps for you to implement these strategies in today’s dynamic markets. Whether you’re looking to refine your trading skills or seeking a structured approach to investing, this guide will equip you with the knowledge to invest like Richard Dennis.

life and achievements of Richard Dennis represents his journey from pit trading to the Turtle Trading Experiment and his impact as a mentor and educator

Who is Richard Dennis?

Background and Early Life

Richard Dennis was born in 1949 in Chicago, Illinois. Growing up in a modest household, Dennis showed an early aptitude for numbers and strategy, which later translated into his trading career. He pursued a degree in philosophy at Stanford University, where he honed his analytical and critical thinking skills—traits that would prove invaluable in his future endeavors.

From Pit Trader to Trading Legend

After completing his education, Dennis ventured into the world of commodities trading. He started as a pit trader, working on the trading floors where raw commodities like gold, silver, and wheat were bought and sold. Dennis quickly made a name for himself with his aggressive trading style and remarkable ability to predict market movements.

His success in the pits was just the beginning. Dennis amassed substantial wealth through his trading activities, but what truly set him apart was his desire to teach others his methods. This led to the legendary Turtle Trading Experiment, where he sought to prove that successful trading could be taught systematically.

Key Achievements and Contributions

  • Turtle Trading Experiment: In the early 1980s, Richard Dennis partnered with Bill Eckhardt to test his theory that trading success could be taught. They selected a group of novices, known as “Turtles,” and trained them using a set of predefined rules. The experiment was a resounding success, with the Turtles generating significant profits, thus validating Dennis’s belief in systematic trading.
  • Author and Educator: Dennis authored several influential books and articles on trading strategies, risk management, and market analysis. His works continue to inspire traders worldwide.
  • Mentorship and Legacy: Beyond the Turtle Experiment, Dennis has mentored countless traders, instilling in them the principles of discipline, strategy, and resilience. His legacy is evident in the many successful traders who have adopted his methodologies.

Tip: Understanding Richard Dennis’s journey from a pit trader to a trading legend underscores the importance of discipline, continuous learning, and the willingness to innovate in the world of trading.

The Birth of the Turtle Trading System essence of the experiment, the training process, and the systematic rules of the Turtle Trading System

The Birth of the Turtle Trading System

The Turtle Experiment: A Bold Hypothesis

In 1983, Richard Dennis and his partner Bill Eckhardt embarked on a groundbreaking experiment to test a simple yet bold hypothesis: “Can great traders be trained?” Dennis believed that trading success wasn’t solely dependent on innate talent but could be taught through a structured system.

Purpose and Outcome of the Experiment

The experiment involved selecting a group of individuals with no prior trading experience—ranging from university students to restaurant managers—and training them intensively over a two-week period. Dennis provided them with a set of clear, rule-based trading strategies, emphasizing discipline and consistency.

The outcome was nothing short of extraordinary. The Turtles, as they came to be known, generated substantial profits, proving that with the right training and systems, anyone could become a successful trader. This experiment not only validated Dennis’s beliefs but also laid the foundation for the Turtle Trading System.

Introduction to the Turtle Trading System

The Turtle Trading System is a trend-following strategy that relies on mechanical rules to identify entry and exit points in the market. Its core principles include:

  • Trend Identification: Recognizing sustained market movements.
  • Risk Management: Controlling exposure to any single trade.
  • Position Sizing: Allocating appropriate capital based on volatility.
  • Discipline: Adhering strictly to the trading rules without emotional interference.

Tip: The success of the Turtle Trading System highlights the power of mechanical, rule-based trading. By removing emotions from the equation, traders can make more objective and consistent decisions.

core principles of the Turtle Trading System: Trend Following, Breakout Strategies, Position Sizing, and Stop Losses

Core Principles of the Turtle Trading System

1. Trend Following: Riding the Market Waves

At the heart of the Turtle Trading System is the trend-following strategy. This involves identifying and capitalizing on sustained market trends—both upward and downward.

  • How It Works: The system uses specific indicators to determine the direction and strength of a trend. Once a trend is identified, the system takes positions in the direction of the trend, holding them as long as the trend persists.
  • Benefits: Trend following allows traders to ride significant market movements, maximizing potential profits while minimizing the impact of short-term volatility.

