The Turtle trading experiment in the 1980s is often credited with popularising the trend-trading system. The experiment was conducted by the legendary commodities trader Richard Dennis, who believed that trading skills could be taught and that anyone could learn to become a successful trader.
Dennis selected a group of inexperienced traders, known as the “Turtles,” and taught them his trend-following system, which involved using technical analysis to identify and trade trends in the markets. The Turtles were taught to use a variety of indicators and risk management techniques and it was a success.
It’s difficult to estimate exactly how much the Turtle traders made, but some sources state it was over $100 million. Several of the Turtle Traders went on to become successful traders in their own right, including Jerry Parker, who founded Chesapeake Capital and reportedly generated over $1 billion in profits for his clients, and Paul Rabar, who founded Rabar Market Research and reportedly achieved annual returns of over 20% for over two decades.
Note, however, that all trading, including trend following, contains high risk of a loss. Markets move up and down, trends reverse, and past performance is not a guarantee of future results.