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Jon Boorman
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Jon Boorman, CMT, is a market technician, analyst, and trader with over 25 years experience in global equity, forex, and futures markets, a former sales trader to hedge funds and institutions, prop trader, and buy-side head of desk.
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  • Remembering Turtle Trader Liz Cheval 4 comments
    Mar 12, 2013 7:51 AM

    Last night EMC Capital Management announced the passing of their Founder and Chairman Elizabeth Cheval. Managing Director John Krautsack remarked that "Liz was highly regarded by her peers throughout the managed futures community and recognized as one of the leaders of the industry from its earliest stages."

    For those that aren't familiar with her name, she was one of the original 'Turtle Traders', the famed program that featured in the Market Wizards interview with Richard Dennis and, as legend has it, was devised as a means to settle a debate with fellow trader William Eckhardt that successful trading could be taught.

    Upon completion of the program, Liz Cheval was one of several 'turtles' who went on to start their own funds and continued to have significant success. The most recent update of performance on the EMC Capital website shows an annualized return of 21.08% since 1985.

    As you should expect, there is some volatility in achieving those returns, something she touched on here:-

    "In any game, if you know you'll win, naturally you'd make your bet on the outcome as large as possible. The same is true in trading when you have reasonable expectations of positive returns. The only difference is that the degree of aggressiveness in trading is limited by two factors: the need to preserve capital during losing periods so you can stay in the game until a winning period, and the need to preserve psychological fortitude to keep playing."

    I will leave you with a revealing interview posted by Attain Capital from August 2011 where she talks about her early career on the floor of the Chicago Board of Trade, responding to Dennis' ad and becoming one of the turtles, and after many years of consistent returns what it takes to succeed. There are some valuable insights on system robustness and the need to adapt a system to changing market conditions. Enjoy.

    Liz Cheval: From Turtle To Titan (Attain Capital)

    Themes: Trend Following, Turtle Traders, Liz Cheval
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  •  
    A very sad day for the industry. Liz was a cornerstone of the managed futures business.

    Robert C Osmanski
    12 Mar, 10:17 AM Reply Like
  •  
    Farewell Liz. A great trader, a legend and a great friend. All our best to the EMC team.
    13 Mar, 06:45 AM Reply Like
  •  
    Heaven has another angel. My husband and I met Liz for the first time this summer. She opened her beautiful guest house for us while we were in Lake Forrest facilitating a yoga teacher training. Her kindness, generosity, and openness were what I knew of this very powerful woman. We knew she had another very busy, success life in the business world and were deeply touched by the time and care she took to make sure that we had everything we needed. We are left with cherished memories of a generous woman, powerful leader, and a loving spirit. Thank you, LIz! God bless. Claire and Gregor
    13 Mar, 10:19 AM Reply Like
  •  
    my husband and i met liz through our sister-in-law, nancy. they were the best of friends. we were so happy to get to spend some time with liz over the last several years. it was obvious that she was not only amazingly intelligent, but also so warm and personable; she lit up a room with her positive, affable spirit. rest peacefully, liz. jill and joel
    15 Mar, 02:33 AM Reply Like
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