2. Breakout Strategies: Seizing Opportunities

Breakout strategies are crucial in the Turtle Trading System. A breakout occurs when the price of a commodity moves beyond a defined support or resistance level.

  • Identifying Breakouts: The Turtles used predefined entry points based on historical price data. For example, they might enter a long position when the price breaks above its 20-day high or a short position when it falls below its 20-day low.
  • Execution: Once a breakout is confirmed, the system triggers a trade in the direction of the breakout, anticipating that the trend will continue.

3. Position Sizing: Managing Exposure

Position sizing is a critical component of the Turtle Trading System, ensuring that no single trade can significantly impact the overall portfolio.

  • Volatility-Based Sizing: The system adjusts the size of each position based on the volatility of the market. Higher volatility leads to smaller position sizes, reducing risk, while lower volatility allows for larger positions.
  • Risk Control: By adhering to strict position sizing rules, the Turtles maintained a balanced portfolio, protecting their capital from excessive losses.

4. Stop Losses: Protecting Capital

Stop losses are predefined points at which a position is closed to prevent further losses.

  • Setting Stop Losses: The Turtles used stop-loss orders based on market volatility, ensuring that losses on any single trade were limited.
  • Importance: Stop losses are essential for risk management, helping traders protect their capital and maintain discipline by preventing emotional decision-making.

Tip: Incorporate robust risk management techniques like position sizing and stop losses to safeguard your portfolio against unexpected market movements.

Turtle Trading Rules and Execution key elements like trend following, breakouts, position sizing, and risk management

Turtle Trading Rules and Execution

Detailed Breakdown of the Turtle Trading Rules

The Turtle Trading System is governed by a set of clear, mechanical rules that dictate when to enter and exit trades. Here’s a detailed breakdown:

  1. Market Selection:
    • Trade a diverse range of markets, including commodities, currencies, and bonds.
    • Avoid over-concentration in any single market to diversify risk.
  2. Entry Rules:
    • Breakout Entry: Enter a trade when the price breaks above the 20-day high (for long positions) or below the 20-day low (for short positions).
    • Confirmation: Ensure that the breakout is supported by volume or other indicators to confirm its validity.
  3. Exit Rules:
    • Trend Reversal: Exit a position when the price breaks below the 10-day low (for long positions) or above the 10-day high (for short positions).
    • Stop Loss: Automatically close a position if it moves against you by a predefined amount based on volatility.
  4. Position Sizing:
    • Determine the size of each position based on the volatility of the market.
    • Use a fixed percentage of the portfolio for each trade to maintain consistent risk exposure.
  5. Risk Management:
    • Limit the maximum number of simultaneous positions to avoid overexposure.
    • Diversify across different markets to spread risk.

How to Execute Trades According to the System

Executing trades in the Turtle Trading System involves adhering strictly to the predefined rules without deviation. Here’s how to implement the system:

  1. Identify the Trend:
    • Use technical indicators to determine the current trend in a market.
    • Look for sustained price movements that indicate a strong trend.
  2. Monitor Breakouts:
    • Keep an eye on key support and resistance levels.
    • Enter a trade when the price breaks out of these levels, signaling the start of a new trend.
  3. Manage Positions:
  4. Adhere to Exit Rules:
    • Close positions when the trend shows signs of reversal.
    • Avoid holding onto losing positions beyond the stop-loss threshold.

Examples of Specific Trading Scenarios and Decisions

Scenario 1: Long Position Entry

  • Market: Gold
  • Current Trend: Upward
  • 20-Day High: $1,800
  • Breakout: Price rises above $1,800
  • Action: Enter a long position at $1,805
  • Stop Loss: Set at $1,750 (based on volatility)

Scenario 2: Short Position Entry

  • Market: Crude Oil
  • Current Trend: Downward
  • 20-Day Low: $60
  • Breakout: Price falls below $60
  • Action: Enter a short position at $59
  • Stop Loss: Set at $65 (based on volatility)

Scenario 3: Position Exit

  • Market: S&P 500 Futures
  • Initial Entry: Long at 3,000
  • Current Price: 3,200
  • 10-Day Low: 3,150
  • Action: Exit the position if the price falls below 3,150

Tip: Use real-life examples to practice and understand how the Turtle Trading System operates in different market conditions, enhancing your ability to execute trades effectively.

