Trading Book Library

Condensed wisdom from 62 trading books (17MB, 3M words). Extracted frameworks, principles, and techniques.

Core Frameworks

The Turtle Trading System (Turtle Trader, Way of the Turtle)

• Entry: 20-day breakout (buy above 20-day high)
• Exit: 10-day breakout in opposite direction
• Position sizing: ATR-based, risk 1-2% per trade
• Pyramiding: Add at 0.5 ATR intervals, max 4 units
• Principle: "Trade what you see, not what you think"

Risk Management (Trading in the Zone, Market Wizards)

• Core rule: Never risk more than 1-2% on any single trade
• R-multiple: Every trade expressed as risk/reward multiple
• Expectancy: (Win% × Avg Win) - (Loss % × Avg Loss)
• Drawdown management: Scale down at 20% DD, stop at 30%
• Principle: Mark Douglas: "Anything can happen"