Risk Management in Turtle Trading key concepts like risk-reward balance, position sizing, and diversification

Risk Management in Turtle Trading

Importance of Risk Management

Risk management is the cornerstone of the Turtle Trading System. Without proper risk controls, even the best trading strategies can lead to significant losses. The Turtles prioritized preserving capital to ensure long-term success.

Techniques Used by the Turtles to Manage Risk

The Turtle Trading System employs several key techniques to manage and mitigate risk:

  1. Position Sizing:
    • Adjust the size of each position based on the volatility of the market.
    • Use the Average True Range (ATR) to measure volatility and determine the appropriate position size.
  2. Diversification:
    • Trade multiple markets to spread risk across different asset classes.
    • Avoid over-concentration in any single market to reduce exposure to specific risks.
  3. Stop Losses:
    • Implement strict stop-loss orders to limit potential losses on each trade.
    • Use volatility-based stop losses to adapt to changing market conditions.
  4. Risk Limits:

Balancing Risk and Reward in Trading Decisions

Balancing risk and reward is essential for optimizing trading performance. The Turtles aimed to achieve high returns while keeping risks at manageable levels.

  • Risk-Reward Ratio: Strive for a favorable risk-reward ratio, where potential rewards outweigh potential risks.
  • Consistent Profit Targets: Set clear profit targets based on market conditions and trend strength.
  • Adaptive Strategies: Adjust risk parameters based on evolving market dynamics to maintain a balanced approach.

Tip: Continuously evaluate and adjust your risk management techniques to ensure they align with your overall trading strategy and market conditions.

Performance and Legacy of the Turtle Traders captures the historical performance, success stories, and lasting influence of the Turtle Trading System

Performance and Legacy of the Turtle Traders

Historical Performance of the Turtle Trading System

The Turtle Trading System has a proven track record of delivering impressive returns. During the original Turtle Experiment, the Turtles generated substantial profits, often outperforming professional traders and institutional investors. Their success was attributed to the system’s disciplined approach and effective risk management.

  • Consistent Returns: The Turtle Trading System consistently delivered positive returns across various market conditions.
  • Outperformance: Compared to the broader market indices, the Turtles often achieved higher returns, validating the effectiveness of trend-following strategies.
  • Longevity: The principles of the Turtle Trading System have remained relevant over decades, demonstrating their enduring applicability.

Success Stories of Original Turtle Traders

Many of the original Turtles went on to achieve significant success in their trading careers, leveraging the foundational principles they learned during the experiment.

  • Curtis Faith: Often referred to as “The Turtle Professor,” Faith became a renowned trader and educator, applying the Turtle Trading principles to his own successful trading career.
  • Linda Bradford Raschke: A prominent trader who credits her success to the disciplined approach instilled by the Turtle Trading System.
  • Michael Covel: An author and advocate of trend following, Covel draws heavily from the Turtle Trading principles in his work.

How the System Has Influenced Modern Trading Strategies

The Turtle Trading System has had a lasting impact on the trading world, influencing various modern trading strategies and methodologies.

  • Trend Following Popularity: The system popularized trend-following strategies, making them a staple in many traders’ arsenals.
  • Algorithmic Trading: The rule-based nature of the Turtle Trading System laid the groundwork for the development of algorithmic trading systems that rely on predefined rules and automation.
  • Educational Programs: Numerous trading courses and educational programs incorporate Turtle Trading principles, teaching new generations of traders the importance of discipline and systematic trading.

Tip: Study the success stories of the original Turtle Traders to gain insights into how disciplined application of the system can lead to sustained trading success.

Adapting Turtle Trading to Modern Markets represents modern tools, diversified markets, and the need for flexible risk management

Adapting Turtle Trading to Modern Markets

Challenges of Applying Turtle Trading in Today’s Markets

While the Turtle Trading System has proven effective over time, modern markets present new challenges that require adaptations to the original strategy.

  • Increased Market Efficiency: With advancements in technology and widespread access to information, markets have become more efficient, making it harder to identify profitable trends.
  • Higher Frequency Trading: The rise of high-frequency trading has increased market volatility and reduced the lifespan of trends, complicating trend-following strategies.
  • Globalization: The interconnectedness of global markets means that local trends can be influenced by international events, requiring a broader perspective.
  • Regulatory Changes: Evolving regulations impact market dynamics and trading strategies, necessitating continuous adaptation.

Modifications and Adaptations to the Original System

To address these challenges, traders need to modify and adapt the Turtle Trading System while maintaining its core principles.

  1. Enhanced Technology:
    • Utilize advanced trading platforms and algorithms to identify and execute trades more efficiently.
    • Implement machine learning and artificial intelligence to refine trend identification and signal generation.
  2. Diversified Market Selection:
    • Expand the range of markets traded to include emerging asset classes like cryptocurrencies and ETFs.
    • Incorporate global markets to capture trends influenced by international events.
  3. Dynamic Risk Management:
    • Adapt risk management techniques to account for increased market volatility.
    • Use more sophisticated models to assess and manage risk in real-time.
  4. Flexible Time Frames:
    • Adjust the time frames used for trend identification to align with faster-moving markets.
    • Incorporate shorter-term trends alongside long-term trends to capitalize on a wider range of opportunities.

Tools and Resources for Implementing a Modern Version of Turtle Trading

Modern traders have access to a plethora of tools and resources that can enhance the implementation of the Turtle Trading System.

  • Advanced Charting Software: Platforms like TradingView and MetaTrader offer robust charting tools and indicators to identify trends and breakouts.
  • Automated Trading Systems: Use platforms like QuantConnect or NinjaTrader to develop and deploy automated Turtle Trading strategies.
  • Data Analytics Tools: Leverage tools like Python with libraries such as Pandas and NumPy for in-depth data analysis and backtesting.
  • Educational Platforms: Enroll in courses and webinars that focus on trend-following and quantitative trading strategies to stay updated with the latest developments.

Tip: Embrace modern trading technologies and continuously educate yourself on new tools to enhance your ability to implement and adapt the Turtle Trading System effectively.

Learning from Richard Dennis’s Philosophy with elements like discipline, systematic trading, emotional control, and adaptability

Learning from Richard Dennis’s Philosophy

Key Takeaways from Richard Dennis’s Approach to Trading

Richard Dennis’s trading philosophy offers several valuable lessons for both novice and experienced traders:

  • Discipline is Paramount: Adhering strictly to predefined rules and strategies is essential for consistent trading success.
  • Systematic Approach: A rule-based system reduces emotional interference, promoting objective decision-making.
  • Risk Management: Effective risk controls protect capital and ensure long-term sustainability.
  • Adaptability: While maintaining core principles, being flexible and adapting to changing market conditions is crucial.
  • Continuous Learning: The willingness to learn and evolve strategies based on new data and insights drives ongoing success.

The Psychological and Emotional Aspects of Successful Trading

Successful trading isn’t just about having the right strategies—it’s also about managing the psychological and emotional challenges that come with the territory.

  • Emotional Control: Fear and greed can lead to impulsive decisions that undermine trading strategies. Maintaining emotional discipline is crucial for sticking to the system.
  • Patience: Trends don’t always develop quickly. Patience allows traders to wait for the right opportunities and ride out short-term volatility.
  • Resilience: Facing losses and setbacks is part of trading. Resilience enables traders to recover and continue pursuing their strategies without being derailed by failures.
  • Confidence: Trusting in the system and its rules fosters confidence, encouraging traders to make decisions based on strategy rather than speculation.

Tip: Develop strong emotional and psychological resilience through practices like meditation, journaling, and continuous education to enhance your trading performance.

How to Develop Discipline and Consistency Like a Turtle Trader

Discipline and consistency are the bedrock of the Turtle Trading System. Here’s how you can cultivate these essential traits:

  1. Set Clear Rules:
    • Define your trading rules and stick to them without deviation.
    • Ensure that your rules cover all aspects of trading, including entry, exit, position sizing, and risk management.
  2. Automate Your Strategy:
    • Use automated trading systems to execute trades based on your predefined rules.
    • Automation reduces the influence of emotions and ensures consistent application of your strategy.
  3. Maintain a Trading Journal:
    • Document all your trades, including the rationale behind each decision.
    • Reviewing your journal helps identify patterns, strengths, and areas for improvement, fostering continuous learning and discipline.
  4. Set Realistic Goals:
    • Establish achievable trading goals that align with your risk tolerance and investment horizon.
    • Avoid setting overly ambitious targets that can lead to impulsive and risky decisions.
  5. Regularly Review and Adjust:
    • Periodically assess the effectiveness of your trading system and make necessary adjustments based on performance data.
    • Stay flexible and open to refining your approach as you gain more experience and insights.

Tip: Create a structured trading plan and adhere to it rigorously, ensuring that every trade aligns with your established rules and objectives.

How to Start Trading Like Richard Dennis illustrates the step-by-step process for implementing the Turtle Trading System

How to Start Trading Like Richard Dennis

Implementing the Turtle Trading System involves a series of well-defined steps. Here’s how you can get started:

Step-by-Step Guide to Implementing Turtle Trading Principles

  1. Understand the Core Principles:
    • Familiarize yourself with the key components of the Turtle Trading System, including trend following, breakout strategies, position sizing, and risk management.
  2. Select Suitable Markets:
  3. Set Up Your Trading Platform:
    • Use a reliable trading platform that offers advanced charting tools and the ability to set automated trading rules. Platforms like MetaTrader, TradingView, and NinjaTrader are popular choices.
  4. Develop Your Trading Rules:
    • Define clear rules for entering and exiting trades based on trend and breakout signals.
    • Incorporate position sizing and stop-loss rules to manage risk effectively.
  5. Backtest Your Strategy:
    • Use historical data to test your trading strategy’s performance. Backtesting helps you understand how your system would have performed in different market conditions.
    • Adjust your rules based on backtesting results to optimize performance.
  6. Start with a Demo Account:
    • Practice your trading strategy in a simulated environment before committing real capital. A demo account allows you to refine your approach without financial risk.
  7. Implement the Strategy with Real Capital:
    • Once you’re confident in your system, start trading with real money. Begin with smaller positions to manage risk effectively.
    • Gradually increase your position sizes as you gain experience and see consistent results.
  8. Monitor and Rebalance:
    • Continuously monitor your portfolio and adjust positions based on market trends and performance.
    • Regularly rebalance your portfolio to maintain alignment with your trading rules and risk parameters.
  9. Keep Learning and Adapting:
    • Stay updated with market developments and continuously seek to improve your trading strategy.
    • Learn from your trading experiences and make necessary adjustments to enhance performance.

Tip: Take a structured approach to implementing the Turtle Trading System, ensuring that each step is thoroughly executed to maximize your chances of success.

Resources for Learning More About Turtle Trading

To deepen your understanding of the Turtle Trading System and enhance your trading skills, explore the following resources:

  • Books:
    • Way of the Turtle by Curtis Faith: Offers an insider’s perspective on the Turtle Trading Experiment and the principles that guided the Turtles to success.
    • The Complete TurtleTrader by Michael Covel: Chronicles the story of the Turtle Traders and delves into the strategies that made them successful.
  • Online Courses and Webinars:
    • Investopedia Academy: Offers courses on trend following and quantitative trading.
    • Coursera and Udemy: Provide courses on algorithmic trading and technical analysis that align with Turtle Trading principles.
  • Trading Communities:
    • Elite Trader: A forum where traders discuss strategies, share insights, and learn from each other.
    • Reddit’s r/algotrading: A community focused on algorithmic trading and quantitative strategies.
  • Research Papers and Articles:
    • Explore academic journals and financial publications for in-depth analyses of trend-following strategies and the Turtle Trading System.

Tip: Continuously seek out educational resources and engage with trading communities to stay informed and inspired on your trading journey.

Tips for Beginners Looking to Follow Dennis’s Strategies

For those new to trading or the Turtle Trading System, here are some tips to help you get started:

  1. Start Small:
    • Begin with a small portion of your capital to minimize risk as you learn the ropes.
    • Gradually increase your investment as you gain confidence and experience.
  2. Be Patient:
    • Trading is a marathon, not a sprint. Allow time for your strategies to develop and mature.
    • Avoid the temptation to make impulsive trades based on short-term market movements.
  3. Stay Disciplined:
    • Adhere strictly to your trading rules, even when faced with losses or market volatility.
    • Maintain emotional control to ensure consistent application of your strategy.
  4. Keep a Trading Journal:
    • Document every trade, including the rationale behind it and the outcome.
    • Use your journal to analyze your performance and identify areas for improvement.
  5. Seek Mentorship:
    • Connect with experienced traders or join trading communities to gain insights and guidance.
    • Learning from others can accelerate your understanding and application of the Turtle Trading principles.
  6. Continuously Learn:
    • Stay updated with market trends, new trading strategies, and advancements in trading technology.
    • Invest in your education to enhance your trading skills and adaptability.

Tip: Embrace a learning mindset, being open to continuous improvement and adaptation as you navigate the trading landscape.

Summary of Richard Dennis’s Impact on Trading with his contributions to the Turtle Trading System and their relevance in modern trading

Summary of Richard Dennis’s Impact on Trading

Richard Dennis’s contributions to the trading world are both profound and far-reaching. Through the creation of the Turtle Trading System, Dennis demonstrated that disciplined, rule-based trading strategies could lead to consistent success. His Turtle Experiment showcased the power of teaching systematic trading principles, proving that trading excellence could be achieved through education and structured methodologies.

Relevance of Turtle Trading Today

In today’s fast-paced and technologically advanced markets, the principles of the Turtle Trading System remain highly relevant. Trend following, breakout strategies, and rigorous risk management are as applicable now as they were during the original Turtle Experiment. While market conditions have evolved, the foundational principles of disciplined and data-driven trading continue to offer valuable guidance for modern traders.

  • Technological Integration: Modern tools and platforms enhance the implementation of Turtle Trading strategies, making them more accessible and efficient.
  • Global Markets: The diversification of markets offers new opportunities for trend following and breakout trading.
  • Advanced Analytics: Enhanced data analysis capabilities allow for more precise and informed trading decisions.

Encouragement for Readers to Explore and Practice the System

If you’re eager to enhance your trading skills and achieve consistent success, exploring and practicing Richard Dennis’s Turtle Trading System is a worthwhile endeavor. Embrace the disciplined approach, adhere to the mechanical rules, and prioritize risk management to build a robust and resilient trading portfolio.

Take Action:

  1. Educate Yourself: Dive deeper into the Turtle Trading System by reading Way of the Turtle by Curtis Faith and The Complete TurtleTrader by Michael Covel.
  2. Develop Your Strategy: Define clear trading rules based on trend following, breakout strategies, position sizing, and risk management.
  3. Practice and Refine: Use demo accounts to practice your strategy, refine your approach, and build confidence before committing real capital.
  4. Stay Disciplined: Maintain consistency and discipline in your trading, adhering to your system even during challenging market conditions.
  5. Monitor and Adapt: Continuously monitor your performance, make necessary adjustments, and stay adaptable to evolving market dynamics.

By adopting the Turtle Trading principles, you can navigate the complexities of the financial markets with greater confidence and strategic insight, ultimately achieving your long-term investment goals.

Important Information

Investment Disclaimer: The content provided here is for informational purposes only and does not constitute financial, investment, tax or professional advice. Investments carry risks and are not guaranteed; errors in data may occur. Past performance, including backtest results, does not guarantee future outcomes. Please note that indexes are benchmarks and not directly investable. All examples are purely hypothetical. Do your own due diligence. You should conduct your own research and consult a professional advisor before making investment decisions. 

“Picture Perfect Portfolios” does not endorse or guarantee the accuracy of the information in this post and is not responsible for any financial losses or damages incurred from relying on this information. Investing involves the risk of loss and is not suitable for all investors. When it comes to capital efficiency, using leverage (or leveraged products) in investing amplifies both potential gains and losses, making it possible to lose more than your initial investment. It involves higher risk and costs, including possible margin calls and interest expenses, which can adversely affect your financial condition. The views and opinions expressed in this post are solely those of the author and do not necessarily reflect the official policy or position of anyone else. You can read my complete disclaimer here

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